Business Processes - Assignment 3

TOLL GROUP

Business Process Analysis Report

Unit Code: IBA218

Introduction 

The purpose of the paper is to provide an effective view of the business process performed by the organization within the market. To understand and discuss the business process the organization Toll Group is being selected. The paper discusses the process mapping on order as well as the delivery process performed by the business. The paper even discusses the use of various technologies like the high-tech control room within the business for maintaining the activity of the firm.

Part 1 –  Identification and Justification

1.1 Introduction to Organization

Toll Group is a transportation and logistics company found 1888 in Newcastle (Australia) by Albert Toll. In the early '90s, the company was listed on the Australian Stock Exchange (ASX) and the new era for the company started as it rapidly started to grow and prosper. (Toll, 2019)In 2015 Toll got bought by Japan Post for $6.5 billion and became its part. Today, the company operates in 1,200 locations across more than 50 countries, and 40,000 employees help moving things of all kind by road, air, sea, and rail to deliver exceptional service for its customers. (Wiggins, 2018)

It is a remarkable company to work for as it looks after their employees as well as care about safety, culture, and values. I have been proudly part of Toll Group for more than a year, and despite decent work environment, the reason why I choose to analyse this company is witnessing organizational issues in managing company’s resources during the delivery process from supplier to their customer.

1.2 Mission, target market, and strategy

Toll group’s ultimate mission is to connect people and products and help customers via delivering optimal logistics solutions by binding its unique resources. The toll is a very diverse company so that anyone can benefit from its exceptional services from ordinary people sending small parcels all the way to complete tailor-made logistics solutions for large enterprises in a wide variety of industries such as agriculture, medicals, petroleum, fashion and many others.

The world is changing faster than ever, and due to disruptive technologies, new customer expectations and slow, uneven growth, there are new challenges and opportunities to be faced. The toll is currently undergoing business transformation by the new CEO since early 2017 by Michael Byrne) who focuses on growing customers’ businesses providing them with end-to-end logistics solutions. Part of the Toll’s new strategy is to create a simple business structure reducing the number of operational divisions from five to three that delivers value for Toll and its customers. The three main areas of operations are Global Express Services, Global Logistics, and Global Forwarding, which are backed by operational support and customer service. New functions include Group Operation Services (linehaul, fleet management, and procurement) and Group Sales and Marketing, where Toll focuses on customers' needs and makes them its own. The company is dedicated to continuous improvements in all aspect that consists of safety, customer satisfaction, employee advocacy, and financial performance. (Toll today, 2017) Additionally, Toll is continuously expanding its infrastructure by utilizing new fleets and vehicles to increase cargo volume and reliability of the service. Example of these expansions is Toll's bass strait trade project with new ship starting to operate between Australia and Tasmania which will increase current cargo volume by up to 40%. (Toll Group, 2019)

Part 2 – Process Mapping and Analysis

2.1 Identification and justification of at least two business processes contributing to the operation of the organization

Every business is unique and might have different needs for its processes. However, when it comes to power it all up with the supply chain, companies usually face similar challenges. One of the Toll’s approaches to delivering customized service for its clients is with providing an end-to-end solution which more or less represents consisting of production, storage, purchase and delivery process, and also providing with customer support in all these phases of the cycle to help businesses achieve their organizational goals and success.

End-to-end model

2.1.1 Order Process

Two business processes contribute to the running of the organization. Firstly, the order process is a system where the supplier receives orders from its clients. In the organization, selling service as the product and fulfilling the orders is as important as getting the customer itself. Therefore it is necessary to process customer orders in a fast and efficient way. Typically, Toll’s customers get their orders processed and backed using Toll’s integrated system supported by Toll employees who pick, pack and label the products and enter orders to the system to get ready for dispatch. This assures reliability and smooth flow of processing the orders as well as providing with quality service with eliminating the order process for the customer itself so that they can focus on the important things to grow their own business.

Cross-functional map of the Order process

Part of the Order process integrated by the Toll system

2.1.2 Delivery Process

After the order has been processed and goods are ready for dispatch, the second important process is the delivery process itself. Goods are dispatched and picked up from the supplier’s warehouse and taken to the automatized sorting facility, where they are sorted and distributed accordingly depending on the final destination. Vans, small trucks, and semi-trailers are used depending on the type and size of the load. For interstate deliveries, goods are transferred into linehaul trucks and carried overnight to another distributing facility.

Cross-functional map of the Delivery process

2.2 Analysis of Delivery process

My focus is to analyze the delivery process from suppliers to its clients, as this is the key operational process in delivering value to the customers.

Delivery process blueprint

As shown in the diagram above, after the supplier receives and processes their order, the goods are then picked up and taken to the distributing facility. For Toll, this means that all processed orders from different suppliers have to be collected on the day, taken out for further processing, in which some of the pickups are regular and some of them not. Also, the volume of goods is inconsistent, which makes the pickup part of the process even more challenging. Additionally, the volume of receiving goods is limited by some trucks and drivers operating on that day and other factors like weather or traffic conditions. These are some of the aspects that might make it difficult to use automation. 

