New Zealand Publisher Transforms Distribution from Cost Containment to Revenue Generation
Company Size
1,000+
Region
- Pacific
Country
- New Zealand
Product
- RouteSmart for ArcGIS
- RouteSmart Online
Tech Stack
- Geographic Information System (GIS)
- Cloud-based Solutions
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Productivity Improvements
- Revenue Growth
Technology Category
- Analytics & Modeling - Predictive Analytics
- Functional Applications - Fleet Management Systems (FMS)
- Platform as a Service (PaaS) - Connectivity Platforms
Applicable Functions
- Business Operation
- Logistics & Transportation
Use Cases
- Fleet Management
Services
- Cloud Planning, Design & Implementation Services
- System Integration
About The Customer
New Zealand Media and Entertainment (NZME) comprises seven daily newspaper publications, including New Zealand’s number one daily newspaper, The New Zealand Herald, as well as The Herald on Sunday and 23 community titles throughout the country. NZME maintains 2,000 delivery routes with news content reaching 2.2 million New Zealanders every month and sports and entertainment content reaching 1.1 million and 2.7 million, respectively. The company relies on 47 delivery contractors and thousands of drivers across New Zealand to distribute its publications. NZME faces the challenges of managing printing and distribution costs while also working to maintain circulation levels.
The Challenge
Like most news organizations, NZME faces the challenges of managing printing and distribution costs while also working to maintain circulation levels. To distribute all of its publications, the company relies on 47 delivery contractors and thousands of drivers across New Zealand. In the previous business model, the contractors provided NZME with the number of hours required and the distance traveled, which was then used to determine the cents per copy delivery rates. Prior to RouteSmart, NZME conducted an audit process to verify the accuracy of contractor submissions. However, the small sample sets were never entirely comprehensive enough to reassure NZME that the routes were the most economically designed and that the submissions were verified by the contractor. They really had no way to be sure.
The Solution
After examining the available solutions, NZME chose RouteSmart for its route optimization needs because of the company’s expertise in the newspaper publishing industry. Initially, NZME implemented RouteSmart for ArcGIS, the industry-leading, global solution that leverages the latest geographic technologies to produce highly accurate, efficient delivery routes. NZME began by using the solution for route planning and restructuring across all 47 contractors. Two years later, NZME began a second phase to streamline its operations: a two-year project to centralize distribution and optimize routing across their seven daily publications. Following that phase, NZME implemented RouteSmart Online, a cloud-based solution that enabled them to incorporate route information on third-party publications and provide it to NZME’s delivery contractors. Finally, after two successful phases, NZME extended its third-party distribution service to include two additional daily newspapers.
Operational Impact
Quantitative Benefit
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