SolutionsAsia Pacific June 2014

4 2012 24Streamlining operations

China knocks

Tesco growth

Defence rollout

SUPPLY CHAIN SOLUTIONS

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Achieving our vision ZERO strategy

Contents

Streamlining operations

Tesco growth

China knocks

Defence rollout

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4Chairman’s note 1

CEO’s message 3

Streamlining operations 4

Fuel growth 6

Linking the West 8

Achieving vision ZERO 9

Bunnings grows with Linfox 10

Tesco growth 12

Access Malaysia 14

Growth in Vietnam 15

Well stocked 16

Perfect brew 18

China knocks 20

Competitive advantage 22

Defence rollout 24

LeanFox at Lion 26

Supporting Big C 27

Committed to Indigenous employment 28

Morgan joins Linfox 29

Developing our people 29

As 2015 ebbs closer, it is most important for us to realise our 2015 strategic targets and begin the next planning phase, taking us, towards 2020.We have recently separated our Asian Businesses and formed a new Linfox International Board. The appointment of Gabrielle Costigan as CEO Linfox Asia, and Simon Crean and Bill Kelty as Non-Executive Directors, signifies our focus on our Asian businesses.As Gabby progresses through her “taking stock” phase of understanding where we are at, we will reposition ourselves in Asia to take advantage of the ever burgeoning Asian markets, and scale out our diverse south east Asian geographical footprint.In May, we announced the appointment of our new Chief Information officer, Morgan Hurwitz. Morgan’s critical appointment ensures we continue to develop cutting edge systems capabilities and apply technology where we can improve efficiencies in our business.

Morgan brings hands-on practical experience to developing our systems capabilities. The introduction of control rooms throughout our business is a high priority to our IT department, enabling us to bring visibility and management of our operations into real time.It is important for us to develop processing efficiencies by using tablets for the simple input of drivers’ electronic worksheets enabling real-time monitoring of our vehicles at work. The introduction of our SAP TM9 transport management system is also a huge project in enhancing the existing core Lindis system. There are also projects around our IT architecture and site dashboards for key performance indicators to be transmitted in real-time.

Planning for growthLinfox is at an exciting and critical phase of our development as a leading Asia-Pacific supply chain service provider.

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Investing in the futureInvestment in state of the art fleet and the training and development of our people has underpinned the winning of significant fuel distribution work along Australia’s east coast.Next month sees us opening a new multi-million dollar facility at Kewdale in Perth, boosting our growing intermodal rail freight business between Australia’s east coast and west coast. The facility also provides a state of the art food grade warehouse for our fast moving consumer goods customers supplying the West Australian market.The commencement and ‘Bump in’ phase of our Australian Defence Force contract is going very well. I would personally like to acknowledge the commitment of Gary Allen and his management team in all of their efforts in deploying a flawless implementation of this project. This is indeed one of the most important programs of work our company has ever embarked upon.

Our PeopleSafety in the workplace is of paramount importance. The remarkable improvement in our safety standards is to be commended to all, and our ‘vision ZERO’ journey continues to ensure we provide the safest workplace possible.In 2008 we made a strategic decision to be the industry leader in environmental stewardship. Our combined efforts through the Green Fox program have resulted in a 43% reduction in our carbon footprint. However, sustainability is about more than being green.I am very proud of the progress we have made, however, we must reset our environmental targets and focus our efforts on new efficiencies in our:• Motor vehicles and materials

handling equipment• Energy use in our buildings• Waste and recycling programs.

Thinking long term and integrating sustainable practices and policies helps us become more efficient. Being efficient lowers our costs, so that we can bring our customers the most cost effective distribution solutions possible.I am proud to be announcing the commencement of a new health and wellbeing program, ‘The Healthy Fox’. We want to ensure our employees enjoy good physical and mental health. This includes information on the right nutrition, exercise and lifting awareness of mental health, and being there when our people need someone to turn to. Everyone needs work-life balance.Linfox will continue on our ‘vision ZERO safety journey and attain the safest workplace possible. We must renew our sustainability goals and ‘Green Fox’ program we started in 2008. We need efficiency gains and productivity improvements making us the most cost effective in our industry. We must also pull together and be leaders in making sure we have the most dedicated workforce that takes pride in our collective achievements.

Peter Fox - Chairman

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A decade of growthBuilding deep customer relationships remains a key part of our success.

As announced recently, in December I will leave Linfox Logistics after almost nine years as CEO. I am proud to have partnered with my colleagues and customers over that time to drive safety, people development and customer service to the very highest levels in our industry. Our business has become a highly sophisticated supply chain specialist delivering continuous improvement to customers across the Asia Pacific region.Safety firstSince establishing our vision ZERO safety strategy Linfox people have achieved a massive 95% reduction in our Lost Time Injury Frequency Rate. This is a remarkable improvement and a credit to everyone at Linfox.Safety is the cornerstone of our business and this is fundamental for our people, our customers and the communities we operate in. We recognise we can never be complacent about safety and that we must continue to strive to achieve vision ZERO.Since 2007 we have also reduced our rate of carbon emissions by over 43%, an important contribution to the environment and for the business.The establishment of Linfox College and our Operational Training team ensure that Linfox develops smart cutting-edge solutions for customers. Our people are encouraged to learn and develop throughout their careers so that they and our business remain

at the forefront of our industry as technology develops at a rapid pace.

