Jim Pattison Group Consolidates Coast to Coast's Back Office
Functions outsourced to company that handles Comag's back office operation.
When the Jim Pattison Group, owners of the largest wholesaler group in North America, first became a co-owner of the Comag Marketing Group, one of Americaâ€™s four major national distributors, benefits that were mentioned included â€średucing redundancies.â€ť I didnâ€™t have a clue what that meant, unless it was a special code for triggering layoffs.
Last week I got an announcement from Glenn Morgan, President of Coast to Coast Newsstand Services. Coast to Coast isnâ€™t on the radar of a lot of U.S. publishers, but it is a major Canadian national distributor. Also, its ownership structure has some things in common with Comagâ€™s. Namely, the Jim Pattison Group.
Coast to Coast announced that itâ€™s going to outsource its billing, collection, print order and galley prep, and other back office functions to Genera, the Pattison- and Hudson News-owned company that does Comagâ€™s back office.
Coast to Coast is also contracting with Comag for their North American field work. Some Coast to Coast field reps will join the combined team.
So this is a step in the reduction of redundancies, and it makes sense to me. Iâ€™m not a fan of consolidation for consolidationâ€™s sakeâ€”or, in fact, consolidation at all, necessarilyâ€”but believe me, I am a fervent convert to taking costs out of a wildly expensive newsstand distribution system.
How will this partnership affect the relationship between Comag and Coast to Coast? Will the two companies grow ever closer, with C2C eventually acting as Comagâ€™s Canada arm? Will the savings implied by the reduction of redundancies find its way back to publisher clients? Will all this vertical integration give Comag/Coast to Coast an edge over the other national distributors?
I donâ€™t really knowâ€”I just read the press release, and am passing it along to you. But as soon as I have inside knowledgeâ€”at least the kind inside knowledge that a blogger is allowed to pass onâ€”I will share that knowledge with you.
-- Linda Ruth is Principal of Publisher Single Copy Sales Services. Her book of case studies, "How to Market Your Magazine on the Newsstand," is available at BookDojo.com and at Amazon.
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