SolutionsAsia Pacific December 2013

10 1512 29The peak is on

2013 Highlights

Supporting Australia’s mining industry

Transport in Indonesia

SUPPLY CHAIN SOLUTIONS

Driving Australia’s mining industry

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Contents

The peak is on

Supporting Australia’s mining industry

2013 Highlights

Transport in Indonesia

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Chairman’s note 1

CEO’s message 2

Logistics Supplier of the Year 3

Supporting customer growth 4

The natural 6

Strategic Arnott’s partnership 8

The peak is on 10

Supporting Australia’s mining industry 12

People come first 14

2013 Highlights 15

Online in Queensland 19

All aboard to Linfox Townsville 20

Global business 21

Peter in profile 22

27 years of Linfox Scholarship 23

Linfox Alumni 23

Life in the Pilbara 24

New site boosts driver safety 25

Bevchain gets bigger 26

Smart track 27

Cereal moves 27

New DC delivers 28

Transport in Indonesia 29

Scholarship boost 30

Talking training 31

Linfox wins SAP award 32

Cancer awareness 33

Peter Fox - Chairman

Growth and investmentThe Linfox Logistics team has consolidated significant work during 2013 and invested substantially in the people, equipment and systems we need to continue developing supply chain solutions for our customers.

We opened a new multi-temperature warehouse in Thailand for Minor Food Group recently, a new warehouse in Sydney for our growing national distribution network for Arnott’s, as well as a new high security DC for our expanding Linfox Healthcare business.In Indonesia we will receive 50 new vehicles to expand our work in the FMCG sector and the establishment of a state-of-the-art control room has boosted our capacity to monitor and manage our Thailand fleet of trucks.

One of the most crucial investments over the year has been in developing our SAP IT platform, with a collaborative effort with SAP to develop the Linfox Transport Management Solution. We have also begun rolling out our Warehouse Management Solution based on SAP’s eWM. These will form the backbone of our systems to efficiently manage increasingly complex supply chains for our customers.

Building professionalismThe Lindsay E Fox Scholarship for study at the University of Denver’s Intermodal Transport Institute (ITI) was boosted to $20,000 recently as a contribution to building the professionalism of our industry globally. The annual scholarship is available to industry professionals globally who do not work at Linfox.

The scholarship complements our commitment to building the knowledge and skills of Linfox people. Many Linfox leaders have attended the ITI Masters course and our CEO Michael Byrne is a graduate of the school and a current board member.

Through Linfox College we offer a range of education opportunities to Linfox employees, from online studies to management degrees, to advanced leadership studies at business management schools around the world. This investment is essential for the future success of our business and of the supply chain industry.

Making a differenceLinfox’s environmental sustainability strategy has yielded a 45% per cent reduction in our rate of greenhouse gas emissions since we began in 2007.

This creditable achievement is due to the commitment and innovation of Linfox people. Our eco-drive training program makes a huge contribution to this result, providing our drivers with the techniques to be more fuel efficient in their work.

Vehicles’ fuel efficiency standards have also improved over the corresponding period. Last month we began operating two LNG fuelled Kenworth trucks in our work with BOC, which recently opened a public LNG refuelling station on the busy road between Australia’s two largest cities, Melbourne and Sydney. This evolving fuel source can potentially

reduce carbon emissions by up to 25% and we are monitoring the new vehicles’ performance.

While diesel accounts for more than 80% of our carbon fuel use, smarter lighting systems and charging procedures for materials handling equipment are also helping to reduce our carbon footprint.

Christmas and New Year Our team has prepared well for the coming peak season. This is an extremely important time of the year for Linfox and we are well positioned for the surge in volume. We will achieve the highest attainable service levels throughout our operations. Managing successful peak season operations rests on careful long term planning and collaboration with our customers across the Asia Pacific. We value the strong strategic and tactical partnerships we share with all of you.

On a final note, I would like to take this opportunity to thank you all for your support and wish you and your families a very merry Christmas, a Happy New Year and a most proposerous 2014

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Safety firstWe remain focused on achieving our safety vision ZERO.

With a renewed focus on road safety in our industry, it is important to restate Linfox’s commitment to safety as the cornerstone of our business.Continuous improvement in safety requires a multi-layered approach, addressing the cultural, behavioural and technical aspects of the many activities involved in our business.

In-cab vehicle cameras and sophisticated central control rooms that monitor our operations in real time are amongst key innovations to improve safety and operations.

Maintaining a modern fleet ensures our vehicles have the newest safety features and reduces repairs and maintenance. A modern fleet also delivers greater fuel efficiency and driver friendly features.

Training and safety awareness remain fundamental to achieving our safety vision ZERO. Linfox’s Operational Training team ensures our trainers across all countries deliver a consistently high standard of safety training.

At this time of the year we are in the midst of our Peak Season Safety program which highlights the importance of safe behaviours during the trading peak for many of our customers.

Business growthWe have enjoyed substantial growth in all sectors of our business during 2013 throughout our Asia Pacific footprint.

New work in the mining sector in Queensland and expansion in Linehaul, Retail and FMCG in Australia and Asia has contributed an additional 1,500 full-time equivalent jobs to Linfox. New business also underpins significant investment in equipment, property and IT systems, ensuring we deliver ongoing efficiencies for our customers.

We are delighted that our customer DuluxGroup rewarded our team with its Supplier of the Year Award for the second time in three years. While we don’t seek awards it is fitting recognition for our joint commitments to safety, customer partnerships and continuous improvement.

Our IT team recently won SAP’s supply chain excellence award for our joint project to develop our Linfox Transport Management Solution, a cutting-edge system that will increase operational efficiencies in the coming two years.

