03
April
2006
|
00:00
Europe/Amsterdam

TMG and PCM to examine possible partnership regarding distribution

Telegraaf Media Groep N.V. (TMG) and PCM Uitgevers B.V. (PCM) are going to investigate the possibilities of working together in the area of distribution activities. Based on the results of this investigation, the two companies aim to come to a decision this fall about the desirability and type and scope of the intended cooperation between DistriQ and PCM Distributiebedrijf. These are the subsidiaries of TMG and PCM, respectively, which are responsible for the distribution activities of both publishing companies.

 
One of the objectives of the proposed partnership is the long-term implementation and securing of high-quality distribution of printed media at reasonable costs.
 
Ad Swartjes, CEO of TMG, had the following to say: “The price level of printed media must be structurally decreased, and distribution costs are a significant part of this. It had previously been indicated that TMG is considering forms of cooperation or partial outsourcing of facilities-related activities at the corporate level. The idea behind the possibility of working together with PCM is to create an increase in scale in order to better and more cost-effectively utilize the companies’ combined capacities. I am wholly confident that the results of the investigation will confirm this idea.”
 
Theo Bouwman, chairman of the Executive Board of PCM Uitgevers, expressed his opinion as well: “Cooperation in the distribution area offers newspaper publishers the best chances of retaining their current supply model. Integration of the two distribution structures contributes to cost control in the long run. The economic need is evident, and from the results of the imminent investigation it will undoubtedly become clear that cooperation in distribution is necessary.”