Linfox Gets Closer to Customers and Sharpens Business Development Microsoft Customer Solution Case study with ‘One Click’ CRM

“We needed to re-engineer the Following a major acquisition in February 2003, transportation business development process, and supply chain management leader, Linfox, practically doubled ensure the CRM integrated with its customer base overnight. With vital information about that process, and ensure the customer contacts and business development opportunities CRM was foremost a source of dispersed throughout many internal systems, Linfox needed to information rather than just a aggregate its intelligence to improve its customer relationship base to record information.” management. Using Microsoft CRM, the company developed a Will Arnott single customer contact system that now allows managers Executive General Manager across the business to keep in touch with a broad range of Linfox Business Development & Marketing Linfox Australia customers throughout Australia and the Asia-Pacific. The customer contact function at Linfox is faster, more accurate, more current and easier to use than ever before. It gives Linfox the ability to measure the relative cost and success of its various business development activities and allows the company to speak to each customer with one voice. The days of repetition and time-wasting within the company finding out who has said what to who and when are now over at Linfox.

CUSTOMER PROFILE BUSINESS SITUATION SOLUTION BENEFITS Linfox is one of Australia’s Due to sustained growth and a A CRM system from Microsoft ƒ Accurate and contemporary largest privately owned major acquisition in 2003, that allowed Linfox people information about customers. companies. With more than Linfox found itself with twice as across the company to access ƒ Ability to speak with one 9,000 personnel, it provides many customers across a wider up-to-date and thorough consistent voice to customers. supply chain management range of industries. The customer intelligence from a ƒ Ability to be more proactive in services to many public and information about these central store of information. managing customer contact. private sector organisations in customers was kept in The system is also a a variety of industries disparate systems, often mechanism for Linfox staff to ƒ Ability to measure cost and throughout the Asia-Pacific. leaving Linfox managers with record information about effectiveness of business Based in Melbourne, Linfox an incomplete or inaccurate customers and any business development activities. generates annual revenue that picture of the relationship the development activities they are ƒ Less time needed to source exceeds A$1.2 billion. company had with customers. involved in. information and report on business development.

managers were up to date and aware of all contacts, activities, opportunities and Linfox is a classic Australian success “The total cost of ownership of information concerning customers. story. Started by Lindsay Fox in 1956 with this CRM system is However, Linfox laboured with disparate one truck, it is now a multinational exceptional. It is also very and disaggregated information covering enterprise with a fleet of more than 4,700 easy to use and easy to general customer information, customer vehicles, 250 sites, more than one million contacts, contract information and business customize.” square metres of warehouse space, two development opportunities and activities. Simon Chapman airports and operations in eight countries. Systems Engineer In Australia, Linfox is structured into The company’s customer information was Linfox Australia industry streams covering retail, beverage, ® scattered in Microsoft Excel spreadsheets, fast moving consumer goods, fulfilment, an Access database, and even in Word cash services, freight forwarding, documents. Various parts of the business petrochemical and building products. had different contact management systems and most of them were informal .Some Linfox also has a strong presence in Asia. customer details, such as contact numbers It established offices in Malaysia and and addresses, differed from system to Thailand in 1993 and Hong Kong in 2001. system. Last year, it started operations in mainland China and Indonesia. This created a situation where business development managers from different parts Vital to Linfox’s success, particularly in of Linfox might not be aware of business Asia, is its understanding of the cultural, development activities conducted by other political and business issues in each parts of the business. There was also no country. Linfox also maintains high and effective means of measuring the cost and consistent standards for facilities, success of the business development equipment and employees. The company process at Linfox demonstrates this commitment to safety, . customer service and continuous The missing component at Linfox was a improvement by significant investment in centralised repository of all business leading-edge information technology. development and customer information. The main business issue was the lack of Linfox wants to be the supply chain information sharing between employees. solutions provider of choice throughout the Many of the company’s existing systems Asia-Pacific. It believes this is possible were outdated. Linfox needed a way to only by providing tailored supply chain centralize its account and contact solutions that create value for customers. management systems. This is why Linfox executives decided to upgrade its customer relationship management. They believed this would help the company manage the alliances, relationships, product movements and Linfox wanted a CRM system that could information flows that are critical to the capture all customer and business success of its customers’ businesses. development information and activities. To When Linfox acquired Mayne Logistics in achieve this goal, Linfox had to re- February 2003, its customer base doubled. engineer its business development process, A fundamental requirement for Linfox was integrate CRM into its business to develop a single customer contact development, and ensure the CRM was strategy. Given the size and diversity of the foremost a source of information rather new business, it was imperative that Linfox than just a place to record information. It also had to integrate the CRM with Linfox chose Microsoft CRM to commonly used functions such as email consolidate multiple contact sources into a and electronic diaries. centralized database and to keep track and report on customer sales activities. However, the first step was to cleanse and correct all of the company’s existing “The system was easy to implement “Microsoft CRM allows us to information. into our existing network infrastructure identify new business and users are already familiar with the “Our experience is that it is best to work opportunities and better manage Microsoft® Outlook® interface,” says out the business processes before looking our customer information. We Simon Chapman, Systems Engineer at at solutions,” says Will Arnott, Executive can now view the history of a Linfox Australia. General Manager of Business customer relationship and Development and Marketing at Linfox “CRM is a good fit with the existing business units know whether a Australia. “The solution must be IT infrastructure. It ties in strongly with current relationship exists customisable, and the CRM solution Microsoft Active Directory®, SQL before visiting potential should meet the needs of the business, not Server™, Outlook and Exchange.” customers.” vice versa.” The CRM system is now used by about Will Arnott Linfox had to decide what specific 85 people throughout Linfox, including Executive General Manager information it wanted to track about each business development managers and Business Development & Marketing LInfox Australia customer – business type, industry, current personal assistants. status, contacts, and so on. To help Linfox work out how to get the most from its CRM system, the company enlisted Datum, the data and content management solutions arm of the Senetas Group. The benefits of the new CRM system at Andrew Volz, a senior consultant with Linfox are still materialising, but there has Senetas, says getting the data into the been enough return on investment so far system was the biggest challenge. “There for the company to be certain about some was no tool available,” he says. “We results. Says Volz: “We have pushed the basically had to write the program envelope with what the CRM can do, we ourselves to get the data in to begin with.” have heavily customized it, we have added

