New Zealand Post wins deal with major electronics retailer

New Zealand Post wins deal with major electronics retailer

New Zealand Post has won a contract to provide delivery and supply chain services for the largest bricks-and-mortar electronics retailer in Australia and New Zealand. The deal is being operated in partnership with Australia Post, with New Zealand Post handling the New Zealand part of the arrangements so that Dick Smith can expand its business across Australasia.

New Zealand Post will run the retailer’s warehouse operation in South Auckland, with 21 employees transferring to the Post. The state-owned postal service will also take over distribution of products to 61 Dick Smith stores across New Zealand.

It will also support the retailer’s e-commerce activities, delivering items bought online direct to the consumer.

Alastair Floyd, the New Zealand Post head of international parcels and logistics said: “The agreement is significant for New Zealand Post, and we are very pleased to be able to secure the jobs of 21 Dick Smith staff at the site.

“The staff are experienced in servicing an electronic logistics supply chain and will add to the mix of expertise New Zealand Post brings to supply chain management.”

Alliance

Floyd said the deal with Dick Smith was made possible by the alliance with Australia Post’s Star Track business, formed in 2013. The alliance means Australasian brands can have an end-to-end supply chain provided by the Posts.

The Dick Smith deal provides the groundwork for similar agreements with other retail companies, he said.

“As we announced in our new strategy late last year, growing our parcels and e-commerce businesses is a core part of New Zealand Post’s future direction. International supply chain capability and management are key foundations of this,” said Floyd.

“By using New Zealand Post Group’s extensive reach in New Zealand and the breadth of services we offer we can create global supply chain solutions with international operators and support retailers’ growth of online shopping, a market reality in today’s consumer market.”

Dick Smith has been operating since 1968 and currently has 359 stores across Australia and New Zealand, making the claim it is the largest consumer electronics retailer in Australasia by store footprint.

The firm had a revenue of AUD $1.3bn ($1.2bn USD) in 2013, putting it among the top three Australian electronics retailers by revenue.

Dick Smith Director of Property, Procurement & Supply Chain, John Skellern said working with New Zealand Post to manage the supply chain and drive online revenue growth would support Dick Smith’s future direction.

“This relationship also lays the foundations for increased value and convenience for both Dick Smith and New Zealand Post customers through a number of joint initiatives, including click and collect for consumers purchasing on-line but collecting goods in-store.”

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