The year aheadWe are looking forward to a strong 2014 for Linfox Logistics. As we approach the final 18 months of our FY2015 five-year strategy I am pleased to report that we are on track to achieve most of our key goals.

Our safety performance has improved significantly, but we can never be complacent. The business is very focused on working with our customers to deliver ongoing improvements in operational efficiencies and we enjoy deep strategic customer partnerships.

We have increased training and educational opportunities for our people, with a boost in our graduate program which seeks to build the professionalism of our industry and secure Linfox’s future leaders across the Asia Pacific.

Two-thirds of our 21,000 people now live and work in Asia as we consolidate our position across the region.

We have achieved a 45% reduction in our rate of greenhouse gas emissions since introducing our sustainability strategy in 2007, well on the way to meeting our 50% target by 2015.

Importantly, we are developing our next five-year strategy to build a plan for the ongoing success for Linfox Logistics.

Our people have delivered excellent peak season service to our customers in the lead up to this Christmas-New Year period and we look forward to a buoyant 2014. On behalf of everyone at Linfox, I wish all our customers and friends a happy and safe festive season.

Michael Byrne - CEO

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Logistics Supplier of the YearLinfox wins DuluxGroup’s Supplier of the Year Award 2013, for the Transport and Logistics category.

A strong commitment to safety and continuous improvement earned the Linfox team of 110 people working with DuluxGroup across Australia our customer’s highest logistics award recently.Linfox’s National Contracts Manager Industrial, Richard Ellis, said DuluxGroup was impressed with our focus on safety and compliance, and the seamless transition when Linfox took over metropolitan transport in Western Australia and Queensland.

“As well as making safety awareness a key feature of operator training, Linfox implemented a number of technical innovations in our fleet and our customer’s warehouses,” Richard said.

“All our new rigid trucks now feature foot controls on the tailgates and safety handrails, with the existing fleet currently being retrofitted. Load restraint side curtains are currently being tested to meet carriage of dangerous goods requirements, and will be installed in all new fleet.”

“Within the Distribution Centre at Dandenong South, new forklifts incorporate safety features including PIN entry, electronic prestart checks and ‘automatic impact shutdown’.”

Linfox also won the same award in 2011.

Linfox manages metropolitan transport for DuluxGroup in Melbourne, Sydney, Brisbane and Perth. We also operate the group’s DC at Dandenong in Melbourne.

DuluxGroup produces a wide range of paints, wood care, garden and home improvement products under the business’s premium brands Dulux, Cabot’s, Selleys, B&D, Yates, Lincoln Sentry and Parchem.

Driver John Iddles at the DuluxGroup DC in Dandenong South.

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The new state-of-the-art DC for Linfox customer Minor Food Group (MFG) was opened in October.MFG’s Chairman, William Heinecke, Vice President, John Heinecke and CEO, Paul Kenny joined Linfox Founder, Lindsay Fox, Vice President Retail, Mark Parlane and Country Manager James Allmand to officially ‘cut the ribbon’ at the new DC.

Lindsay Fox said that the opening marked more than a year of planning and construction to deliver a high-tech facility that would help secure

MFG’s future as one of the leading food suppliers in Thailand.

Linfox has worked with MFG since 2005 to supply its chain of more than 900 restaurants across Thailand. Its restaurant brands include Swensen’s, Burger King, Sizzler, Dairy Queen, The Pizza Company and The Coffee Club.

Designing for the futureThailand’s calamitous 2011 floods closed MFG’s existing Bang Pa In DC for a period of time. So a key objective in designing the new site was to mitigate the risk of closures due to similar natural disasters.

Linfox’s design team worked with MFG and Warehouse Asia to design a facility that delivers capacity for growth and incorporates SAP’s leading edge eWM warehouse management system. The system ensures efficient operations.

The site employs a team of 170 with 47 pieces of MHE and 11 Linfox delivery vehicles.

The official opening ceremony included a traditional blessing ceremony by Buddhist Monks.

Supporting customer growthMinor Food Group’s new DC at Bang Na will secure our customer’s future.

Key Design features:- Improved operational controls

- Four temperature zones – ambient, +40ºC, -180ºC, -250ºC

- Loading dock design generates energy savings

- Reduced MHE requirement

- Productivity improvements

- Better staff facilities

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Our team at MFG.

“Linfox’s DC design team helped design a facility

that delivers capacity for growth and incorporates

SAP’s eWM.”

Key Design features:- Improved operational controls

- Four temperature zones – ambient, +40ºC, -180ºC, -250ºC

- Loading dock design generates energy savings

- Reduced MHE requirement

- Productivity improvements

- Better staff facilities

Traditional blessing ceremony with Buddhist Monks.

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Two new liquefied natural gas (LNG) fuelled Kenworth prime movers recently joined Linfox’s fleet for work with leading gas producer, BOC.

The naturalLinfox has introduced two LNG fuelled vehicles to its BOC fleet.

The prime movers also use new A and B trailers with specially designed pneumatic restraint systems to secure their loads of bottled gas and will operate the busy Melbourne to Sydney route, transporting our customer’s range of compressed bottled gas products.

BOC has established its first public LNG refueller at Tarcutta, halfway between Melbourne and Sydney. Tarcutta is a convenient stop as it is our normal driver changeover point, allowing drivers to return to their home town on each trip, reducing fatigue.

LNG futureBOC produces LNG and is keen to establish a network of refuelling stations to support growth of this alternative fuel in Australia’s transport industry.

