Netlink contracts logistics to Express Couriers Ltd

ACP Media subsidiary Netlink Distribution Company (Netlink) announced today that it will outsource its logistics business, worth $25million over five years, to Express Couriers Limited. Netlink has more than 50% of the retail market share for logistics and distribution within the New Zealand magazine industry and the contract is believed to be one of the largest in the market.

Express Couriers Limited, a joint venture between DHL and New Zealand Post, will take over the distribution infrastructure currently owned and operated by Netlink, a move that will bring a singular and innovation focus to the delivery supply chain. Netlink will continue to deliver subscription fulfilment, retailer account and publisher management services, merchandising, call centre and customer services. Netlink and Express Couriers’ separate service delivery networks will be fully integrated.

“Outsourcing the warehousing, pick-and-pack and linehaul delivery functions of the business will allow us to focus on the elements of Netlink’s service offering where we can add most value,” says Netlink General Manager, Neil Aston.

Express Couriers CEO Mark Thompson says they are delighted to win the Netlink contract. “Express Couriers incorporates all of New Zealand Post’s premium express and logistics brands including CourierPost, Pace!, SkyRoad and Contract Logistics. This contract means Netlink customers, including more than 5,500 retailers, will get the best distribution service in the country,” he says.

“Through the New Zealand Post network, Express Couriers has scale and flexibility unmatched by any other provider in New Zealand ,” agrees Mr Aston. “Coupled with Netlink’s sole focus on client services we’re confident that engaging Express Couriers means our customers will receive the best distribution solutions available.”

The contract allows for Express Couriers to apply leading technologies and processes to the current model. This will enable Netlink to provide a full track-and-trace service from print to point-of-sale.

”We are extremely excited about the opportunity to lead in the magazine distribution industry,” says Mr Thompson. “Moving to real-time ordering will help reduce wastage and grow copy sales, thereby increasing retailers’ and publishers’ profitability. We will also be able to offer customers transparency and accountability at all stages of the distribution process.”

Express Couriers Limited will take over the logistics function from 1 July 2005 .