UK publisher switches to 3PL in £1.3 million restructuring programme

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UK publisher of car and motorcycle manuals, Haynes, is closing its Somerset distribution centre, in Sparkford, to appoint a 3PL to handle its logistics operations, in a restructuring programme that will cost around £1.3 million.

The company previously managed everything, from the origination to the distribution of its products, but after recently reviewing its operations, Haynes said its Sparkford site no longer meets the requirements of a modern information publishing business.

“The book distribution market has changed significantly from when the business first started and the investment that would be needed to upgrade the UK facility for the requirements of a modern day logistics operation would far outweigh the future benefit to the business,” said chief executive officer, Eric Oakley.

“The board has therefore concluded that it is no longer commercially feasible to maintain a UK distribution facility, and the process of transferring this part of the business to a third party logistics provider will begin shortly.”

Haynes is now expecting to pay one-off costs of £1.3 million, which it says will primarily relate to employee and author contract exit.

Although this will have a negative impact on its financial performance in the current year, the company aims to make cost savings of £500,000 in 2014/15, and £700,000 in 2015/16.

“I am confident that with the actions we have taken the UK element of the UK & European business will return to profit,” added Oakley.

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