BOC has other LNG refuelling stations at Preston in Melbourne and in development at Wetherill Park in Sydney. The company is focused on developing an LNG highway servicing Australia’s eastern seaboard. A network of refuelling stations was opened in Tasmania in 2011.

The Kenworths use Westport’s high-performance heavy-duty LNG engines. The Westport high pressure direct injection technology is a good fit with

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Natural gas facts • LNG pricing is more stable than diesel

• Natural gas has a low energy density, so as a fuel it must first be compressed (CNG) or liquefied (LNG)

• Natural gas is predominantly methane and very different to liquefied petroleum gas (LPG)

• Natural gas vehicles produce lower greenhouse gases

Kenworth’s leading truck models and delivers operator requirements for high-power outputs. The engines can deliver greenhouse gas reductions of up to 25% relative to diesel engines.

Safe partnershipLinfox manages and operates distribution of BOC’s compressed gas products in Queensland, New South Wales, Victoria and Darwin. Our team is highly trained to safely manage dangerous goods.

BOC is a member of the Linde Group and supplies compressed and bulk gases for industrial, commercial and medical applications.

Driver Malcolm Irwin.

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Strategic Arnott’s partnershipArnott’s Australia and Linfox have extended their national distribution contract to 2024.

Linfox provides warehouse, transport and linehaul services for Arnott’s, a major iconic Australian food producer.The long term partnership develops continuous improvement in supply chain operations, ensuring greater efficiencies in delivering some of Australia’s favourite biscuit brands to Australian’s tables.

Left to right: Dayshift Team Leader Dave Hall, Operations Manager Jamie Laing and Storeman Marcelo Cifuentes.

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Stock accuracyEnsuring stock accuracy is vital for improving efficiencies.

The last annual stocktake for Linfox’s operations for Arnott’s saw three warehouses reporting perfect stock-on-hand results and one warehouse reporting just one carton unaccounted for.

Linfox National Manager, Steven Paine said the one carton was easily located because our system is so robust.

“The introduction of strict count- back procedures backed by the implementation of our SAP warehouse management system has eliminated the need for formal stocktakes,” Steve said.

“Count-backs are used at the pick face and for any stock removal in a warehouse, together with strict cycle counts and procedures for any stock adjustments.”

New Sydney DCThe system has been implemented at Linfox’s new state-of-the-art warehouse for Arnott’s at Bungarribee, in Sydney.

The new 21,000-pallet site extends our work with Arnott’s, adding supply to Arnott’s customers in Victoria and Tasmania to our network using Linfox Linehaul, an integral part of our work with Arnott’s across Australia.

The new warehouse replaces existing sites in Sydney.

Operations are also located in Brisbane, Adelaide and Perth.

Strong partnershipArnott’s and Linfox share a strong collaborative approach for developing their supply chain. Steven Paine says that includes an annual strategic conference that analyses the performance of each site and plans for new developments.

Arnott’s Director Planning and Logistics, Hugh Callander said, “We regard Linfox as a valued partner who has helped us transform our supply chain, allowing us to unlock value that is shared with our valued customers and loyal consumers.”

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Storeperson Natalie Hunuhunu

The peak is onAustralia’s Peak Season runs to the end of January with spikes in sales in the lead up to Christmas, New Year and Australia Day.

Linfox’s Truganina site in Victoria.

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For Linfox customer and major retailer Coles, the December-January Peak Season is a critical trading period that represents their busiest time of year. Coles National Transport Manager – Supply Chain Todd Foster said sales increase significantly over the three month period and the business relies on supply chain partners, like Linfox, to deliver larger stock volumes efficiently and on time.

“Each year, our volumes grow to record numbers partly as a result of the demands of the holiday season, but also through the increased number of special offers we provide our customers.”

“Coles has been in planning for peak trading since July and we’re gearing up for another big year working with Linfox to ensure we’re supplying our customers with the best customer experience we can,” Todd said.

Linfox President Retail, Nick Capp said his team started analysing 2012 data in August and has been working with customers, including Coles, Myer, David Jones and Bunnings, over the past few months to build on last year’s performance.

“We are committed to getting smarter in how we manage increased workloads over Peak Season year on year to drive greater efficiencies and successful results for our customers,” Nick said.

Peak numbers• 2.2 million cartons will be delivered

to Coles stores from Linfox’s Truganina site in Victoria in the week leading up to Christmas and Boxing Day.

• 4 times to the moon and back is the equivalent distance travelled from Coles DCs to its national store network over Peak Season.

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Supporting Australia’s mining industry

Linfox is delivering more services across more sites as demand continues in the handling, management and transportation of materials to and from

Australia’s major mining operations.

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Cannington Mine.

Cannington Mine, QueenslandA fly-in fly-out mining and processing operation that has grown to become the world’s largest and lowest cost producer of silver and lead.

Nickel West, Western AustraliaA fully integrated mine to market business that includes mines, concentrators, a smelter and refinery.

Iron Ore, Western AustraliaBHP Billiton Iron Ore employs 13,000 people across the Pilbara with mining operations supported by the towns of Newman and Port Hedland.

Olympic Dam, South AustraliaOlympic Dam is Australia’s largest underground mine, producing copper cathode, uranium oxide concentrate, gold and silver.

For more than 15 years, Linfox has been supplying mines with general freight and fuels, and moving concentrate and materials off-site, including BHP Billiton’s nickel and iron ore operations in Western Australia, Olympic Dam in South Australia and more recently its Cannington Mine site in Queensland.

General Manager, Resources & Industrial, Tom Hannaford said Linfox worked across almost every Australian mining and minerals province.

