My May 4 blog post suggesting that magazine distributor NDD is about to go with First Fleet for logistics in Victoria and New South Wales was accurate. The robust denials from NDD executives three months ago appear to have been hot air as they are expected to announce tomorrow that they are moving magazine packaging and distribution to First Fleet by the end of this month.
This decision has many implications for newsagents. It makes other parts of the distribution channel less viable, reduces delivery days – a possible 6 day a week distribution (important for extra supply, fixing mistakes and also if the titles run late from the printers) – to a 1 to 2 day a week distribution. The new people at NDD are behind this move from what I hear – although the spin will be that this is a good move for publishers and newsagents and that all of NDD is behind it.
With the announcement, NDD loses a key point of difference and this can only add to the challenges of their business model.
not sure if this is exactly related or not. but the transport company for newcastle GG & network, manhood, has been given the axe (they were subcontracted to first fleet) so first fleet will be doing the delivieries themselves. today was the last day apparantley, there has been no communication to newsagents, so it will be interesting how this will effect the deliveries