Input Process Output model of the delivery process

In general, allocators are the ones responsible for receiving pickup requests or managing vehicles and drivers to get the job done. And because linehaul is directly dependent on the pickups, the organization's resources need to be managed judiciously to assure quality service by goods being handled on time and processed efficiently. Due to continuously changing working conditions, the operational environment in delivery process can get either very stressful and chaotic, especially during peak periods, or very quiet and frustrating so that many drivers face downtime not receiving enough work.

It is very important that allocators get appropriate training to manage these resources as they are the ones making decisions affecting customer satisfaction, service quality, and process efficiency. Typical mistakes of the management have inefficiently spread the workload among drivers or bad time management when placing people for unloading trucks.

One of the bad decisions in the management recently occurred in the company, where workers unloading trailers were told to stop their work at 9 PM, then continue on the next day, and then on Friday, they were allowed to work extra time to finish the rest of the unloads for the whole week. This resulted in congestion in the distribution facility, not having enough trailers available to do other pickups, chaos, and stress on the employees, and most importantly deliveries and pickups were not processed on time. This is why management is important to run the business successfully as bad decision making might result in negative feedback or complete loss of customers. 

Part 3 – Technology and Strategic Alignment

3.1 Use of technology 

The main reasons we use technology in the logistics industry is to improve speed to market, reduce operating costs, and managing inventory levels more efficiently. (Toll technology, 2019)When processing orders, goods are being labeled with bar codes for easy tracking throughout the whole delivery process. This technology is used to prevent loss of goods, measure speed and volume, and overall quality of the delivery process. After goods are picked up from clients, they are taken to a distribution facility for further handling. The most common approach for distributing goods from the supplier is the flow-through system, where goods are brought into distribution facility from one side, the automation is used in the middle for receiving and picking, and products are then dispatched from the other end. This part of the delivery process helps to reduce labor cost, improve customer satisfaction by speeding up the delivery process, and eliminate the need for storage. (Mbaskool, 2018) However, the whole stage is required to be monitored and controlled by management to assure consistent flow through the facility as well as manage the employees who are responsible for the drive of the goods. This is why management is the critical and people should get appropriate training to handle different situations that might occur.

The toll is continuously working on improving its services by implementing new technologies. In November 2018, the first high-tech control room was introduced in Melbourne to improve the efficiency of deliveries and safety of drivers by monitoring vehicles across the country and solve any organizational or safety issues that might occur. The technology utilized by the Toll Group has provided them with the technological capabilities as well as experience partnering with the various technological clients for enabling the customized solution that would help for improving the speed to the market as well as the reduction of the operating cost. The high-tech control room has transformed the operational activity of Toll Group within the market (Toll transforms operations with new high-tech control room, 2019). With the transformed control room the organization can operate for 24*7 throughout the year. It is the fact that the control room is considered to be the new nerve system of the Toll national road network (Chen, & Kamal, 2016). They are also responsible for monitoring the fleet location then the delivery time, the performance of the engine, speed event as well as the analysis of accident that also in the real time. This technological development helps the firm to maintain its business process and create a new milestone for the development of the valuable process. 

The Toll group has opened the highly automated DC that is distribution centre to meet the increasing demand of the e-commerce as well as omnichannel order fulfilment. The DC is features with the several Dematic system that is eventually integrated with the new technologies. The Dematic multishuttle stores then the buffer and sequence 80000 SKU is required for performing the logistic function automatically. The organisation have presented the full automated fashion with the help of Dematic system to maintain the sales and the business process within the market. 

The use of advanced technology within the logistic process helps the business to maintain safety and high quality of working function. It is highly effective for using the data as well as the digital technologies to maintain the control room and provide a suitable and effective logistic system (Morgan, Richey Jr, & Autry, 2016). By the help of the digital technologies and the information, the team of Toll Group can view as well as respond regarding any safety as well as the operational issue all over the nation. The use of technology in the logistics business has always created a hugely valuable process for the development of the business. The new control room with the advanced technology gear up the busy peak holiday season with the expected surge up to 40 percent (Sohn, Kim, & Yoon, 2016). In the new control room, there are 24 specialist analysts than the planners as well as the operational personnel. It is the fact that with the help of the latest technologies the organization can develop their process and their working function. 

The organisation has ditches the SAP for the Oracle 400 million Australian dollar for IT overhaul (McLean, 2019). This transformation is done for maintaining the fully automated system within the logistic department as the performance level of the business was declining due to the use of old system to meet the increased demand within the market. 

3.2 Ethics and processes 

Ethics is a vital part of performing the business and maintaining the operational activity within the organization. The code of ethics is one of the most valuable processes for the firm to maintain its operational activity as this provide effective guidance and principle regarding the behaviour and the behaviour of the employees (Fabbe-Costes, & Colin, 2017). The ethics are generally associated with the behaviour of the employees and the employers within the business to maintain their business and the value within the market. The primary issue that is being faced by the business and the team members of the Toll group is the integrity issue. It can be seen that the professional ethical standard is highly aimed for the promotion of conducting the business with honesty as well as the truthfulness of the employees (Agrawal, Singh, & Murtaza, 2016). In the logistic delivery process honesty and truthfulness play a vital role in maintaining the activity of the firm and providing a suitable and effective business process. Honesty allows the business to perform the activity that has promised to do as the logistics business and the integrity define the way of upholding honesty for performing the activity within the business. The primary purpose of the firm is to maintain the integrity and the trust of the customers, but sometime it might get failed due to the long distance and the transport of the logistic system.