“Linfox has built a proven track record in mining and minerals logistics drawing on the extensive capabilities of our fleet of specialist vehicles and safety management systems.

“A shining example of our increasingly competitive offering is our lasting customer relationship with BHP Billiton,” Tom said.

BHP Billiton Manager – Supply, Cannington Copper, Bart Courtney said the Linfox team was cooperative and responsive.

“I am delighted Linfox delivers freight and logistics services to many of our Australian mining and minerals operations, including Cannington Mine,” Bart said.

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A patient in regional New South Wales had contacted Ferring less than 24 hours before her trip to the USA for a medical procedure. She had accidentally rendered the Ferring product she needed to administer during the flight to the USA unusable.Faced with a critical situation, the Ferring Linfox team had a one-hour window to deliver the replacement product to the patient at Sydney International Airport and show her how to prepare it correctly.

The replacement cold chain product was picked at Linfox Healthcare at 5.45 AM on Sunday and delivered to the patient at the airport by special courier. A Ferring representative was then able to show the patient how to prepare the medication, well ahead of her onward flight to the USA later that morning.

Ferring’s Finance & Administration Director, Jackie Watts said, “The effort and cooperation of many individuals helped us apply the Ferring philosophy and put the patient first. This would not have been possible without the help of several individuals at Linfox Healthcare who really went out of their way to make this possible.”

Ferring Australia has worked with Linfox Healthcare for more than 10 years. Ferring has been focused on the treatment of serious medical conditions such as Crohn’s disease, fertility complications and liver disease to name a few.

People come firstThe team at Linfox Healthcare recently won praise from their customer Ferring for helping meet its philosophy of ‘People come first’.

Sarju Shah and Stuart Corrigan at Linfox Healthcare.

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2013 Highlights

In 2013, Linfox has made steady progress in building on its successes to realise its vision of delivering service excellence and adaptable supply chain solutions across the Asia Pacific.

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2013 Highlights

SAFETY

• We have installed in-cab cameras in Queensland and Western Australia. The camera is triggered by sudden movements, like heavy braking, and sends a clip to an independent monitor.

• Our LTIFR has fallen to 1.3.

SUSTAINABILITY

• We reduced our rate of greenhouse gas emissions by 45% based on our 2007 emissions. This is a significant step towards our target of a 50% reduction by 2015.

TRAINING

• Introduced new operational train-the -trainer program throughout Asia, including audits and retraining of existing trainers focused on leading standards and competence.

• Introduced new training programs such as Investigation of Work Health and Safety, Defensive Driving and Forklift operations.

• Increased audits, development of trainers and accountability. Improved transparency of training operations.

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2013 Highlights

LEARNING & DEVELOPMENT• 25 new graduates joined our

Graduate Program in 2013, including seven from Asia. 25 Australian and New Zealand graduates have been offered roles for 2014 and further offers will be made shortly to graduates in Asia.

• There have now been 212 job placements under our Indigenous Employment Program.

• Six cadets graduated from our two-year Cadet Program that offers young school leavers work experience and skills training.

• 58 employees participated in our diploma of management and diploma of logistics courses either in class sessions or by distance learning.

CUSTOMER RELATIONSHIPS• More than 80 Linfox customers

and guests explored emerging trends in people management and technology at our customer conference.

• Linfox began transport services to Woolworths’ Victorian stores and recruited a new team of 150 people.

• Linehaul was awarded the Victorian CUB interstate rail distribution and Target stores extension to the Northern Territory.

• The Retail team commenced new work in Malaysia with the Giant chain of supermarkets, part of Dairy Farm which is one of Asia’s largest retailers.

• We began deliveries in Indonesia for a new customer, Sayap Mas Utama with 50 vehicles delivering our customers household products to convenience stores.

• Our team in New Zealand has begun work with CentrePort in Wellington, one of the country’s busiest ports in a joint venture known as CentrePac.

• We began operating Modern Trade Deliveries for Unilever in Jakarta and acquired 14 vans for the operation.

• Our FMCG team extended its existing contracts with customers ITA and Mundipharma for the next five years.

• Our work with leading cosmetics producer Coty has been retained for the next six years.

• Our work with Hindustan Unilever in India expanded with the commencement of operations at another customer DC at Dindigul.

• In Australia, the Retail team has begun deliveries for Woolworths Online in Queensland, giving Linfox a role with Woolworth’s Online in all east coast states.

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Awards

• Linfox Driver Gary Deane-Spread won the Professional Driver of the Year Award at the Western Australia Transport Industry Awards and was nominated for the national award.

• Linfox won the Victoria Day Council’s Good Corporate Citizen Award for its philanthropic and community support initiatives.

• Our Resources & Industrial team won Logistics Supplier of the Year Award for the second time in three years from customer DuluxGroup.

• Our IT team won SAP’s supply chain excellence award that recognises the new Linfox Transport Management Solution based on SAP’s TM 9 system.

2013 Highlights

Fast factsLinfox has achieved:

• 45% reduction in greenhouse gas emissions

• 1,500 new FTE jobs

• Contract renewals – Mars Petcare 5 years, Arnott’s 5 years, ITA 5 years, Coty 6 years, Gorgon/Agility to 2015

• 215 job placements under our Indigenous Employment Program.

IT

• Developing the Linfox Warehouse Management Solution and Linfox Transport Management Solution based on our leading SAP platform for rollout over the next two years.

• The Linfox in-cab communication tablet, which combines a number of communication devices into one easy-to-use device, has commenced roll out as a pilot program at the Woolworths’ Mulgrave and Laverton sites.

