FDS - FLATWRAP Logistics and Distribution Circulation Fulfillment model 2013/14

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Information about FDS - FLATWRAP Logistics and Distribution Circulation Fulfillment model...
Business & Mgmt

Published on March 4, 2014

Author: MMPD01

Source: slideshare.net

MISSION STATEMENT FLATWRAP Distribution Services (FDS) was established to provide print sites and publishers a complets range of services and a comprehensive solution in regards to logistic and the creation of distribution models that require specific and regular analysis to ensure the circulation of the publication is not only accurate but is being delivered direct to the intended market as expected - reliable on-time delivery /pristine condition/accurate supply quantity each edition and access to real time reporting (Delivery reports) * FDS General Manager - Simon Coulter will be responsible for the management and implementation of this platform and deliver weekly/daily reporting system that is to be updated as data is received and will ensure that all requests from TVN Mgt receive a response within 2hours and any data will be treated as TVN's Intellectual Property and will be accessible, transparent, based on a reporting system that is simplistic in design and TVN will have complete open book and electronic access to the nominated bank account of their choice where sales revenue is accruing. The TVN sales revenue will be transferred on the 1st day of each and every month to TVN accompanied with the relevant sales and reconciliation reports for each edition . • FLATWRAP/Distribution in Australia and New Zealand. It is our goal to become the specialist supplier of FLATWRAP technology in Australia and New Zealand to publishers, print sites, mailing houses, newsagents, distributors and contractors by the 1st July 2014. All Research and Development is trialled and implemented by our distribution arm – MMPD P/L. • MMPD is an experienced print, magazine and free press distribution specialist and logistics operation and currently operates a daily large paid newsprint and magazine circulation fulfilment platform that has the ability to manage and process retail sales within Australia and has the capability to manage and facilitate the complete account management process within both home delivery and reseller networks. • FDS is currently trialling Aust made bolt on purpose built equipment that will deliver substantial revenues streams currently not available within Aust Newsprint distribution centres. Negotiations have begun with WA interested parties on developing an Aust made all in one FLATWRAP machine. • This additional advertising space & form of direct targeted marketing will allow advertisers to target the intended demographic at a unit cost that is far more competitive and priced at a rate far cheaper than the current players that dominate the market Nationally.


MMPD PERSONELL Managing Director: Simon Coulter Owner: Michelle Coulter Operations Manager: Katrina Roberts Administration Manager: Tina Moore Customer Services Manager: Courtney Hamson Accounts Manager: Kestra Triasmono Distribution Supervisor: John Northcott / Jacob Cordtz Human Resources: Wanita Triasmono The above mentioned personnel have developed and delivered a unique distribution model called P.D.D. This model will continue to become “Smarter” and evolve as the market dictates, Publisher Direct Distribution, combined with a state of the art FLATWRAP distribution facility that specializes in the distribution of newsprint and magazine publications including subscription titles into residential, and commercial areas within SE QLD, Northern NSW, Sydney, Melbourne, Adelaide, Perth, Auckland and Wellington.

MARKET SUMMARY MMPD was created due to the lack of print solution providers within the local market. In accordance to this, with rising costs and the fact that the QLD Newsagent distribution model was plagued by numerous small delivery networks with limited resellers, the model was simply destined to fracture, due to its current state being unviable and outdated. • The absence of a reliable professional print contracting service in the QLD market enabled MMPD to establish a centralized distribution centre that specialises in accurate, targeted, reliable and timely delivery into the market • In 2008 MMPD embarked on a 4 year R&D program embracing FLATWRAP (an innovative unproven technology that allowed for the development of highly profitable revenue streams which included the creation of a new advertising space on printed film) • FLATWRAP significantly reduces labor and service costs and turn around time is improved by up to 50% per shift. • Savings are a minimum of: • 50% when manually inserted • Increased output (200%) when the PF12 hopper unit is in use

TODAY’S SITUATION Today is about recognising and taking the opportunities presented and developing a HD/reseller/ Free Press distribution network that is viable, highly profitable, KPI focused and rewards those entities that are prepared to do the work and invest the capital required. • Current Print distribution networks in both QLD regional & metro areas are fractured and broken. • Strengthening the relationship between publisher and distributor, improving tech, introducing standard bench marking and KPI standards. • Remove Old World Technology and deliver print in a manner that is reliable, accurate & customer service orientated and most importantly delivered – FLAT to the market. The exact format in which they were designed.

