Home' The Channel Magazine : National Newsagent June 2012 Contents National Newsagent June 2012
Just over two years ago when the first
contract change was announced, Ken decided
that he needed to act to protect his investment.
He saw consolidation of rounds as the most
efficient way to sustain distribution.
Working with two other agents they created
a new model for distribution which involved
each contributing their distribution territory
based on the gross income levels of their
rounds. This enabled distribution from one
central warehouse and the establishment of
Titan Distribution Holdings (TDH).
“The arrangements had to be clear, simple
and fair with professional management. All the
participating newsagents are shareholders,”
Over the last two years other newsagents
have joined the group and there are now seven
shareholders, thus increasing the efficiency
of the operation. Interest from other agents is
accelerating as T2020 day gets closer.
“It is simply about logistics,” explained Ken.
“We employed a professional with many years
experience in transport logistics to manage
the operation. We now have systems that
facilitate faster wrap and distribution as well
as a specialised customer service person. The
paperwork and accounting is all done centrally,
again adding to the efficiency and accuracy.”
TDH distributes up to 30,000 papers and
also delivers to 250 subagents.
Currently, the papers arrive at midnight and
by 4am the warehouse is deserted.
REVOLUTIONISE AN AGE OLD
The new structure will revolutionise
newspaper distribution in a way that will be
essential if newspaper distribution to homes
and subagents is to be become viable.
NEWSAGENTS RETAIN VALUE
What the Titan model does is allow
newsagents to retain value of their distribution
rounds at a time when they are at risk of losing
it... either through natural attrition of customers
or changes imposed by News Limited or
IT’S ABOUT SCALE
“Logistics is all about scale and the future
of newspaper distribution is no different.
There may be a time when similar hubs exist
around Melbourne or other capital cities and
we can take advantage of a scale previously not
“I expect that in three years only half the
business will be about newspapers. There
are as yet undiscovered opportunities,” Ken
NEWSAGENTS CAN PROVIDE
“Currently News Limited spends about $200
million on logistics—just getting the papers
to point of purchase; with better systems we
can ensure that some of that money flows into
newsagent distribution rounds.
Newsagents in other regions in Victoria
and interstate are looking at the model and
it appears that this could be the way for
newsagents to stay in the game, for publishers
to continue the relationship with the channel,
for all to gain efficiencies and for consumers to
still have ready access to papers.
The Titan model is just one model and
publishers are examining all the options to try
to see what suits them and ensure their papers
are delivered efficiently and cost effectively.
STILL A FUTURE FOR
Despite discussions to the contrary,
newspapers will be around for some time
in the immediate future; there is a need for
distribution and money to be made in the
meantime despite what the media scape may
look like in 10 years time.
TDH conducts information sessions
through a subsidiary company ADA (Allied
Distribution Agents) to inform and assist
as well as provide accounting, logistics,
marketing and planning functions for those
seeking to be involved.
The message is this: act, take the
initiative before unwelcome changes are
forced upon the industry. There will be a
future for volume distributors. Smaller
rounds which currently cause such angst
will most likely disappear and the entire
newspaper distribution landscape will
change. The part of the industry which
causes the greatest headaches may have a
future after all.
Further information on this distribution
model: www.titandist.com.au or Ken Wilson
0419 17 6211.
IT’S ALL ABOUT LOGISTICS
While agents wait and wait to hear what News Limited and Fairfax have planned for
newspaper distribution, a Victorian newsagent, Ken Wilson took matters into his own
hands when he first learned that distribution contracts were to be reviewed.
Part of the roll wrap process at the
“ the Titan model allows newsagents to
retain value of their distribution rounds”
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