• Opening of our Central Control Room for operations in Thailand expanded the Linfox network of control rooms at Hazelmere in Perth and in Melbourne.

• The IT team has developed a FoxTrax control room ‘App’ which allows operators to monitor multiple Linfox assets across our Asia Pacific operations.

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Driver Philipe Santoni.

Online in QueenslandLinfox wins Woolworth’s Online deliveries in Queensland.

Linfox began Woolworth’s Online deliveries in metropolitan and regional Queensland last month.Sixty new vehicles sporting Woolworth’s bright new livery began work in centres as far apart as Brisbane and Cairns in far north Queensland.

Linfox’s General Manager Woolworth’s Terry Quinnell said the online market has shown substantial growth over the last few years and we’re delighted that our expertise and professionalism has expanded our business with Woolworth’s.

Linfox also manages Woolworth’s Online deliveries in Victoria and New South Wales. “The convenience of online shopping and home deliveries has shown tremendous growth over the last five years,” Terry said.

Customer serviceWe provide a sophisticated transport management system and our driver training program ensures that drivers represent Woolworth’s in a courteous and professional manner.

Drivers act as customer service agents, not just driving but ensuring that shopping is delivered to the kitchen bench with engagement with Woolworth’s customers.

As well as the Online business, Linfox provides store deliveries to Woolworth’s supermarkets in Queensland, northern New South Wales and more recently in Victoria. Linfox also operates store deliveries for Woolworth’s Progressive supermarkets in New Zealand.

The new Woolworth’s Online fleet vehicles are well equipped to maintain product integrity and feature chilled and frozen compartments to ensure online customers have access to Woolworth’s full range of groceries.

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The Unilever DC in Jakarta, Indonesia.

All aboard to Linfox TownsvilleLinfox’s Townsville facility for long-time customer Bunnings is the new port of call for its Asian imports.

Leisure items, such as outdoor settings and BBQs, which previously made the round trip from Asia to Brisbane through to sites across North Queensland, are now shipped directly to the Linfox facility in Townsville.

Linfox Townsville Site Manager Joe Crespan said the facility had started inbound services from Asia and planned to commence outbound services before the end of the year.

“We are supplying Bunnings stores across the North Queensland region, including sites in Townsville, Cairns, Atherton, Airlie Beach, Mackay, Rockhampton, Gladstone and Mt Isa.

“This is great news for our customer and provides its local store network with shorter waiting periods for new stock, which is particularly important in the lead up to Peak Season,” Joe said.

Linfox’s Townsville facility began import services with Bunnings in October as the retailer’s primary DC in North Queensland. Today, the site is home to a small team of five Linfox employees and the Brisbane based transport team.

Direct shipping to North Queensland is part of our joint commitment to continuous improvement in our work with Bunnings, which includes transport services along Australia’s east coast and in New Zealand.

“We are supplying Bunnings stores across the North Queensland region, including sites in Townsville, Cairns, Atherton, Airlie Beach, Mackay, Rockhampton, Gladstone and Mt Isa.

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Global business Linfox Chairman Peter Fox and CEO Michael Byrne recently visited the US to meet some of our major customers’ head offices.

The annual trip is an important opportunity to receive feedback from the global headquarters of customers such as Campbell Arnott’s, Chevron and BHP Billiton Copper as well as key suppliers such as Genesee & Wyoming, a key rail partner and SAP, our tier 1 technology partner.

Michael said the trip is an essential investment in maintaining strong multi-layered relationships with our customers.

“We are committed to strengthening strategic ties with our customers with representatives from across their operations locally in Australia, New Zealand and Asia, and globally with leaders in North America and Europe.

“I am pleased to report that the general consensus from our customers is that Linfox differentiates itself from the

competition through its dedication to safety, operational execution and continuous improvement, which is significant feedback for our broader team,” Michael said.

“One of our key strategic areas is developing deep customer relationships based on operational excellence and to make that a reality we must understand the strategic drivers of our customers from a local and global perspective,” Michael said.

Customers generally expressed a growing sense of optimism about the recovery of the US economy with promising signs from emerging markets in South America, South East Asia and Mexico.

Each year, Linfox CEO Michael Byrne and Peter Fox make the journey to the US where they meet with customers.

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Peter in profilePeter Tam, new Linfox General Manager HR Asia brings a wealth of Human Resources experience to our expanding business.

Linfox has grown to a team of more than 21,000 people in 10 countries and Peter Tam has recently joined the business to lead all major HR initiatives across Asia. With more than 25 years’ experience as a HR practitioner in South East Asia, he has spent the last 10 years in the freight and logistics industry.

Currently based in Hong Kong Peter says, “I am a generalist HR practitioner with expertise in performance management, employee relations and mergers and acquisitions. At Linfox, I will provide advice and support on all areas of human resources to local Country HR Managers, senior executives, operational managers and employees.”

“My role at Linfox is focused on delivering quality HR services across Asia by developing and managing HR strategy and operations which includes talent management, organisational development and workforce-force planning,” Peter said.

“I am looking forward to working with Linfox and continuing to build a motivated, skilled and safety conscious workforce which in turn will provide quality service to our customers,” he said.

President Human Resources, Laurie D’Apice highlights that it is critical to have leaders with Peter’s breadth of experience.

“Peter comes to Linfox well equipped with the latest industry knowledge and will work towards continuing to build a successful Asia Pacific business,” Laurie said.

Peter Tam.

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27 years of Linfox Scholarship

Cassie Milburn is the 27th secondary school student to receive the Linfox AFS scholarship to live and study overseas.

