Essay: Toll Group's Supply Chain Capabilities And Services Analysis.

1. Examine the knowledge-specific capabilities (includes concepts, principles, theories, methods and contemporary practices central to the supply chain and logistics profession).
2. Develop the problem solving capabilities in supply chain and logistics management.
3. Analyse the upstream and downstream supply chain structure.
4. Apply written skills and knowledge of supply chain and logistics management.

Toll Group Background

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. 

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 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.

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).

Supply Chain Structure

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.

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 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.

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 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.

Sourcing Material and Services

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 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 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.

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).

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. 

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. 

References

Chowdhry, S. & Kone, D., (2012). The business analysis of faecal sludge management: Emptying and transportation services in Africa and Asia. Report.Bill and Melinda Gates Foundation, Seattle, WA, USA.

Grant, D.B., (2012). Logistics management. Australia: Pearson Higher Ed.

Hugos, M.H., (2018). Essentials of supply chain management. USA: John Wiley & Sons.

Lammgård, C. & Andersson, D., (2014). Environmental considerations and trade-offs in purchasing of transportation services. Research in Transportation Business & Management, 10, 45-52.

Lin, J.R., Yang, T.H. & Chang, Y.C., (2013). A hub location inventory model for bicycle sharing system design: Formulation and solution. Computers & Industrial Engineering, 65(1), 77-86.

Lord, R.T., Lord, R.W., Myhrvold, N.P. & Tegreene, C.T., Elwha LLC, (2015). Methods, systems, and devices for providing transportation services. U.S. Patent Application 14/318,182.

Martens, K., Golub, A. & Robinson, G., (2012). A justice-theoretic approach to the distribution of transportation benefits: Implications for transportation planning practice in the United States. Transportation research part A: policy and practice, 46(4), 684-695.

Monczka, R.M., Handfield, R.B., Giunipero, L.C. & Patterson, J.L., (2015). Purchasing and supply chain management. USA: Cengage Learning.

Ngah, A.H., Zainuddin, Y. & Thurasamy, R., (2014). Barriers and enablers in adopting Halal transportation services: A study of Malaysian Halal Manufacturers. International Journal of Business and Management, 2(2), pp. 49.

Sarkis, J., (2012). A boundaries and flows perspective of green supply chain management. Supply chain management: an international journal, 17(2), 202-216.

SteadieSeifi, M., Dellaert, N.P., Nuijten, W., Van Woensel, T. & Raoufi, R., (2014). Multimodal freight transportation planning: A literature review. European journal of operational research, 233(1), 1-15.

Toll Group (2018). About us. Retrieved from: https://www.tollgroup.com/about

Visentini, M.S., Borenstein, D., Li, J.Q. & Mirchandani, P.B., (2014). Review of real-time vehicle schedule recovery methods in transportation services. Journal of Scheduling, 17(6), 541-567.

Vuchic, V., (2017). Transportation for livable cities. USA: Routledge.

Yu, Y., Chu, C., Chen, H. & Chu, F., (2012). Large scale stochastic inventory routing problems with split delivery and service level constraints. Annals of Operations Research, 197(1), 135-158.