Analyzing the Supply Chain Management of Toll Group

This report analyzes the supply chain management of Toll Group, a logistics and transportation company. It covers the company background, supply chain structure, sourcing material and services, transportation and warehousing system, inventory system, and demand management. The report emphasizes the company's products and services, distribution system, transportation, inventory, and demand management.

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Supply Chain Management

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Table of Contents
Introduction................................................................................................................................3
Toll Group Background.............................................................................................................4
Supply Chain Structure..............................................................................................................5
Sourcing Material and Services.................................................................................................6
Transportation and Warehousing System..................................................................................7
Inventory System and Demand Management..........................................................................10
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
The main aim of this report is to analyze the capability and supply chain activities of the Toll
Group. This report focuses on the supply chain structure of the company for the effective
supply. Meanwhile, this report will identify the products and services, which are
manufactured by the Tool Group. In addition, the report emphasizes the existing
transportation and warehouse system adopted by the company. Overall, this report mainly
focuses the company products and service, distribution system, transportation, inventory and
demand management.

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Toll Group Background
The Toll group started its business as a horse and cart coal hauling business. It was started in
1888. The founder of this business was Albert Toll. This business was purchased by National
minerals in the year 1959. The Toll group is headquartered in Melbourne. This organisation is
involved in the business practices of transportation and logistics. The parent company of this
organisation is Japan Post Holdings. Total numbers of employees in this organisation are
40000. The three principal business of this organisation is the Global Express service, Global
logistics service and global forwarding. The company is operation its business operations
across the world (Toll Group, 2018). The company is providing its products and services to
the customers on the same day of order received. This company works as a mediator between
the two that is the customer and another company.
This company also provides warehousing services for the manufacturing organizations so that
effective production can be accomplished by the management. Remote and resource logistics
are a service in which effective solutions are provided to emergency and humanitarian
situation by this organisation. The company is providing remote and resources logistics
services to a wide range of industries. Offshore and onshore logistics services are also
provided by this organisation. This service includes port and Maritime Services.
Supply chain consultancy is the type of service in which the consultancy and audit services
are provided by an organisation to different industries. Transport organisation, supply chain
planning and management, site location and layout Optimisation are the various services that
are come under the consultation of this organisation. Effective distribution is accomplished
by this organisation so that products and services can be reached on time. For this, on time
shipping is accomplished by Tool Group to deliver the products on time to the required
entity. The airport Management Service is also practised by this organisation. The services

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are also provided to the passengers (Yu, et. al., 2012). Specialised helicopter services are also
coming under the category of airport and Aviation Services of this organisation.
Supply Chain Structure
The organization has effective supply chain capabilities to attain the competitive advantages
in the associated industry. There are many types of functions that can be accomplished by the
management with the help of supply chain system. Cross Docking and import Trans load can
be accomplished by this organisation to provide affecting supply chain management. This
organisation is having a good quality control functions so that effective distribution can be
provided. This organisation is providing effective warehousing and distribution facilities so
that effective supply of the resources can be possible to the manufacturing entities
(Chowdhry & Kone, 2012). These services are helpful in accomplishing the production in the
specified time. The supply chain management includes the high-speed serration system that
can tackle the critical situation at the time of distribution of the goods. Unit replacement and
unit fulfilment are the functions that are included in the supply chain management. This
organisation is having a strong network that utilizes RF Technology. The online supply of
goods and services can be done with the help of mobile phone application and website of an
organization. It is a tracking system that is provided by the organisation to satisfy the
customers in each prospect. Domestic consolidation program is also the part of supply chain
management of this organisation. Tool Group is operating its business operations in 50
countries so that the domestic and intercontinental supply of goods and services can be done
by the company in easy and effective manner. There are different types of value-added
services that are provided by this organisation at both of the point source and the destination
of the customer. In this way, the supply chain management of Tool Group is functioning in
effective manner (Lord, et al., 2015).

