Background of company (Total: 669/800)Description of the company (348)The Toll Group has been around for over 125 years, part of Japan Post, and they operate a comprehensive worldwide logistics network across 1200 places in over 50 countries. Consisting of around 40000 employees, they provide a diversified spectrum of logistics and transport solutions for road, air, sea and rail to assist their customers in meeting their global supply chain requirements to the best they can. Toll Group is a part of many industries, such as mining, healthcare, government and defence, automotives, and oil and gas. The company also offers relocation services for corporate sectors and government departments.
(Toll Holdings Limited, n.d.)Toll Group operates in five divisions, Global Express, Global Forwarding, Domestic Forwarding, Global Logistics and Resource and Government Logistics. Through Toll Priority, Toll IPEC and Toll Fast, the Global Express division offers express freight services overseas and in Australia for a range of cargo. They also offer recruitment solutions through its brand, Toll People. The Global Forwarding division offers a complete variety of advanced supply chain management services as well as international freight forwarding.
The main brands of the Domestic Forwarding division are Toll Express, Toll Intermodal, Toll NQX, Toll Tasmania, Toll New Zealand and Toll Shipping, which helps to provide domestic road, rail and sea freight within New Zealand and Australia. The Global Logistics division provides end-to-end supply chain solutions in the Asia-Pacific region, together with a variety of contract logistics services. Lastly, the Resources and Government Logistics division provides services to industries such as Oil and Gas, Mining and Resources and Government and Defence through their brands, Toll Remote Logistics and Toll Transitions, Toll Offshore Petroleum Services, Toll Liquids, Toll Energy and Marine Logistics and Toll Mining Services. (Ibis World, 2017)Services provided in Singapore are divided into five sectors, freight forwarding, offshore logistics, transportation, supply chain logistics and dangerous goods management. Toll’s comprehensive network and infrastructure allows allows them to easily move any type of cargo, such as dangerous goods, within Singapore and the world.
(Toll Holdings Limited, n.d.)For Toll Group’s organization chart, see Appendix A.
Systems and softwares used (222)Two main systems are used to operate daily processes in Toll Group’s Outbound Customer Service Department, which I have been attached to. They are SAP and Toll’s own Warehouse Management System (WMS), which allows both the customer service assistants and operations personnel to view and complete back to back processes. For example, After the customer service assistants have entered all the order data into WMS and printed the Master Issue Vouchers and Pickling Lists, the operations team would make use of information in both WMS and SAP to begin the picking and packing process. SAP is mostly used to create delivery numbers, confirm picking quantities and perform goods issues, while WMS is for entering of order data, performing order batching and batch picking and printing of documents. In order for data on both SAP and WMS to be matching, we simply have to download the order information and upload it onto WMS. One other software utilized by Toll is TOPS Pro (Maxload), where the customer service assistants are able to find out how many cartons can be arranged on each pallet. By entering the carton dimensions and weight, the system would generate a package design diagram that the operations team would use to stack cartons correctly on a pallet. Appendix B contains an example of a Maxload Diagram.
Relevant statistics relating to industry and company performance (99)Ranked 42 out of the top 2000 companies in Australia, Toll achieves most of its income from Road Freight Transport.In 2014, the company had earned a profit of $293.1million. Throughout the first quarter of 2017, the company had already generated $7,981,700,000 in revenues, including sales, with 19815 employees in Australia.(Ibis World, 2017) However, after its $6.5 billion acquisition by Japan Post in February 2016, earnings have seen a decrease, and the company is currently being pressured to improve their performance. (Prime Mover Magazine, 2017) Key challenges facing the logistics/supply chain industry (311/400)Global Perspective: Increasing order capacity (147)With online shopping becoming more of a trend nowadays, logistics services are required almost everywhere in the world. This leads to a large increase in order capacities.
With increased capacities, logistics companies not only have to find new and improved to deliver goods to their customers hassle-free, costs have also become a problem. For example, increased capacities equates to more deliveries being made worldwide everyday. This would lead to a shortage of drivers, and increased costs due to rising fuel prices, as well as increased surcharges on top of freight rates. This would cause overall transportation costs to increase drastically. As seen in Appendix C, transportation costs are one of the most common challenges faced by logistics companies.
Many companies, such as Toll Logistics, has been facing the challenge of being understaffed everyday, which causes delayed deliveries as well. (Logistics Management , 2017)Department Perspective: Demanding customer needs and expectations (164)Customers requests have become increasingly demanding, especially when express shipping has been introduced to the world. Before the logistics industry became more prominent, customers were usually fine with ordering a product and waiting for long periods of time before their package arrives. Nowadays, customers not only want their packages delivered fast, they also expect for their order to be entirely hassle-free. Customer impatience has caused logistics companies to come up with new ways to allow maximised customer satisfaction rates, such as visibility from the point of ordering till the package is delivered. For example, real-time order tracking has been made available by most companies, even McDelivery. This allows customers to find out where their package is at, anytime of the day.
While some other ways of maximising customer satisfaction may be costly, a quarter of customers have been found to be willing to pay for services such as same day or instant deliveries. (International delivery solutions, 2016)Recent developments in the logistics/supply chain sectors(327/400)Article: https://cointelegraph.com/news/blockchain-in-logistics-industry-will-improve-transparency-enhance-process-accountabilityBlockchain is one of the most recent technological advancements in the logistics industry, which was developed to revamp transparency and accountability across every step during all logistics processes. One simple, everyday analogy of blockchain technology being utilized is the Google Docs software, where many parties are able to access and edit a document at the same time. The original way of sharing documents, where only one party can edit the document at a time before sharing it back and forth between the other parties, which poses a risk of miscommunication and losing track of the different versions. (William Mougayar, 2016) Blockchain technology allows full visibility of the entire supply chain process, by allowing both the customer and company to have access to a single version of the transaction history.
Current technology typically does not allow both sides access to a single version of a transaction, instead causing them to have separate databases where they constantly have to update every step of the way or end up with missing information. (Iyke Aru, 2018)With blockchain technology, some processes here at Toll Logistics have been greatly enhanced. Just recently, Microsoft Office Online had been introduced, and replaced our ShareDrive. The ShareDrive only allowed one user to edit the document, while others could only access a ‘Read-Only’ file. This was a huge hassle for most users, as most files were used by multiple users, but they always had to wait for the current user to finish updating their part before being able to open the file. The new files in Microsoft Office allows users from the customer service department and operations team to simultaneously view and edit the file, which has resulted in better efficiency throughout the company.
Users are also allowed access to version histories, which shows the parts that are edited by each party. Whenever there are errors in the files, every user is able to find out the person who made the error easily, and get them to correct it.