Toll Group (Toll) is a diversified logistics provider headquartered in Melbourne, Australia. Toll has been operating in logistics since 1888 and was subject to a management buyout in 1986 which subsequently led to an ASX listing in 1993. The organisation currently has in excess of 45,000 people across 1,200 sites in 50 countries (Toll Holdings, 2013) The business has executed a long term strategy of growth through acquisition and now generates over $8.7 billion in revenue per annum with six key operating divisions (McInerney, 2013):
- Toll Global Resources
- Toll Global Logistics
- Toll Global Forwarding
- Toll Global Express
- Toll Domestic Forwarding
- Toll Specialised and Domestic Freight
Toll’s primary mission is stated as “to harness our significant resources, know-how and passion to deliver optimal solutions for our customers” (McInernay, 2013). The company focuses on achieving this mission through providing global supply chain capabilities through their companies that are integrated to form a sustainable competitive advantage. This complex network of capabilities is then integrated into their customers’ organisations which creates value for the customer and also for Toll shareholders. In achieving this mission, the organisation hopes to be recognised as Asia Pacific’s leading logistics provider.
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Recently, Toll Global Logistics launched its Wind Farm / Heavy Haulage Business in response to existing customers who are running major construction projects, such as QGC, Fluor, Leighton, ConocoPhillips, Shell and Santos and have a requirement over dimensional freight services. This business is in its infancy, though focuses on over dimensional freight tasks which are satisfied through the use of specially engineered equipment such as six axle extendable platform trailers.
The Toll Road Freight Business, up until this time, has been built around “in gauge freight” with its Contract
Logistics Services undertaking 2.325m deliveries per annum in Australia alone (McInernay, 2012) This style of freight offers the lowest form of operational risk to the organisation as it is process driven through standard transport equipment which requires little specialist knowledge.
In order to operate in the over dimensional market, Toll will need to make changes to its existing Operations
Process. The existing process will flow direct from allocating assets in the Operations Department, through to the vehicle operator, who then completes the on road task. Over dimensional freight may require Operations to obtain route scopes, single trip permits, allowing vehicles road access, pilots to warn other road users of the vehicles presence and in extreme cases, police escorts which are not required for Tolls regular freight. As such, additional support services will be required in Operations and On Road and processes will need to be amended to ensure correct workflow. Without the correct execution of the new process, the freight will not be able to legally travel, which will have a great impact on customer satisfaction and revenue through reduced asset utilisation.
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Using the CMM, the process changes that need to be undertaken in Toll’s Global Logistics division to move from an immature, to a mature understanding of business processes (Harmon, 2007) for their heavy and oversize transport which can be defined in the following five stages:
1. In the initial stages of operation with over dimensional freight, Toll will need to recruit experts with significant experience dealing with this type of freight. Without this experience, Toll will be at an unconsciously incompetent level and will not be able to perform the tasks as a business in a safe and