NZ Post to shutter Contract Logistics after buying half of TMG's Supply Chain Solutions

NZ Post to shutter Contract Logistics after buying half of TMG's Supply Chain Solutions

New partnership prompted by burgeoning e-commerce market opportunities.

Credit: Supplied

NZ Post has acquired a half share of New Zealand third- and-fourth-party logistics operation Supply Chain Solutions (SCS) to provide end-to-end service to e-commerce customers.

As a result it will shutter its own third-party logistics (3PL) operation, Contract Logistics, by 30 June next year.

SCS, which is part of The Magnitude Group, will remain a standalone business, run by its founder Brad Lindsay and its existing management team, NZ Post said today.

“Supply Chain Solutions is a strong investment for NZ Post, providing market leading e-commerce fulfilment services to businesses operating domestically and with import and export operations – this includes providing warehousing, picking, packing and shipping solutions for customers,” said Norbert Bojarski, NZ Post's executive general manager investments and ventures.

“E-commerce is the future for NZ Post, and providing end-to-end logistics and delivery to support e-commerce businesses to grow makes sense for us."

Lindsay said it was important that SCS continued to be New Zealand owned.

"Like NZ Post, we are deeply customer centric, our customers exist at the centre of everything we do," he said. "Between us, we are looking forward to supporting local e-commerce businesses to succeed.”

SCS was also investing in new "state-of-the-art" warehousing and automation, NZ Post said.

SCS develops its own warehouse management system and portal with in-house developers coding and programming tailored solutions and also offers automated invoicing based on analytics.

According to its website, the company partners with e-commerce platform CIN7, N2 cloud-based ERP by First Software and Propella ERP.

NZ Post’s latest e-commerce research showed New Zealanders spent more than $5.8 billion online last year, an increase of 25 per cent on the year before. 

NZ Post was investing $170 million over the next ten years in parcel processing infrastructure. 

SCS was launched in 2003.

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Tags nz postSupply Chain solutionsSCSContract Logistics



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