Linfox provides supply chain management services to many public and private sector organisations

some new functionality, and we have been Easy measurement of cost and able to create something that will be a success of business development success for Linfox in the long-term.” Linfox also now enjoys sharper insights into how the company approaches existing Improved visibility across the and potential customers. The new CRM company system provides easy measurement of the Perhaps the major benefit thus far for cost and success of its business Linfox is the improved visibility of all development process. customer information and business “The system has dramatically reduced time development activities across the company. to source information and to report on our Having the luxury of one central source of own business development activities,” says current and relevant information allows Chapman. “It was easily customised to suit Linfox managers to be more proactive in Linfox, and it allowed us to better measure not only nurturing relationships with the business development process. The customers, but also in co-ordinating their total cost of ownership of the CRM is also approach. exceptional.” “Microsoft CRM allows us to identify new business opportunities and better manage Ease and speed of customization our customer information,” says Arnott. Volz says this is the strongest selling point “We can now view the history of a for Microsoft CRM. “It is easy to customer relationship, both the good and customize from a technical viewpoint, but the bad, and business units know whether a also easy to customize from a business current relationship exists before visiting viewpoint,” he says. “It is cheap for the potential customers.” business to add or change existing screen layouts. For example, Will could call me Information that is more accurate with an ad hoc request and I could have and more up-to-date that up and running within half an hour. Developing true empathy with customers With some of the larger CRM systems, that and the business conditions they face would take days as a minimum. There is requires frequent and meaningful contact – also no need for programming so there is often with more than one person within less chance for error.” their organisations. A CRM system stocked with useful information has allowed Linfox managers to better understand their customers. The solution now in place at

Linfox also allows the company to establish and maintain links to other sources of industry information, research and market intelligence such as business information provider, IBIS.

Microsoft® Windows® XP Microsoft Office XP Microsoft Windows Server™ 2000 with Service Pack 3 Microsoft SQL Server™ with Service Pack 3a Microsoft CRM 1.0 (North American version) Microsoft Windows Exchange Server 2000 Microsoft Active Directory®

Hardware HP ProLiant ML350 G3 Server 2x Xeon MP 2.0 GHz processors with 1280 MB RAM 2x 18.2 GB SCSI HD in RAID 1 4x 72.8 GB SCSI HD in RAID 5

Partners Senetas Group http://www.senetas.com.au/

Software for the Agile Business

For more information in Australia, call the For more information about Linfox Australia © 2004 Microsoft Corporation. All rights Microsoft Information Centre on 13 20 58. To services, call (03) 9542-1111 or visit the Web reserved. access information using the World Wide Web, site at: http://www.linfox.com/ This case study is for informational purposes go to: only. MICROSOFT MAKES NO WARRANTIES, http://www.microsoft.com/resources/casestudies/ For more information about Senetas Group EXPRESS OR IMPLIED, IN THIS SUMMARY. services, call (03) 9820-1988 or visit the Web Microsoft, the Microsoft logo, Active Directory, For more information about Microsoft CRM in site at http://www.senetas.com.au/ Outlook, SQL Server, Windows and Windows Australia go to: Server are either registered trademarks or http://www.microsoft.com.au/crm/ trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Date Published: March 2004