CURRENT OPPORTUNITIES The creation of specialist newsprint and magazine distribution centers' that have been specifically designed to deliver premium advertising revenue due to newly created advertising space and features capable of delivering additional advertising revenue. • Offering the total solution including subscription and sub agency based revenue streams. This type of central FLATWRAP facility & distribution centre allows the targeted demographic to be continuously engaged at a relatively low cost to the advertiser with the resources that are currently accessible by the publisher. • Exponential potential in Aust to grow quality brands and deliver a level of customer service not yet witnessed within the Nation. Evolution from Print to Online sales delivery The transformation from distribution centre into profit centre is due to the recent availability & integration of FLATWRAP technology & the review of timely, accurate distribution platforms, that assist with ensuring the brand is always being promoted & delivered when the client expects to receive the daily news same time and position within the property line.

BUSINESS CONCEPT The FLATWRAP model is based on the proven and well established Japanese technology that has been further enhanced by an Australian designed and manufactured Hopper fed conveyor system that increases the output from 1600units per hour to over 3Kunits per hour and the capability to generate a further (6) additional advertising revenue streams. The placement of (7) such units at the NQN Print Facility and additional News Print site in Brisbane will deliver a minimum of 14K wrapped units per 75. MMPD will have the technology, resources and the expected WHS/OHS to provide Print Sites support with regards to the newly created divisions/areas for newspaper distribution within Cairns/Townsville and the SE QLD. • FDS has installed 2 units in Victoria @ Regional sites CA (Commercialization Aust) believe that the MMPD model can be franchised and delivered to market in conjunction with News Ltd future distribution model, which would allow MMPD to retain the master license and sell the remaining licenses in NSW/Vic/TAS/SA/NT. This gives the publisher greater control over the type of personnel who are likely to embrace such a business whilst keeping a close check on the progress of each zone roll out. Export opportunities into North America have been identified and once brand is established and dominant in local market then this opportunity will be explored.

BUSINESS CONCEPT Goal and Objective The objective is to negate current distribution costs to deliver ongoing highly profitable revenue streams within parts of the distribution model which were not attainable until now. Specialised in targeting and marketing campaigns whereby specific demographics are engaged and saturated with the chosen brand, with elements being layered throughout the landscape in which the demographic works, learns, rests, plays & prays. Printed Film – Create viable and innovative revenue streams that engage and excite advertisers which alternatively allows pricing to be charged at a premium rate. • Subscriber based platforms for all print paid/free publications. • FDS has the A4 Magazine and brochure tech to manage this task. • Mailing house and online sales platforms to be built once print media model is established.

COMPETITION Currently in QLD there is no other parties that have the scope, resources or technology to threaten MMPD’s position within the QLD Newsprint and magazine account subscription market, which includes both resellers and home/commercial clients. MMPD’s has a number of competitive advantages which include: • Industry Knowledge. Robust and Dynamic corporate structure • Resources which Incl statewide substantial subcontractor base • Innovative Tech – win8 tablet pc and FLATWRAP • Diverse revenue streams • Suppliers trust and confidence • Ability to establish MMPD distribution networks in major QLD regionals and Northern NSW

PREFERRED OPTION – QLD/NSW (INCL REGIONAL) FLATWRAP Distribution Centre's within Brisbane Metro at Rocklea to cover all HD clients/commercial and subsequent sub – retailer network. Vehicle number subject to information data being made available by John Fairfax Publications. • Gold Coast: service from Logan River to Ballina • Sunshine Coast: service from Caloundra to Gympie • Townsville: service region including specialised commercial deliveries during the hours of 6:00-10:00am and complete all HD before 6am. • Cairns: service City and Northern Beaches and complete all HD before 6:30am The number of vehicles for the above territories are still yet to be determined. Once delivery data is provided MMPD will be able to provide accurate pricing.

FLATWRAP JOYNER X THE NEWSPRINT DISTRIBUTION EVOLUTION The FLATWRAP Joyner X currently has no competitor in the Aust/NZ market. It has replaced old world technology that is not only noisy, smelly, heavy, complicated in design but dangerous due to its violent action with numerous cams and spinning shafts. The FLATWRAP Joyner X has been purchased by a number of Australia’s and New Zealand's major newsprint publishers/print sites. This will result in a range of bolt deliveries on units that will not only double the output but deliver additional revenue streams through new advertising features. • Backed by a national service team peace of mind is guaranteed and fds techs fly anywhere in Australia to complete services on site FLATWRAP technology enhances the workplace and improves work place health and safety due to a low risk assessment, basic design, uncomplicated insert procedure and an operating procedure that delivers impressive safety features and high productivity. This ensures that the operator is not working longer than 15mins per rotation. When compared to the old world tech, today’s operator will produce up to 1800units/hr with minimal exertion and a greatly reduced load on the body. Whereas the old world tech has a number of work place related problems (RONAI/ROTAK) & average output is 800/hr.

