The move of NDD titles to now be distributors by First Fleet, the company which also handles Network and Gotch magazines, is impacting newsagents as this report from one colleague explains:
This morning we received our mags at 5.45am. The driver blamed the fact that they now deliver NDD as well as Gordon & Gotch.
He claimed that the NDD product is not allowed into the G&G & NDC warehouse to be split up for distribution.
They are currently using this Transport Subcontractors own warehouse to split the orders. The product is also arriving late.
Net result, we have had to go out twice to deliver mags to our 22 Sub Agents.
This obviously increases our distribution costs and reduces sales. Wednesday Mags in particular have their highest sales on the first day.
If the Subagents do not get there Mags until mid morning their is a massive sales decrease.
This is the second week that this has happened.
While suppliers cut costs out of their supply chain, this demonstrates a lack of regard for newsagent costs.
It also demonstrates a lack of regard for the many small publishers that uses NDD to distribute their product.
If NDD start to mimic other distibutors they may loose their point of difference – the very reasons some publishers choose them over G&G and Network.
Add to that, the area of NSW I am in has the misfortune to be serviced by a contractor who subsequently picked up Australia Post contracts, which they have to give priority to.
End result? Almost exactly the same as detailed above by Mark. Perhaps there should be “priority” clauses inserted in contractors agreements as well.I have been told, off the record of course, by an employee of said contractor, they get to the magazines when they have spare time. Says a lot.