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Supply Chain Management




The main aim of this report is to analyse 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 Toll Group. On the other hand, this report emphasizes the existing transportation and warehouse system of the company.  Overall, this report mainly focuses the company products and service, distribution system, transportation, inventory and demand management.


Toll Group Background


The Toll group started as a business of 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. A total number of 1200 sites are present of this organisation in total 50 countries (Toll Group, 2018). With the help of Express service, the goods of the customer are provided on the same day to the customer. This company works as a mediator between the two that is the customer and another company. The customer purchases the product from one company and the Toll group takes that product from that company and provide it to the customer. The Fright service of this organisation includes delivering a parcel of the dangerous goods and moving commodities.

This company also provides warehousing services and manufacturing facilities so that effective production can be accomplished. Remote and resource logistics are a service in which effective solutions are provided to emergency and humanitarian situation by this organisation. Remote and resources logistics are provided by this organisation to the companies. These companies are the customers of the Toll Group. 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 consultation and audit service is provided by this organisation to those companies that are involved in the same business. 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 can reach on time to the receiver. For this on time shipping is accomplished by this organisation so that there cannot be any delay from the company side. The airport Management Service is also practised by this organisation. The services 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


This organisation is having now use supply chain capability. There are many types of functions that can be accomplished with the help of supply chain for this organisation. Cross Docking and import Trans load can be accomplished by this organisation for providing affecting supply chain management. This organisation is having a good quality control functions so that effective distribution can be provided. This organisation used to provide warehousing and distribution so that effective supply of the resources can be possible to the manufacturing facilities (Chowdhry & Kone, 2012). This can be helpful in accomplishing the production in the specified time. The supply chain management includes the high-speed sortation system that can tackle the critical situation that used to arrive at the time of distribution of the goods. Unit replacement and unit fulfilment are the functions that are included in the supply chain management buy this organisation. This organisation is having the strong network that utilizes RF Technology. The custom of the different countries is also supplied within the legal limits by this organisation. The online taking of the goods and the products that are supplied by this organisation can be done with the help of mobile phone application and website of this organisation. It is a tracking system that is provided by this organisation so that the customer cannot be dissatisfied with this organisation. Domestic consolidation program is also the part of supply chain management of this organisation. This organisation is present in 50 countries so inter countries and intercontinental supply of goods and the products can be done by this organisation in the 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 to the customer of this organisation. In this way, the supply chain management is functioning efficiently for this organisation (Lord, et. al., 2015).

This organisation is involved in the practice of end-to-end management means the management is provided for the customers in such a way that the customer will not have to wait for the product to be delivered soon. 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 this organisation to the customer. 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 the 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. In the different part of the world also this organisation is having a huge presence. Due to such a huge presence, this organisation is able to provide delivery easily 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 can be possible with the help of this service that provides the complete visibility on the process which is followed along the way by the 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 type of processes is included in the Sourcing material and services. The order management can be accomplished under this service. The Toll group used to label the product and then ticketing of the product is accomplished. Delivery and warehousing of the product in the end to end serviceman is provided by this organisation. The customisation of knitting and bending is then thereafter for the goods that have to be delivered. The goods then reached to the product assembly. Management of the inventory and the stock is accomplished. 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.

There is the need for the development of the return Logistic services which are included in this service. It is very necessary for this 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 used to provide the services of supplying goods to the different parts of the world with the help of Airways, Railways, sea routes and Road. This organisation used to provide my transport service. This service can be availed by the customer with the help of the online platform. With the help of this service, 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 present for the customer in the service transport model of this organisation. This model of service 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 good that is transported with the help of this service (Monczka, 2015). This information can be accessed by the user or the customer. 

Depending on the business need of the particular customer planning and of 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 the Toll group (Hugos, 2018). In this situation, the end to end plan is designed by 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 the 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 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 can be easy and the product can be reached to the destination efficiently and quickly (Vuchic, 2017).


There are smaller consignments received by the Toll group that are combined into the larger shipments and deliver to the destination.


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.




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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