DESIGN AND SAFETY DELIVERS POSITIVE RESULTS. The FLATWRAP Joyner is a simple design which offers a number of favorable safety features, to alleviate and ensure safety of the operator, colleagues and surrounding workplace at all times. • From simple shut off to the simple housing that is complete whilst still allowing for ease of maintenance. To date 1st Nov 2012 there has been zero reported accidents, injuries or incidents involving this evolutionary technology. There is currently 66 units operating in Aus and can be quantified as over 26Million FLATWRAP units delivered into the market since 2007. • The FLATWRAP Joyner is a totally enclosed unit that requires no oil or lubricant • It is a basic (3) unit heater blade design that doesn’t allow the operator or staff member to injure or harm their person through accident, lack of concentration or fatigue • Form of FLATWRAP does not produce any toxic or irritating odors/smells that emits almost no noise. Less than 35dB.

INNOVATION and FUTURE DIRECTION MMPD and FDS are committed to the continual development of FLATWRAP technologies and tech that assists with the processing and delivery of both newsprint and magazine publications to the intended market or niche channel. Now available Printed Film – Conveyor Fed Hopper – Newsprint Transporter - Heavier Gauge Film 1214micron. These improvements have all been commercially proven and are delivering results beyond MMPD’s expectations. • MMPD is currently trialing a Hopper Fed conveyor unit which can be used for magazine style publications as well as newsprint (i.e. Mailing House) • Hopper will have the following features built in and simply bolted onto the current unit. Sticky Note Applicator – (4) Insert Lines • Printed Film Improvements and targeted delivery to the exact demographic that our clients require on both a State and National Platform. • PC Tablet tech that is GPS based designed as a point to point navigation system purpose built for Home and Commercial delivery of Newsprint/Internet Sales. Number of specific features that have been developed to ensure real time reporting and transfer of required data and P.O.D at the push of a button. Developing and implementing distribution models that deliver a total solution and a R.O.I within months – not years. (ie Warehousing / Pick, Insertion & Wrap /Distribution / Account Management / Constant evaluation and improvement of business practices. PC Tablet tech that allows for real time reporting and the transfer of data and information when the business requires reducing bottlenecks and ensuring there is less risk of this info or data being lost which is an issue currently with hardcopy. This tech will also allow for SMS communication / email and GPS. It has the same features and capabilities as the current windows based mid level laptop.

LATEST INNOVATION Newsprint Transporter Built in Australia by OCD Fabrications . Newsprint Transporter. Built to handle 50 S.B./750Kgs . Next model can be forked on or off transport.

LATEST INNOVATION FLATWRAP STATION – PRODUCE 6K HALF FOLDED NEWSPRINT PUBLICATIONS WITHIN 60MINS. mmpd vehicles have a number of features that are specific when delivering newsprint and magazine products. (access from all sides – led spotlights – diesel – auto transmission – driving spotlights – mounted warning lights to improve vehicles visibility and warn other road users and soon to carry pc tablet tech. (elec manifests / p.o.d / GPS and many more features.

LATEST INNOVATION FLATWRAP Advertising FLATWRAP Product ready for distribution - 20K units wrapped in 3 hours

PROPOSAL • Hendon site to become the Print Distribution Innovation Centre for South Australia from which all current titles within Global Intertrade’s stable are managed and delivered into both local and interstate markets. • Direct Mail/Subscription Centre that delivers a TOTAL Solution for all clients including database management, developing strategies and implementing circulation full fillment models best suited to each clients budget and business model whilst offering a consultancy component and digital solutions as part of the complete package. • Digital Excellence Facility that teaches & nurtures the nations brightest minds – creating and delivering the latest digital concepts and platforms whilst identifying synergies available through print. • State Training Centre for Logistics/Warehousing and Distribution personnel. • Evolution from Media DC to Internet Sales DC focused on dominating SA/WA and Northern Territory markets.

JOINT VENTURE OPPORTUNITY MMPD and FDS are committed to establishing a Publisher Print Site solutions provider and purpose built DC in a number of cities around Australia, this does include the major regional cities. • Seeking a 5yr agreement that can be discussed in a open and transparent forum MMPD is prepared to provide open book financials each quarter over the 1st year and then every 6months during the term of the agreement. This is to ensure that all parties are comfortable and aware of the costs and profits that this distribution model delivers. • MMPD is seeking a min 30% return and is prepared to offer equity up to 25% share in either or both companies i.e./ MMPD and FDS

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