Decisions On Future Roles Of Fencepost And Rd1.Com

Friday 12 April 2002

Decisions on the future roles of websites RD1.COM and Fencepost.com have been made, saving money and enabling both to focus on their core competencies to achieve greater profitability.

Fencepost.com is a stand-alone entity while RD1.COM is the website of Rural Supply Company. Both Fencepost.com and Rural Supply Company are part of Fonterra Enterprises.

Fonterra Enterprises Managing Director Alexander Töldte said that, from 13 May, the two sites will co-operate and not duplicate services.

He said Fencepost.com will provide information and productivity tools, including access to milk data and will further develop rural information services.

RD1.COM will retain industry-leading e-commerce offerings, including an online store marketing over 8,000 farming items. Fencepost's Town & Country Agri Centre account holders can now shop online with RD1 by linking their accounts, and instructions are available on RD1.COM The sites will develop navigation links between each other.

"There is clear duplication between these sites and that will now be removed," he said. "It will generate immediate savings of $200,000 a year with significantly more to follow. This will contribute to the $120 million in cost savings being sought in Fonterra's first full year of operation, as promised in the Business Case for last year's dairy industry merger."

Mr Töldte said the decision that the two sites should focus on their core competencies would also enable them to contribute to the strategy gains promised by the Business Case for the merger.

"Both sites must increase their contribution to payout and to increasing the value of the Fair Value share."

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