Another ethical issue that is generally faced by the Toll Group is the conflict of interest at the workplace. It is the fact that various people are working within the business with the different understanding and knowledge and for that; it is quite common to have a conflict of interest (Gunasekaran, Subramanian, & Papadopoulos, 2017). The ethical value of the firm are highly concern regarding the conflict of interest within the market and for that, it becomes the essential part of the firm to reduce the conflict for maintaining the performance level of the business. Maintaining the activity of the firm for delivering a suitable and effective process in the logistics department is highly effective for the member of Toll Group (Ul-Hameed et al., 2019). It can be seen that the code of ethics plays a vital role to maintain the activity of the business and also to deliver the valuable business process within the field. The conflict of interest ethical issue is vital for the firm as it has a huge impact on the activities that are being performed by the business and the working function. 

3.3 Strategic alignment 

The core of building value for the customers to apply best practices to deliver quality service by optimizing processes for each customer, providing training necessary training for the employees and provide with quality support for the clients. With Toll’s over 120 years of experience in the industry, the company can take advantage of its strategically placed facilities across multiple countries 

People, process and support system 

• What is the value base your business strategy is built on? Is it an organization or customer-centric? 
• Is everything that is done in your organization aligned to customer outcomes?
• How do you drive the process excellence, i.e., the way to deliver value to customers?
• Is strategy a fluffy work to your employees, which does not have true ringing to their daily jobs?
• Focus energy in the right areas at the right times
• Eliminate conflicting priorities
• Increase team-member coordination, communication, and buy-in
• Clarify the capabilities and competitive advantages of the organization
• Provide structure and clarity of purpose for employees
• Empower all team members to shape the future of the organization

The strategic alignment of the business is directly associated with the alignment of the business to the mission, value as well as the strategy of the firm. The organization Toll Group has the most suitable and effective strategies that help the business to develop its business process and value within the market. The strategy is being developed according to the people, process as well as the support system of the firm (Singh et al., 2015). It enables the working function within the business and tries to provide operational activity. The organization in recent years are undergoing the largest change that also in the history of 129 years to maintain their strategic and the operational view on the working function. The core area of the operation that the business follows within the market is the global express services then the global logistics as well as the global forwarding. They even have group operation services along with group sales as well as marketing (Gerstlberger et al., 2016). The organization eventually works for the betterment of the firm and provides the most effective logistics and supply chain activity to the customers. The organization is entering the new era with the process of rethinking the way they used to work to transform the focus of the firm towards the customers for the growth of the company.

The organization is in the process of transforming its business to deal with the new changing era. The alignment with the strategy is effectively done by developing new business process and the working function within the field. The Toll 2020 is the transformation journey of the firm towards the development of a strategic process within the field (Singh et al., 2015). The organization is in the process for improving all the aspect of their performance level like the safety then the customer satisfaction level as well as the employee advocacy and the financial performance level of the business. The organization is investing within the new global safety program where they are trying to provide a suitable and effective development process within the field (Gerstlberger et al., 2016). For the improvement of the business process, it can be understood that the entire activity of the firm has to be performed according to the value and the business process of the firm. For future development, the organization has aligned with the strategy by providing the essential activity in the business. The primary process is related to the integration of the sales value and the customer service along with the power of One Toll within the market. 

4.1 Recommendations 

New technologies implemented to help with allocating process to eliminate downtime of the drivers and manage resources more effectively to avoid unnecessary costs, reducing stress environment. The organization needs to have a valuable business process for the development of working function within the field. The implementation of new technologies is highly recommended for the business to meet with their operational activity in the most effective and the proposed way. It is also recommended to the business that they need to utilize the need of the customers. The entire activity of the firm has to be developed to maintaining safety and improving the operational business in the logistics department. It is also recommended that the entire activity needs to be done by maintaining the strategic operation of the business to perform their business and analysing the valuable working function within the field. It is also recommended for the business to improve the ethical value of the firm to maintain the delivery process and the operational activity. 

Conclusion 

The business process developed by the Toll Group is changing over the years to provide valuable and effective operational activity within the market. The organization is transforming with the implementation of advanced technology and working function within the market. The paper eventually concludes the fact that the business has been developed over the years for maintaining their activity and their working function within the market for delivering the best service to the customers. The business is providing the value delivery process where the supplier and the receiver play an active role in maintaining providing the suitable delivery system to the customers. It is a vital part of the business to maintain their activity and perform the operation according to the need of the customer by enhancing the strategic operation of the business. The organisation has also maintained the fully automated DC for ensuring the high competition level within the market. The paper also shows that for the automation process the organisation have even ditches SAP for Oracle.