Challenges in the newspaper industry are twofold: declining print subscriptions and rising delivery costs. This has forced publishers to rethink their traditional logistics model to squeeze more profits out of it.
Schweiger manages all media and mail activities within the Germany-based Fiege Group. Founded in 2000, Boxit is a joint venture between Fiege and Frankfurter Allgemeine Zeitung. With more than 100 million deliveries per year, serving over 100 titles (including journals and catalogues), Boxit reaches more than 70 percent of German households.
Schweiger believes that within these challenges lies significant opportunities. Transformation of last mile of newspaper delivery could turn it into a profitable business.
The key lies in embracing change, investing strategically, and fostering an entrepreneurial spirit, he said.
“To be successful, companies must recognise market shifts early, build strong brand loyalty with innovation, and invest in both technology and expansion,” Schweiger said during a webinar hosted by the World Printers Forum.
Those who underestimate the speed of change and ignore customer preferences will eventually fail, he added.
Boxit uses robots for efficient pick-and-place operations.
Embracing the role of AI in logistics
For instance, the rise of Amazon Prime and the increasing use of AI in logistics shows how the efficiency of e-commerce delivery has improved in recent years.
Fiege is also embracing these changes. They’re investing heavily in warehouse automation, utilising robots for picking and placing operations.
For advanced packaging, machines from CMC, Sparck, and Beck are used to optimise material usage and streamline the process.
These machines can identify the right size and amount of packaging material required for an item, and automatically create and fold the right box.
“We are working with our engineering teams, partners and customers on solutions to tackle problems of today, in turn increasing efficiency and being a valuable partner. In the end, our mission is to create value for our customers,” Schweiger said.
‘Last mile delivery model is lagging’
In Germany, the last mile delivery model is outdated in some areas.
“We do not keep up the pace with the change we see in the market, and I also don’t think this is matching the preferences of the customers,” he said.
Labour shortages and poorly integrated systems are some of the other challenges publishers face. Some publishers resort to cost-cutting measures such as optimising routes and potentially cutting off less profitable households.
“This is not enough. A more fundamental shift is necessary,” Schweiger said.
Some companies in Germany are investing in professionalism, optimised business structure and sustainability (emission-free delivery vehicles). Some have invested in new technologies such as apps that show perfect route maps, update live route information, and more to improve the quality and time of delivery.
“These companies demonstrate that even against major players like DHL, it’s possible to create unique selling propositions and thrive,” Schweiger said.
Leveraging existing distribution network is key
Three key elements are necessary for shaping the future of last-mile delivery: entrepreneurship, investment and courage.
Logistics departments should be seen as profit centres and publishers must invest in their infrastructure and embrace new business models and revenue streams, Schweiger said.
Leveraging existing delivery networks to transport other products is a promising idea, he said.
In Germany, there are logistics companies that deliver everything from frozen pizza to parcels. However, there are challenges when it comes to integrating parcel delivery with early-morning newspaper routes.
“But it’s important to explore these opportunities,” he said. “The parcel industry won’t shrink; it will grow. It is time to think about it as an opportunity window.”
Schweiger suggests starting with products similar to newspapers, such as magazines and catalogues, before expanding into parcel delivery and fulfilment services.
“This allows companies to build experience, optimise workflows, and convince their workforce of the long-term benefits,” he said.
Sustainability will become a key differentiator
Sustainability, especially carbon footprint, is one of the key areas that publishers must focus on today.
This will become a key differentiator in the future, especially as regulations tighten and consumer preferences shift, according to Schweiger.
Boxit already has a strong foundation in sustainable delivery, with a large fleet of zero-emission vehicles, including a large fleet of bicycles.
“But we need to do a better job of marketing this advantage,” he said.
“I believe that, if we consider our emissions as part of the entire network of publishing last-mile logistics in Germany, we are better than the best logistics company in the country,” he concluded.
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