Linfox Logistics Transport Network models

Robert Robinson 06 June 2013 CONTENTS

• Dedicated fleet networks • Roaming fleet networks • Complex constraints • Other scenarios • Unique projects

1 Linfox

• Linfox Logistics provides sophisticated supply chain solutions to many leading companies in 10 countries including , , , Philippines, , , Singapore, , , China and .

• Linfox has grown from humble beginnings to become the largest privately owned logistics company in Australia.

• Linfox Logistics business operates more than 3.8 million square metres of warehousing and nearly 5,000 vehicles across 10 countries.

• More than 19,200 people deliver sophisticated supply chain services to a wide range of leading business names.

• Across the Asia Pacific region, Linfox Logistics provides logistics services to the world’s largest natural resources company, the world's two largest consumer goods companies and one of the world's largest retailers.

2 3 Dedicated Fleet network

• Vehicles are assigned to a home location – typically a Distribution Centre (DC) • Vehicles can only perform loads that are from its home DC

• Assign each order a product (DC where order originates from) DC • Assign product to only vehicles based there

• Typically no xdock loads will occur DROP 1 DROP 3 • Number of prime movers is obtainable - post solve • Number of vehicles is output of solve • Predefined model close to reality DROP 2

4 Roaming Fleet network

DC A

• Vehicles are not assigned to a home location DROP 3 DROP 1 • Vehicles can perform any load • Assign each order a product (DC where order is despatched) DC B DROP 2 • Topup loads can occur – system driven • Xdock loads can occur DC A • Number of prime movers is hard to obtain • Number of vehicles is output of solve DROP 3

• Predefined model close to reality – if data capture is good DC B

DROP 2 DROP 1

5 Roaming Fleet network

• Vehicles are not based anywhere, where they start today is not necessarily where they start tomorrow.

• What to do with trailer after last stop • nearest dc • dc next requiring it • dc where driver needs to return to

• Can model by adding dummy orders that return the vehicle to appropriate location.

• Many iterations of model required to ascertain the right base dc.

6 Complex constraints

• Truck ban by type of vehicle – eg large fleet banned from CBD during business hours • Accurate driver breaks • Determining consistent daily time windows • Roads not to be used by certain vehicle types (Australia's version of the truck ban) • Splitting volume to increase capacity utilisation • Whether to cross dock or not • Loading/unloading times vary by vehicle type

7 Multiple Compartment vehicle

8 9 Other scenarios

• Delivery profile smoothing • What days should a customer order? • Flattening out volume delivery in a period • Means less peaks and troughs in vehicles used • Better time utilisation of base fleet

• Centre of Gravity analysis • Where should DC be built? • How many DC’s should be built?

• Transport Network design • Cost analysis to decide what locations to keep open • What transport method is better for that lane/leg

10 11 Unique projects

• Whether to use toll roads or not?

• How staff are impacted with HQ move?

• Where should Property group purchase land?

• How accurate is our road network data?

12 We expect Linfox people to act in accordance with our values

Integrity Honest, ethical dealings within the letter and spirit of the law Teamwork Working towards common goals in a collaborative, inclusive manner Individual accountability Accepting responsibility, a sense of urgency, an eye for detail and a “can do” attitude Mutual support and respect Being available, respecting others’ opinions, time and feelings and using appropriate language Trust and openness Facilitating frequent, transparent, two-way communication Courage Willingness to risk going beyond our comfort zone and to learn from our mistakes Fairness Accepting differences of opinion and achieving balance and equity in outcomes Uncompromising standards Living and promoting our values in a culture of continuous improvement and learning

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