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The organization is providing end-to-end management practices with an effective supply
chain system to attract new customers and visit again and again the existing customers.
Effective Information sharing is accomplished by this organisation to the customer from time
to time so that customer is having a full transparency on the product that will be delivered by
organisation. Transparency is helpful for an organization in satisfying the customers and
retain them for long-term. The supply chain of this organisation is streamlining the supply
chain (Visentini, et. al., 2014). In North America, this organisation is having a wide network
that starts from Atlanta to San Francisco. Many sites are included in this like Chicago, Dallas,
the city of industry, Boston, Houston, Los Angeles, Miami, Philadelphia and it used to supply
the goods and products to Canada. Beside this the organization also has its presence in other
countries. The huge presence is enabling the company to deliver the products and services in
effective manner in different parts of the world.
Sourcing Material and Services
This organisation works on the formula of the pick, pack and delivery. The formula is very
useful in providing goods to be delivered on time. The cost-effective, accurate and reliable
pick pack and delivery are provided to the customer. The orders are shipped quickly and
accurately. With the help of tracking information, the customer can track where the goods
had reached. The effective inventory management may be possible with the help of this
service that provides the complete visibility on the process which is followed by toll group.
There are broad ranges of the customers which are involved in taking the services of
Sourcing material. The customers from the automotive industry, construction industry,
manufacturing industry and other sectors also take the services from the toll group
(Lammgård & Andersson, 2014).
Various types of processes are included in sourcing of material and services. The order
management can be accomplished under this service. Delivery and warehousing services of

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the product to the end serviceman is provided by this organisation. The customisation of
knitting and bending is for the goods that have to be delivered by the organization. After that
the products are reached to the product assembly for proper management of inventory. Toll
group is having a multimodal network that helps in cost reduction in the delivery process.
The online tracking system is very useful for the customers that help the customer to track the
product (Ngah, et. al., 2014). Warehousing solution included different type of products
whether it is dangerous products also. Dispensary reporting is also included in this service in
which short, over and damaged processing is done. Return logistics services are also included
in this process.
Based on this analyzes it is analyzed that there is a need for the development of the return
Logistic services, which are included in its services. It is very necessary for the organisation
to refine the return logistics service so that there can be more satisfaction in the customer
regarding the return products.
Transportation and Warehousing System
Toll group is using different logistic services such as Airways, Railways, sea routes and Road
to manage the supply chain system in better way and deliver the services in effective manner.
The organisation used these ways of logistic to provide excellent transport service. Its service
can be availed by the customer with the help of the online platform. With the help these
transportation services, a good transport model can be presented to the customers with high
efficiency. The customers that are having Complex supply chain are supported with the help
of complex transport models that are developed by this organisation. There is flexibility
presented for the customer in the service transport model to satisfy them in effective manner.
This service model is designed by this organisation in such so that transport can cost efficient
also. It is the cloud-based transport model that consists of different information about the

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good that is transported with the help of this service (Monczka, 2015). This information can
be accessed by the user or the customer in easy manner.
Depending on the business need of the particular customer planning the load can be
customised with the help of MTS or My transport service solution. A single invoice can be
received by the customer for the different services that are availed by the customer. The
customer is having an opportunity of availing Best service provider. Once the specific
requirements are fulfilled by the customer then the particular customer get the order
requirements, delivery time trains, Fright weights, locations (Grant, 2012).
The use of MTS can be accomplished by a large organisation to the small organisation. The
companies having Complex transport requirement can avail this offer to easily port and
deport the goods that are necessary to supply at the particular place. The customers that are
seeking the goods to be supplied from home to home across the city and countries can also be
possible with the help of my transport service. Therefore it can be said that there is no limit
for the user to avail the services of this organisation. MTS helps a lot in the different
processes of transportation to the customers in the effective and efficient way to the customer
(Sarkis, 2012). This service is completely scalable.
There are great benefits to use this service. For the large and medium operations, scalability
of the solutions can be accomplished under the service. This service is having integration
with ERP and WS system. The operation can be very easily functioning with the help of ERP
system in an organisation. If the Transportation system of this organisation is connected with
the ERP system that organisation to which this organisation is providing transportation
service will be very beneficial. In such situation supply in the market can be possible
according to the demand in the market. The need of the customers can be analysed effectively
and efficiently. According to the demand and the transportation services are provided to the
organisation by toll group (Hugos, 2018). In this situation, the end to end plan is designed by