Linfox Organisational and People Development Manager, Tracie Maulden said the scholarship program was a once in a life time opportunity.

“Every year, the scholarship is available to a relative of a Linfox employee studying in years nine to twelve, to choose an overseas destination where they can gain independence, learn a new language and different culture for up to 12 months.”

Cassie’s father, Brenden Milburn, Linfox Inventory Manager at the Coles DC in Truganina submitted Cassie’s application.

“I am very excited about the journey my daughter is about to embark on,” Brenden said.

Linfox has been running the program in partnership with AFS since 1989. In 2014, Cassie has opted to live and study in Germany for 12 months.

Linfox alumni Former senior Linfox leaders gathered for the fourth annual Linfox Alumni meeting at the Fox Classic Car Museum.

Chairman Peter Fox hosted the annual Linfox alumni gathering alongside Lindsay Fox and CEO Michael Byrne.

“The event provides an opportunity for former Linfox managers to meet and share stories about our industry,” Peter said.

“We are fortunate to have such a wealth of knowledge at these meetings with former leaders who have decades of experience in our business.”

“We also acknowledged the late Charles Jamieson, former Director of the Linfox Board who suggested forming the alumni group,” he said.

Brenden Milburn, Inventory Manager at the Coles DC in

Truganina, his wife Veronica and daughter Cassie with Linfox

President Human Resources, Laurie D’Apice.

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Driving in the Pilbara region, Paul usually encounters 40+ degree temperatures, roaming cattle and depending on the time of year, the added challenges of cyclones, thunderstorms and dust storms.“The Pilbara region is like no other place in the world. People need to experience it to understand what it’s like to live and work up here,” Paul said from his home base in Port Hedland where inadequate phone reception and internet access are day-to-day propositions.

“It’s 40 degrees today and we’re not even in the hot season yet but that’s life in the Pilbara. Cyclone season starts in November and that takes us through until February. I’ve experienced five cyclones since I first came here, which generally means a town lock-down for at least one or two days.”

A New Zealand native, Paul has been driving in the Pilbara region for the past three years and has seen the logistics operation grow from six to around 20 trucks.

He drives a triple road train tanker carrying diesel fuel to mine and camp sites in the Pilbara region with strict safety guidelines around his time behind the wheel.

“We live by the clock and follow a strict schedule that involves 56 hours over a four-day week. Each day I travel approximately 800 kilometres and take mandatory 30 minute breaks every five hours.

“There are no fences for cattle up here so there is livestock on the roads all the time, which means a high chance of cattle strikes, so you rarely see cars out on the road at night,” Paul said.

Paul and Linfox’s broader team of Pilbara drivers are a vital life-line for the region’s significant mining community delivering 120,000 litres of diesel per truck to power its network of mines and camp sites. Each site is home to between 1,500 and 3,000 workers with up to five flights going in and out of the mines every day.

Life in the PilbaraThere is no such thing as an average day for Linfox Driver Paul Walters.

Driver Paul Walters.

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Perth

CarnarvonOnslow

Dampier

Linfox Linehaul depot

Road

The new site provides shower, toilet and crib facilities for Linfox drivers on the 900 kilometre leg between Perth and Carnarvon and the remaining legs to Onslow and Dampier.

Gorgon Operations Manager, Brett Czaplinski said the site is almost half way between the Gorgon sites in Henderson and Dampier, Western Australia.

“These new rest facilities are extremely beneficial for our drivers, offering them increased comfort and safety on a challenging stretch along Western Australia’s Pilbara region.”

Brett said the site also provided operational benefits with drivers making the switch from double to triple trailers before making their last stop.

“This new site is a secured road train hook up location, allowing drivers to safely reconfigure road trains.”

The Gorgon and Wheatstone operations involves a Perth to Carnarvon leg in double trailer configuration and the remaining leg to Onslow and Dampier in triple trailer road train configuration.

Linfox also picks up freight from various sites in and around Perth and Karratha back into the supply bases for the trip north.

New site boosts driver safety

The new Linfox site in Carnarvon, Western Australia provides a range of driver safety benefits, particularly reducing fatigue.

Life in the PilbaraThere is no such thing as an average day for Linfox Driver Paul Walters.

W.A.

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“Every day our Somerton DC moves more than 3,000 tonnes of product and every week processes more than 2,000 orders.”

Bevchain State Manager VIC/TAS Steve Andonopoulos.

The BevChain Somerton operation holds 25,500 pallets for 21 beverage customers across the alcoholic and non-alcoholic sectors, including Campari, Brown Brothers, RedBull and up and coming brands like Matso’s Brewery and Mclaren Vale Beer. The warehouse operates 24/5 from Sunday and employs 120 people providing customers with a range of distribution services from route to market, to National Distribution Centres, as well as cross docking and linehaul distribution to all States.

Bevchain CEO Kylie Fraser said the expanded DC was a major milestone for the business that responded to increasing customer demand for distribution and storage services.

“Every day our Somerton DC moves more than 3,000 tonnes of product and every week processes more than 2,000 orders, which provides value through scale for our customers.”

The Bevchain Somerton DC has the following key features:

• Forklift and Reach Truck operations

• Picking from full pallets down to bottles

• Unloading/loading of containers

• Slipsheeting of pallets

• Layer grabbing / picking

• Loading and unloading of vehicles

Bevchain gets biggerA key highlight for Linfox’s Bevchain business in 2013, a joint venture with customer Lion, is the expansion of its Somerton DC in Victoria, Australia.

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Smart trackA smart new forklift management system improves warehouse planning.

