Greater Melbourne RFP reminder
A reminder that the RFP for Greater Melbourne is now open and closes on April 9th. If you have already responded we thank you for your interest and we can be contacted through the RFP portal.
If you are yet to register, a copy of the announcement and a link to register is below
Distribution Services – Request for Proposals
Background
Initially prompted by an increase in the number of distribution newsagents relinquishing the territories they serviced, News Corp Australia (News) undertook a review of its Distribution model in the Sydney and in South-East Queensland markets.
Throughout these reviews, including the full transition in Sydney to the new, consolidated distribution network we have informed agents and newsagent associations that Greater Melbourne was being considered as the next logical step.
Our key objectives were, and continue to be to
- Deliver a model that is more agile, efficient, and sustainable for News and its Distributors.
- Provides News with the transparency of data in the end-to-end process including sub-agent data and subscribers.
Market & Industry Feedback
The existing distribution model is under pressure due to the changing nature of the market and recent declines in circulation.
The feedback from the industry confirmed that there are several attributes that any new model should possess and current issues it must address.
They are:
1. Consolidation – Overwhelmingly the feedback indicated that the consolidation of territories is crucial if we are to increase the sustainability of the distribution of newspapers in these markets.
2. The Remuneration model – A new model must recognise the different costs to serve different regions and customer types and the remuneration should reflect the work undertaken rather than a cost per copy approach.
3. Debt – Distribution agents carry significant debt from customer accounts and agents wish News to undertake the billing of both retail and home delivery subscribers
4. Inefficiencies – Existing manual processes should be reduced/eliminated through operational or technological changes if larger territories are to be established.
The model
We have already transitioned to this new consolidated model in Sydney and are currently implementing in South-East Queensland. This new approach sees the traditional distribution agency model transition to a number of Logistics Providers, responsible for the successful movement of newspapers from News Corp Australia print facilities to the end customer.
1. Consolidation
8 territory zones have been proposed to efficiently cover the Greater Melbourne region including Geelong and the Mornington Peninsula.
Potential distributors can choose to submit a proposal for one, several or even all of the zones.
Zone 1 – MEL Geelong
Zone 2 – MEL West
Zone 3 – MEL North
Zone 4 – MEL CBD
Zone 5 – MEL Inner East
Zone 6 – MEL Outer East
Zone 7 – MEL South East
Zone 8 – MEL Mornington Peninsula
2. Remuneration
Respondents to a Request For Proposal (RFP) will be asked to submit their fees to service the larger territories taking into consideration the issues identified in the Industry feedback such as;
● The different costs to service regional portions of any territory and
● Any points throughout the term that would trigger a pre-defined remuneration consideration/discussion
3. Debt
To reduce distributor debt risk and to gain visibility of our customer base, News Corp Australia intends to take on the responsibility of invoicing all customers.
4. Initiatives to improve the efficiency of the distribution model
For that transition and the necessary upscaling required, to be successful it is crucial that we also address current inefficiencies.
Therefore several new initiatives will be incorporated into the new model.
● All home delivery subscribers within the Greater Melbourne footprint will be invoiced by News
● All retailers will also be invoiced by News and our allocations tool will be employed to accurately set and manage supply levels
● The responsibility for the submission of returns figures will shift from the distribution agent to the retailer themselves
● News will be introducing a standard distribution, web-based platform that interacts with our own computer system to manage all customer interactions including stops/starts and the preparation of daily run sheets.
5. Publications
News Corp Australia proposes to supply services to Nine Publishing for the delivery of Nine Publishing publications in the proposed footprint covered by this RFP. Accordingly, the RFP calls for pricing payable by News Corp Australia on providing the distribution services to News Corp Australia for publications from both publishers.
NEXT STEPS
A Request For Proposal (RFP) is now open and will close at 5 pm AEST 9 April 2021.
The mechanism we will use for potential distributors to submit their proposal is the same as we utilised in other markets. An online portal has been created with secure logins so respondents can follow set protocols and we can receive proposals in a consistent format.
Once registered respondents will be asked to supply their details and be given access to
● All known delivery addresses for both retailers and home delivery customers
● Detailed territory classifications and maps
● Approximate delivery times to each territory
● Typical weights and page numbers
Respondents will be asked to complete a template that asks for, amongst other things, calculations or assumptions regarding
● Driver and vehicle numbers by day
● Staffing levels for each depot
● Administrative staffing assumptions
● Depot numbers and proposed locations
● Overall Costs to service
Register to participate in the RFP
All parties are encouraged to participate in the RFP. The first step will be to register by clicking the link below to get to the registration form. This registration information is required to set up your access usernames and passwords for the RFP portal where you will collect more information about the RFP and upload your submission documents.
