Fox group holdings pty ltd

RESERVED FOR Rey Writer Only

l infox has been busy over the past two

years on an ambitious project to integrate

its transport, distribution and logistics

planning and management systems.

The result has been a much clearer picture

of its daily logistics and delivery schedules and

how these contribute to profitability, set increas-

ingly in a longer-term context of logistics and

distribution needs and opportunities.

At the centre is Linfox’s automated transport

planning and execution system, called OptiFox.

Integrating with it is ORTEC’s transportation and

distribution systems (ORTEC TD).

And by integrating these different aspects of

its service operations, Linfox is more flexible and

responsive in its planning, and better equipped

to roll out solutions in Asia.

Both are important elements for Linfox as

it gears up for a new phase of expansion in

Australia and Asia. The advanced planning

techniques it now u with ORTEC TD are being

used in planning tasks for some existing oper-

ations, and also as a pilot for future customer

planning projects.

In Australia, Linfox is also working with the

Load Designer module on new planning algo-

rithms for B-doubles as a solution for the entire

Australian logistics sector.

“The argument was always strong for taking

stuff out of people’s heads and placing it on a

computer system,” says Matt Gibson, Linfox

manager transport design.

“It can provide more stability and efficiency,

because while humans have the ability, built

on experience, of almost instinctively reacting

to planning challenges, they also tend to

ignore uncomfortable or unfamiliar situations.

Computers are more dispassionate! They can

alert planners to conflicts in a way that produc-

tively challenges individuals’ preconceptions, and

of course, best practice is slowly accumulated as

the combination of proven routes and individual

planners’ expertise become systematised.

Linfox made its choice following a worldwide

search against a detailed procurement speci-

fication. Two important factors in the procure-

ment process were to check that features were

available for future use (the solution had to have

a large amount of future functionality in it) and

be compatible with SAP Transport Management

(SAP TM) capability.

The integration project began in May 2010.

The original scope was for deliveries to stores

from seven retail distribution centres in NSW

and Victoria, covering fresh foods, groceries,

liquor and frozen goods.

The initial roll-out was between March and May

2011, and the integrated system has been refined

and has evolved over the intervening 18 months.

One such evolution has been a change in

scope, “a sign of the times,” according to Matt

Gibson. “One aspect of an integrated approach

is that it needs to accommodate ever-changing

service levels and needs from our customers.

Having an integrated view helps us see the

consequences and opportunities associated with

changes to fleets, volumes and stores. Changing

one of the variables always affects others. That

picture is now in much sharper focus.”

managing the detail, creating the bigger picture Linfox has a team of logistics planners across

NSW and Victoria for retail operations, who

produce daily delivery plans.

Routes are generated and then constrained

by the Linfox planners to accommodate and

reflect the realities of fleet types, vehicle

availability, store types, delivery zones and

product compatibility.

The planners are supported in turn by a

planning capability team which designed and

supports the current implementation and which

is working on future versions.

InTEgRATED pLAnnIng AT LInfOx

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s u P P ly C H A i N68

69

“One of the reasons this system was chosen

was for its enterprise capabilities,” explains

Matt Gibson. “We plan to use it as an integrated

operational planning tool. Currently it is highly

integrated in the retail environment with our

in-house developed execution and visibility tools.

It is also integrated with our forecasting system.

Trip plans are exported to our transport manage-

ment systems for execution by DC operators, who

update actual order information and fleet details.

“This integration is essential to how Linfox

engages with our customers,” adds Matt

Gibson. “Clearly, our customers expect on-time

delivery at the best possible contract rate with

the minimum amount of disruption or delay.

We have to balance all of these requirements

with our own resourcing, cost management and

service delivery commitments.

“The system we have now can handle the

complexities of our fleet assets across many

types of business. Yet each planner only needs a

single screen and because the software is a com-

pany-wide multi-user planning system, it can be

accessed anywhere, with planners able to see all

the data relating to access, orders and drivers.”

But customers and Linfox also seek new

ways to work together into the future. “We

have expertise and the benefits of scale and

resource aggregation that we can offer our

customers. To do that, we need good planning

systems for next week, accurate forecasting

for the future, and systems that are flexible

enough to manage today’s details and tomor-

row’s new opportunities, which we now have.”

introducing flexibility, successfully managing it Linfox uses the integrated system in one of its

retail contracts, and on new projects now in

planning and implementation.

These include Linfox’s linehaul business

(which specialises in interstate transport across

Australia, combining road, rail and sea modes),

fuels planning, and FMCG delivery in other parts

of Australia and in Asia.

Both ORTEC TD and Load Designer sit as part

of the Linfox Transport System, which has SAP

TM as its backbone, for planning and manage-

ment of customer orders across the complete

logistics cycle.

“In logistics, distribution and transportation

planning, there is never a moment when you

can see, ‘that’s it’, we’re there!’”, says Matt

Gibson. “So the flexibility of the solution is para-

mount and we saw that in the initial implemen-

tation. It was a complex process involving many

parties, multiple DC, complex integration across

a number of systems, and the requirement to

change the systems we already had, all the time

continuing to run our business and meet our

customers’ expectations.

“The way through this was to get early oper-

ational involvement in the system’s design and

build, and to bring in the expert planners who

had the close relationships with the operations

and who understood the delivery network. And

this is the approach we continue to use as we

integrate more of our operations.

“We see this two-year integration process very

much as just the start of a long and productive

development path.”

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