The move by NZ Post to take over the logistics of Dick Smith is part of a strategy to target the global online shopping market to further grow its business.
NZ Post Group will take over distribution of Dick Smith’s products to its 61 stores nationwide and support its online sales direct to customers.
It will run Dick Smith’s warehouse operation in South Auckland and the 21 people working at the site will become employees says NZ Post head of international parcels and logistics Alastair Floyd.
Floyd says the agreement, in which NZ Post manages the distribution and delivery of Dick Smith products in New Zealand for Australia Post’s Star Track, was an important step.
“Growing our parcels and e-commerce businesses is a core part of NZ Post’s future direction. International supply chain capability and management are key foundations of this.
“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 supply chain director, John Skellern says working with NZ 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.”
The agreement is possible due to the strategic alignment between NZ Post and Australia Post (Star Track), formed in 2013, says Floyd. It provides an effective end-to-end value chain for Australasian brands such as Dick Smith to help them grow. It also sets the groundwork for similar agreements with other retail companies across Australasia.
