Byrne notes investment of $1.5 billion to support fleet and equipment revamp
As the year comes to an end Toll highlights some of the changes it has made over the past 12 months and outlines its “transformation” plans for the future.
In the company’s December-January edition of Toll Today, MD Michael Byrne says the plan is to transform the business into a “highly focused logistics company with unmatched global scale and strength in technology and assets”.
With this aim, the company initiated a global transformation program in January 2017 that saw a “rapid and deep delivery of reform across the business”.
The first step of its three-year turnaround plan was to get the business “match-fit” and return to sustainable growth, with the following three years dedicated to driving growth, Toll states.
Currently, it is making major investment in technology and fleet, and improving its handling capacity to tackle increased freight volumes.
“Having undertaken a thorough, no-stone-unturned review of every major aspect of our company, it is clear that Toll has world-class assets and people, with tremendous scale and breadth, that needs to run better,” Byrne says.
“We need to keep raising the bar on operational excellence and hold each other accountable to deliver.”
Fleet replacement
Toll is currently investing $1.5 billion in fleet and equipment under its six-year global strategic procurement replacement program.
This will include a planned roll out of 388 new prime movers, 359 new trailers, 229 new rigid trucks, 180 new light commercial vehicles and 557 new forklifts.
Some of the “key features” within its investment plan include:
- latest electronic braking system (EBS) technology
- three points of contact – preventing slips, trips and falls
- driver fatigue detector
- side underrun protection for vehicles
- side guard and blind spot assists
- seat belt and park brake alarms
- lane assist departure warning
- active cruise control
- minimum Euro 5 emission standard application
- aerodynamic design and low rolling resistant tyres.
The company makes a note of its long association with Daimler through its reliance on Mercedes-Benz trucks and vans.
The partnership is expected to continue under Toll’s ongoing five-year heavy vehicle replacement program, which aims to ensure its fleet has the “latest safety, innovation, ergonomics and fatigue management, systems, as well as improved fuel efficiency and reduction in CO2 emissions”.
It is also maximising the capacity of its new trailers.
“Through better design and the use of the national Performance-Based Standards Scheme, we have increased the capacity of our trailers meaning we can move more goods for our customers, with fewer trucks on the road,” Toll says.
Global end to end services
To keep up with an ever-increasing demand for last-mile delivery thanks to a booming e-commerce market, Toll plans to increase efficiencies in the supply chain and improve last-mile delivery services.
It cites the example of a Mercedes-Benz Vans-driven pilot that will connect an all-electric ‘vision van’ with all participants in the supply chain – from the distribution centre to the recipient.
The system aims to reduce delivery time and boost efficiency by 50 per cent on last mile deliveries.
In another pilot, Mercedes-Benz Vans, US drone systems developer Matternet and Swiss online marketplace Siroop are conducting a trial to test an efficient van and drone-based system for on-demand delivery of e-commerce goods.
A merchant loads the parcel on the drone, which flies to one of the two Mercedes-Benz Vito vans equipped with precision landing technology.
The van is used as a “landing platform” in urban areas, with the driver taking possession of the parcel and delivering it to the end customer.
Toll says such systems “could help make the future transportation of goods and passengers even more efficient, environmentally friendly and open up new business opportunities and economic benefits for customers”.
Senior category manager procurement Bernie Dalton says Toll has a long-standing relationship with Mercedes-Benz Vans and the company will be “looking keenly at developing opportunities together in this space”.
“Both Toll and Mercedes-Benz Vans have a shared vision of the future that puts safety and the environment first while moving forward to increase efficiency in the supply chain,” Dalton says.