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M E D I A R E L E A S E |
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21 March 2000 |
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Toll repositions to capture e-business growth (continued) |
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Toll Holdings Limited: e-business STRATEGY The creation of Toll Technologies is a significant and exciting step in the evolution of Toll's overall business strategy and will ensure that current earnings momentum is sustained. Toll's e-business vision is to strengthen and enhance client relationships through the aggregation of value-adding services and to enhance the value of customers, systems, people and network assets. Through Toll Technologies, our e-business strategy will complement and support the Group's core operations. It will do this by capturing a leading share of e-business growth, particularly in the business-to business segment. It will build on our existing information technology plan and though systems integration and enabling technologies will provide the next level of synergy savings for our core businesses. TOLL TECHNOLOGIES The creation of Toll Technologies will ensure that the e-businesses and investments are visible, are differentiated to core operations and capture superior shareholder value. The Toll Technologies Venture Fund will seek investments in companies that can contribute to Toll's core operations and can exploit the value of Toll's major assets, including transport networks, purchasing power, customer base and logistics intellect. Toll plans to target minority equity interests as well as Board representation. Toll's aspiration is to be the leading information management business in the transport and logistics sector through the development of an industry portal. The e-business vision will be achieved by four key strategies: 1. Toll repositions to capture e-business growth Through Toll Technologies, develop a Transport and Logistics Information Network ("portal"). By enabling information sharing among businesses in the logistics chain, we envisage the portal will provide a new and growing source of revenue for Toll. Initially, Toll will aggregate
relocation services and build a "relocations portal" using the
Removals Australia business as a foundation. Toll will then build on this model
for business and industry wide applications. 2. Build an integrated purchasing and fulfillment capability for the business-to-business segment, interfaced into Toll's operational management systems. Toll's home delivery network will be further developed to support major customers. 3. Form technology and content alliances with global partners to quickly develop the necessary information networks. Toll is seeking partnerships with software providers to develop industry and customer specific solutions. 4. Invest in technology ventures that can add value to Toll's service capability and revenue base and create value in their own right. "TOLLWORKS" ROLLOUT The development of Toll Technologies coincides with the rollout of Toll's new operational and freight management systems, to be known as TollWorks. The rollout is proceeding well, on time and within budget. The base system acquired from Carrier Logistics Inc (CLI), an experienced New York based software house, has been modified for Australian conditions, including the changes required for the new GST regime. The new core TollWorks system is being implemented across the Group. The first phase of the software was installed at Toll Tasmania's Melbourne operations and initial feedback has been excellent. The new systems incorporate: 1. The CLI Routronics module, which provides: á Group-wide visibility enabling maximum asset utilisation á Efficient route and load-planning facilities á Computer-aided despatch via in-cab communications á Accurate freight tracking facilities 2. The FACTS 2000 module which provides á Cross-divisional visibility of freight, equipment, capacity and resources á Cross-divisional billing, customer reporting and KPI's á Group-wide interfaces to warehouses and supply chain system á Effective customer access and system interfaces á Ease of connection to freight identification, freight measurement and sorting systems Toll is also developing web-based customer connectivity through the suite of Toll Connect products. These include on-line proof of delivery retrieval, a feature that is attracting significant customer support. The Toll Connect electronic trading module is used extensively by Toll Ipec customers is now being trialed in other parts of the Group and is receiving an excellent level of acceptance. The large number of concurrent projects will extend the business integration process and further enhance the synergy benefits realised from numerous acquisitions over the past few years. This process to date has been an outstanding success and has demonstrated the Group's ability to integrate systems, including complex computer networking, financial and reporting systems, all achieved within scheduled timeframes and under budget. The Group has previously allocated $25million over the next 3 years to upgrade operational and internal systems and provide Group-wide database visibility. This expenditure will be partly funded by concentrating development costs in one core system rather than on the numerous systems inherited through acquisitions. NEW OPERATING STRUCTURE With the establishment of Toll Technologies, the current Specialised Division will be absorbed by the Long Distance Division, to be managed by Mr John Ludeke. The Divisional Director of Specialised Mr Graham Lyon has been appointed Director, Operations of Toll Technologies and will have direct responsibility for Removals Australia. The revised structure is shown as follows: |
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The development of the Removals
Australia model is well progressed and Toll expect its main components,
including the technology elements, to be part of Toll's service to customers by
end June 2000. The broader-based information infrastructure should be largely
completed by the end of December 2000.