Proposed Future Distribution Model for attitude 08

PROVIDING

THROUGH: Accountability/Transparency/Reliability

Using distribution optimisation, real time solutions and transparent management reporting 24hrs, 7 days a week

attitude PROPOSAL 10/08- 10th January 2008

This distribution model is specifically designed to minimise the current costs and physical labour pressures that are currently experienced quarterly by attitude magazine.

Mass Media Promotions and Distribution has over 21 years experience in the daily distribution of publisher products within the Australian Newsagent Industry.

MMPD is totally committed to delivering attitude on time in the same pristine condition that this product is produced.

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MMPD Company Structure:

Directors: 1. Simon Coulter 2. John Weeks

Operations Manager: Katrina Torrens.

Distribution Mgrs: 1. John Northcott 2.Craig Coulter

Retail Management: Michelle Coulter.

Promotions Manager: Chris Atherden.

Administration Officer: Nicki Rice.

Permanent Drivers: 10.

Casual Drivers: 8.

Warehouse Casual: 10.

Promotional Staff: 21.

Retail Staff: 24.

VEHICLES: Commercial.

8 X 1tonne Vans ( VW/Mitsubishi)

2 X 4 tonne trucks ( Isuzu)

2 X 1 tonne utes (Ford)

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4 X Sedans (Mazda/Nissan)

MMPD will provide the following benefits to attitude.

1. Considerable reduction of weekly management pressure thru total management of all procedures and processes associated with Human Resources of all current delivery personnel including legal complications.

2. Comprehensive manifest re-design with amalgamation of smaller runs and policing established procedures in regards to arrival time pick up of product and ensuring finishing times are improved and maintained.

3. Focused retail customer service attitude whereby MMPD delivery personnel are instructed and trained in the skills of customer service and satisfaction in dealing with retailers.

4. Continual accurate and transparent SMS delivery times for each distribution route.

5. The ability of attitude to proceed in 2008 with absolute confidence that all distribution matters under MMPD control will be managed with total professionalism, credibility and transparency due to the new distribution model being implemented.

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6. MMPD is focused on delivering a management delivery system which creates goodwill and accountability from the distribution provider – retailer – advertiser – publisher.

7. Mass Media Promotions and Distribution is proudly Queensland owned with over 21 years experience. During the last 2 years this company has revolutionised home delivery and retail sales management within the Qld Newsagent industry due to the development of new technology and the implementation of retail sales techniques. This will create a flow-on effect which will provide direct results that will instil confidence, satisfaction and improved penetration in regards to attitude magazine.

8. This proposed MMPD distribution model will ensure that attitude can concentrate on publishing and designing media products that it is widely respected for without being distracted and hindered by distribution issues.

9. MMPD will be accountable for any discrepencies in regards to non-delivery or shortages that any retailer encounters.

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Variable Cost Model:

1. Cost per unit

2. Cost per weight

3. Vehicle weights

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MMPD Promotions and Sampling:

Since 2004 with the purchase of next generation flat wrapping machines. MMPD can now pick-up, package, sample and promote attitude in any market so desired.

From Corporate sponsored events to the home delivery market our promotions department can take ownership of attitude and deliver this product to the market place in a uncomplicated and attractive form.

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OPERATIONAL MATTERS:

Delivery errors:

1. Reported to attitude by retailer/advertiser.

2. Reported to MMPD immediately

3. MMPD contacts driver responsible for drop

4. MMPD reports to attitude with driver explanation

5. MMPD replaces shortage or deducts stock value from MMPD invoice.

Communication Issues:

Any communication issues that are experienced by any member of attitude or MMPD are to be rectified immediately so that any future repetitive issues are non-existent.

PUBLIC LIABILITY:

MMPD is insured for all possible liability issues.

All vehicles are commercially insured.

Value of policy is $20,000,000.

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MMPD & attitude Distribution Model

PROPOSAL

This partnership between attitude and MMPD will deliver immediate savings to attitude in regards to accounting and site management costs. Attitude will also be freed from any legal issues or possible legal action from distribution contractors as they will be under the immediate direction and control of Mass Media Promotions and Distribution.

STAGE 1

Integration of the distribution routes

Route planning whereby MMPD will look at each distribution route and re-configure any current discrepancies therefore providing future accuracy and improved delivery times

Relief drivers on hand to ensure any non-arrival of sub-contractors or late deliveries is easily managed without any effect on the result of expected distribution times

Thru optimisation of current attitude distribution practices and the industry knowledge and experience of MMPD, all procedures will be examined and adjusted to ensure all areas have been identified and discussed.

Provision of transparent weekly reports to give attitude peace of mind and absolute accuracy in regards to any issues raised within distribution constraints.

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STAGE 2

Fine tuning of all current distribution processes, with any matters of concern being immediately discussed and rectified

The number one goal of this distribution model is to deliver substantial payroll and management savings and real time productivity improvements with the provision of immediate knowledge and experience when required.

Thru open discussion and transparent communication between attitude and MMPD, this model will prove to be a delivery system the envy of other publishers/suppliers in Australia.

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Service: Complete weekly distribution requirements for attitude:

Minimum Term: 12 months.

Commencement: 1st March 2008

Provision: Complete Distribution Requirements including shortages and re-delivery.

Amalgamation and route optimisation of current attitude distribution model

Terms: Current quotation is subject to standard MMPD Pty Ltd terms and applicable terms within this attitude tender. All prices are GST exclusive and are valid for 30 days from 10th January 2008.

MMPD would like to thank Mary-anne Agostino for the opportunity to discuss tender for this new distribution model.

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