A new fleet of ‘smart’ Toyota 8 series forklifts is improving warehouse planning at one of Linfox’s sites in Melbourne. The Smart Track system provides prestart checks, idle and productivity time reporting.

The system also reports who operates the equipment, allowing managers to monitor staff and it even sends prompts when drivers’ licences are about to expire.

Smart Track also provides impact alerts if an impact is greater than a certain G-force.

Brett Ambler, Distribution Centre Manager said, “The system assists fleet management, providing continuous improvement benefits. It helps you plan your fleet, understanding how much equipment you need and managing staff.”

Leading Australian food producer Sanitarium and Linfox share strong commitments to safety and caring for the environment.

Together we are also focused on continuous improvement in distributing Sanitarium’s range of cereals, soy milk and vegetarian foods across Australia. The companies have been working together

for more than a decade and we recently extended our supply chain partnership for another three years.

Sanitarium production is based near Berkeley Vale on the New South Wales Central Coast. From there the Linfox Linehaul team distributes product to Queensland, Victoria, South Australia and Western Australia. Linfox also manages local deliveries throughout NSW and warehousing and local distribution in Western Australia.

Continuous improvement The Sanitarium and Linfox team works on a range of continuous improvement projects to deliver ongoing efficiencies for the supply chain operation.

Linfox uses a combination of road, rail and coastal shipping for distribution. We keep monitoring and analysing ordering patterns across the eastern states to optimise the use of our fleet, ensuring we consolidate loads and streamline deliveries. Meanwhile, we implement the customer specified dashboard reporting and forecasting tool to deliver account management excellence.

The 4,000 kilometre journey from Berkeley Vale to Perth uses both rail freight and coastal shipping. Product is received at Linfox’s multi-user warehouse in Perth for local distribution.

Sanitarium produces a range of well-known brands including Weet-Bix cereal, So Good soymilk, Up & Go and Vegie Delights. The company is committed to linking good diet with good health.

Cereal movesSanitarium and Linfox continue their partnership.

Forklift Operator Augustus Collado.

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The DC during early stages of construction.

New DC deliversLinfox recently opened a new DC specifically designed to meet the individual requirements for its long-time customer SC Johnson in Malaysia.

Operating 24 hours/6 days a week, the DC

is 105,000 square feet with a 5,000 square feet customisation

area, 12 loading docks and the capacity to

hold 8,000 palllets of SC Johnson products.

Linfox Site Manager Gurucharan Singh said the DC was delivered on time and on budget for the customer.

“Our team successfully designed, built and facilitated a smooth transition to our new DC for SC Johnson, which is a significant achievement.”

“The DC is one of the best sites across South East Asia and features Linfox’s state of the art technologies, including warehouse and transport management systems that give SC Johnson a range of new efficiencies and benefits,” Gurucharan said.

Prior to the opening of the new DC, SC Johnson stock was stored across two sites – a Linfox DC and an external DC.

“By having all SC Johnson stock in one place we are in a stronger position to streamline operations and create greater time and cost savings for our customer,” Gurucharan said.

Operating 24 hours/6 days a week, the DC is 105,000 square feet with a 5,000 square feet customisation area, 12 loading docks and the capacity to hold 8,000 palllets of SC Johnson products.

Construction of the DC started earlier this year and was completed in July to meet its agreed go-live date in September 2013.

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Transport in IndonesiaSayap Mas Utama is our newest transport customer in Indonesia.

In November, 50 of our new four wheeler trucks began transporting our customer’s range of household products from two of their depots to small stores and wholesalers in greater Jakarta.

Indonesian Country Manager, Frank Findlow said, “We began rolling out this work in late September using our first five trucks. After successful implementation, the opportunity exists for more transport and warehousing work with Sayap Mas Utama.”

Sayap Mas Utama Distribution Manager, Vivin Kurniawati said, “We were seeking a professional transport service provider and we were impressed with Linfox’s comprehensive proposal. We look forward to working with Linfox in the future.”

“We are excited about this opportunity to work with this leading brand and look forward to a strong partnership moving forward,” Frank said.

This new work compliments our existing work with Unilever Indonesia and our 1,500 Linfox employees working in Indonesia will increase to cater for our customer needs.

Sayap Mas Utama is part of Wings Corporation which was established over 60 years ago and is one of Indonesia’s well-known brands. Sayap Mas Utama, is a leading local manufacturer and distributor of household, personal care and food and beverage products.

Veteran Driver Mick Hanlon and Coalition leader Tony Abbott.

Linfox employees receiving the new trucks at the Mitsubishi hand over ceremony.

One of our new four wheeler trucks.

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Scholarship boostThe Lindsay E Fox Scholarship at the University of Denver

has been extended and increased.

Linfox Founder, Lindsay Fox established a scholarship for a transportation professional to attend the Executive Masters Program at University of Denver’s Intermodal Transportation Institute (ITI) in 2011. The scholarship value increased from $15,000 to $20,000 per annum.

The Scholarship is designed to support the graduate education of the next generation of senior managers in the intermodal transport industry and has been extended until 2017.

Both private and public sector organisations are eligible for the scholarship and candidates are drawn from outside Linfox to strengthen the industry. The scholarship recipient must maintain above average grades during their executive program.

Lindsay Fox was a founding board member of ITI. Today Linfox CEO Michael Byrne, who is an ITI graduate, holds a board position.

Michael Byrne said, “Linfox has sent one or two senior managers to ITI each year for nearly a decade. It is an important part of our Linfox College’s commitment to lifelong learning for our people. The success of our business relies on our people gaining new knowledge and skills from around the globe.”