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this organisation. The toll group facilities the transportation according to the needs in the
market for the goods of that company to which toll group is serving.
The optimisation of the transportation is accomplished in such a way so that there can be the
accomplishment of cost reduction in the process of providing goods in the market with the
help of transportation by this organisation. Fright can be located with the help of my transport
service. Fright is made according to business rules of the customer of the Toll group.
Therefore the cost reduction takes place according to the business rules of the customer
facilitating the customer in implementing the supply chain according to the need of the
company to which toll group is serving.
The warehousing system of this organisation is having the multi-user facilities. There are
three types of services like long term, short term and medium term warehousing services by
this organisation. The purpose of dividing services of warehousing into 3 parts is to make the
services cost effective for the customer as well as for the organisation. If the particular
company is having seasonal operations of supply then shared warehousing services offered
by this organisation to such type of customers. Additional space resources can be provided to
the companies are the customer of toll group if the business requirement of the customer
changes. It is also helpful in inventory allocation. The warehousing of this organisation is
suitable for the dangerous goods, materials that require controllable temperature storage can
be stored in the warehouse of the Toll group. Warehousing is also people for the food
products. Other types of goods can also be stored in the warehousing provided by the toll
group. Short term and long-term storage options are provided to the customers according to
the business need of the customer. Capital solution software is used in the warehousing
system of Toll group so that inventory Optimisation tools can analyse the demand and need
of the market and according to this warehousing can be provided to the customer of Toll

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group. The warehousing system is automated storage that can be easily retrieved therefore
this system is a retrieval system (Martens, et. al., 2012).
There can be a different type of improvements that can be accomplished in the existing
service like the network can be expanded more. This organisation is present in 50 countries
so there is a need to expand the sites in 50 countries. It is necessary because the system gets
to slow down because of the non-presence of the site in some of the area in which this
organisation is present in the country but not in that particular area. As far as other systems
are concerned, other systems are very regularised and refined. In the warehouse system, real
trying transaction system should be promoted in those sites where it is not present. This will
be helpful in providing more effective warehousing system with more transparent inventory.
Inventory System and Demand Management
Various services are included in inventory management of toll group. The storage of the
product of which the delivery is being accomplished is done. The particular product of the
good is located with the batch. There are different types of the batch in which the goods are
divided so that inventory monitor can be possible (SteadieSeifi, et. al., 2014). At the same
time, the order is managed with the help of ERP. If the company is a customer of the toll
group then there can be three options in which the inventory management for cycle count is
done. This includes daily, monthly and weekly cycle counts. There is also a presence of wall
to wall full stock count option is available.
The demand management is accomplished for three types of processes that come with the
transportation of product after the order that is given to the toll group by the customer.
Hub and spoke
In this process, the product is received and is stored by the toll group. It is already discussed
that the products are divided into the batch. In this products are combined so that shipment

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can be easy and the product can be reached to the destination efficiently and quickly (Vuchic,
2017).
Consolidation
There are smaller consignments received by the toll group that are combined into the larger
shipments and deliver to the destination.
Deconsolidation
There can be the situation in which the larger shipments are received by the toll group. In this
situation, the load is broken into the smaller load (Lin, et. al., 2013). In this way,
transportation and delivery of the product are a completely.
Consolidation and deconsolidation are the processes which are less cost-effective as
compared to the hub and spoke. Therefore it is very necessary to make these processes cost-
efficient and cost-effective. This will lead to attachment in the customers of this organisation.
Effective management of the damaged goods should also be done by this organisation so that
there will be less conflict between the customer and the toll group. It is very necessary
because stock damage results in additional handling.

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Conclusion
It can be concluded from the assessment that the supply chain structure of this organisation is
having a good capability. The functions are totally controllable by this organisation. The
production can be possible in the specific time for the customer company of the toll group
with the help of supply chain. Sourcing of the material is the necessity of the customer that is
fulfilled by this organisation in an efficient manner. Effective labelling and ticketing on the
products is the effective operational function that facilitates the service of transportation.
Return logistics process should be improved and more transparent. The MTS service of this
organisation is serving a single customer to a big venture. The scalable part of this service is
helpful for the customers also. Inventory and demand management is helpful in providing the
transportation of the goods within the decided time. The warehousing is also helpful for the
companies that are involved in the different manufacturing process. The overall transport
facility of this organisation is remarkable.

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