“The scholarship demonstrates the Fox family’s commitment to building the professionalism of our industry, not just the success of our business.”

ITI promotes a global, ethical seamless intermodal transportation system through education, research and outreach. It serves as a ‘think and do tank’ in collaboration with other parts of the University and with industry, government, academia and the public.

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Led by Linfox Asia Pacific Operations Training Manager Warren Kaeding, the tours aimed to evaluate training resources and ensure current courses met customer and business requirements. “We are developing our trainers to be the best in their field and updating training resources to give them the tools they need to develop Linfox drivers and warehouse teams.

“Training such as Train the Trainer, defensive driving and forklift operations have been expanded, and the Investigation of Work Health and Safety program has been introduced to ensure incident reporting helps us deliver continuous improvements across our sites,” Warren said.

Before joining Linfox in 2010, Warren worked with a diverse range of organisations to align business needs with industry leading training programs and systems, including the army, police force and his privately owned security firm.

Over the past year, the Linfox Operations Training department has also improved systems to centralise records of reviews, audits, procedures and program materials for trainers to access from any geographic location.

“In an effort to ensure our training operations are functioning at the highest standard, we have increased transparency by undertaking audits to improve team assessment measures and ensure we have the best trainers,” Warren said.

Warren Kaeding

Talking trainingOver the past 12 months, Linfox has conducted a series of site tours to identify opportunities to better align and

expand its growing suite of driver and warehouse training.

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Linfox wins SAP awardLinfox has won SAP’s Best Run Business Applications – Supply Chain Management Award - 2013

The award recognises the joint development of the Linfox Transport Management Solution (LTMS), in partnership with Linfox IT Team and SAP.

Linfox Acting CIO, Mark Johnson said that the project represents the first major stage in developing LTMS.

Mark said, “We now have a robust system based at our Hazelmere site in Perth which can be rolled out across our Asia Pacific operations in the coming years. It provides Linfox with a powerful integrated, standardised transport solution which will satisfy our customers’ expectations.”

Key featuresLTMS, which is based on SAP Transportation Management, is a reliable and flexible standardised system that allows Linfox to decommission existing systems and provide more cost effective transport management support to new and existing customers.

The system improves efficiency through better order management, freight and resources planning, freight execution and monitoring and full data capture.

“LTMS improves resources optimisation, for example with the ability to more easily share resources between our Business Units geographically,” Mark said.

“Importantly, the standardised LTMS can be implemented quickly.”

“Linfox’s goal is to improve our capacity to make timely deliveries, increase governance of freight activities, control costs and improve services to our customers.”

The LTMS development team involved Linfox and SAP resources from around the globe. The project began in February 2012 and went live in December 2012.

The invitation only event was attended by 500 senior executives from companies across various sectors, 50 of which were from the transport sector.

Linfox Contract Manager, Roshley Noronha received the award on behalf of Linfox and said the award highlights our strong relationship with Tata Motors and our people’s commitment to customer service.

“Linfox have built a strong relationship with Tata Motors over the past five years. With the best transit times in our sector, we carry automotive equipment

from Chennai and Bangalore to the Tata Motors plant in Jamshedpur, India,” Roshley said.

Acting India Country Manager, Malcolm Pereira says, “At Linfox, we are constantly working towards continuous improvement and we look forward to a strong and prosperous relationship with Tata for years to come.”

Linfox began working in India in 2005 and now has over 1,100 employees working for key customers such as Hindustan Unilever, Tata Steel and Asian Paints.

Tata awardsLinfox received an award for high performance in the long haul transportation sector at Tata Motor’s first Annual Suppliers’ Conference in Macau, China recently.

Roshley Noronha (centre) receiving award on behalf of Linfox from Tata Motors.

Linfox’s control room in Hazelmere.

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Cancer awarenessLinfox is working together with the Breast Cancer Network Australia (BCNA) and the Jodi Lee Foundation to help raise cancer awareness.

Linfox and BCNA have had many connections over the years. Together we have raised funds to support people and their families affected by breast cancer and importantly we have helped to transport their goods right across Australia.

Fleet Manager Environment & Special Projects Mick Best said, “During Breast Cancer month in October, our team helped to transport BCNA’s iconic silhouettes to Sydney, producing a powerful display of the impact breast cancer has on our community.”

BCNA Sponsorship and Communications Manager Kirsten Pilatti thanked the Linfox team for their incredible support.

“The logistics of moving our silhouettes to the banks of the Sydney Harbour could not have been possible without your team. We are forever grateful for the continued support of all the team at Linfox,” Kirsten said.

As part of the health and wellbeing program at Linfox, Nick Lee from the Jodi Lee Foundation has presented information about bowel cancer prevention to employees across Australia. Nick established the Foundation after his 41 year old wife, Jodi lost her battle to bowel cancer.

General Manager Resources East, Tom Hannaford said the initiative was well received by employees and 400 screening kits were distributed.

Resources and Industrial President Ian Kent said, “On average 1,700 Australians are killed in road crashes

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BCNA employees with Linfox drivers. From left: Thea Cargill, BCNA National Sponsorship & Communications Manager Kirsten Pilatti, Driver Sinesa Deura, Kate Dixon, Kim Hyman, Driver Troy Finn and Marita O’Keefe.

each year while approximately 5,000 die as a result of bowel cancer.”

CEO Michael Byrne said, “We are proud to be aligning ourselves with organisations that are actively working to reduce the number of people affected by cancer. At Linfox, we are working on a broader, long-term health and wellbeing program that will focus on diet, exercise and the prevention of diseases such as cancer.”

www.linfox.com

Peak Season 13-14

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