Strategic growthA focus on Asia, Australia’s resources sector and investment in continuous improvement have driven strategic growth in the last five years. Today, two thirds of our people live and work in Asia and introducing our CEO Asia, Gabrielle Costigan to Linfox will ensure that we continue to develop and nurture our footprint in Asia’s growth economies.We formed the new Government and Defence Business Unit to manage our new work with the Australian Defence Force and to develop further opportunities with key government departments.In recent months Linfox has been awarded key petroleum distribution contracts in Australia, requiring a high level of expertise and investment in training and equipment. The last 12 months has also seen expansion in our work with leading retailers, particularly in Asia.This strategic growth has seen Linfox develop as a leader in supply chain service delivery and grow as an employer, with the number of fulltime equivalent roles nearly tripling to 23,000 people in the last decade.

Underpinning our success has been the close working partnerships we have formed with our customers. We share strategic and operational relationships to ensure excellent service and ongoing improvement in your supply chain operations. These partnerships are fundamental to our ongoing success.Linfox is well advanced in achieving its 2015 strategy goals and much of my focus over the next six months will be on developing the strategic framework for the next five years. With significant changes in technology and in our economic environment, I am confident that Linfox is well placed to take advantage of further opportunities to remain a leading Asia Pacific supply chain business.

Michael Byrne - CEO

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Streamlining operationsLinfox designed the new Bungarribee DC to streamline operations for Arnott’s.

The official opening of the Bungarribee DC for Arnott’s in Sydney’s Western suburbs marked a new step in Linfox’s decade long association with the iconic food producer.Linfox Chairman, Peter Fox thanked former NSW Premier Barry O’Farrell for officially opening the new facility.

Peter Fox said, “Today’s official opening hails a major step forward in our partnership with Arnott’s, with five DCs across Australia efficiently handling Arnott’s products.” “This Bungarribee DC was designed to streamline operations and improve efficiencies for Arnott’s.” “Our new location brings us more than 10 kilometres closer to Arnott’s Huntingwood production facility, thus reducing travel by more than 100,000 kilometres in any given year,and ultimately avoiding 151 tonnes of greenhouse gas emissions.

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Building a sustainable business underpins our culture at Linfox. We have already reduced our rate of carbon emissions by 43% since 2007.”Former New South Wales Premier Barry O’Farrell opened the new facility. He said the new warehouse delivered substantial economic and environmental benefits for Arnott’s national distribution network. He said the new warehouse would lead to the creation of more jobs in Western Sydney. “It’s a huge vote of confidence in Western Sydney.”

Arnott’s VP of Supply Chain, Craig Funnell said, “Supported by our supplier partners, Arnott’s has been proudly manufacturing in Australia for 150 years. The success of our 10-year logistics partnership with Linfox lies in both companies’ continuing drive to invest in innovation and best-practice engineering at our sites. We congratulate Linfox on their excellent new facility.”The Western Sydney operation will employ over 100 people and is a key national distribution hub for Arnott’s famous range of food products.

“Today’s official openinghails a major step forward

in our partnership with Arnott’s.”

From left: Arnott’s VP of President Asia Pacific Ümit Subaşı, former NSW Premier Barry O’Farrell, Peter Fox and Lindsay Fox.

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Linfox retail fuel delivery operations have grown substantially in Australia’s eastern states this year.Glen Ranford, Linfox’s General Manager - Petrochemicals & Industrial said his team is committed to delivering safe operations and new efficiencies for the fuel industry.

“Our vision ZERO safety strategy is respected throughout the dangerous goods industry,” Glen said. “And the development of a cutting-edge TM9 transport management system for our fuel operations will provide complete visibility and new efficiencies. This leverages systems we developed with SAP in our resources business in Western Australia and Queensland.”Training is critical to fuel operations and Linfox team members receive fuel-specific training as well as dangerous goods and regular driver training from Linfox’s in-house team of specialist trainers.

Fuel growthSafety, training and state-of-the-art equipment are at

the heart of new growth in Linfox’s fuel business.

Linfox Fuel Driver Neil Grant.

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“This has added 200 people to our team and more than 40 new vehicles to the fleet.”

Linfox fleet is now delivering fuel to service stations for BP in Brisbane, Sydney, Newcastle and Victoria and for Shell in Victoria. “This has added 200 people to our team and more than 40 new vehicles to the fleet,” Glen said. “The new fleet will include 20-metre b-double sets in place of 19-metre b-doubles, introducing new efficiencies to the operation by increasing payload and reducing carbon emissions.”

New vehicles include state-of-the-art ABS and EBS braking systems for added safety.Linfox has a wealth of experience in the fuel and dangerous goods sector with other operations in Hong Kong, Malaysia, South Australia and remote mining regions in Western Australia and Queensland.

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The new facility, located at the Kewdale Rail Freight terminal east of Perth, will dramatically boost Linfox’s rail capabilities and strengthen freight links between Australia’s east and west coasts. Linfox Linehaul President, Mark Mazurek said the new facility will replace Linfox’s existing rail depot and various multi-user sites in Perth. “The new Kewdale freight facility and warehouse will link directly to the rail terminal, offering rapid access for inbound and outbound container deliveries thereby streamlining Linfox cross-dock capability,” said Mark. “Linfox will transition some key customers, including Arnott’s, Heinz and Lion Dairy and Drinks to the new facility in July.”

Smooth transfer Linfox will partner with Australia’s leading rail operator, Pacific National to coordinate efficient container transfers between the rail terminal and the multi-user warehouse. .“The Pacific National partnership broadens our service capabilities and prepares us for the future growth of rail freight throughout the network,” said Mark.“It also allows us to maximise container weights and access purpose-built cross docking, container and trailer marshalling facilities.”“Linfox Linehaul has invested further in specialised equipment to manage container movement around the site, including a new reach stacker, yard tugs and specialist container skel trailers.”Smart warehouse features The 80,000m2 facility will incorporate a distribution centre and a multi-customer warehouse, designed to house over 25,000 pallets.

“The warehouse features a temperature controlled storage area, a high security area and overflow capability for peak season storage,” said Mark. “Investment in security infrastructure, including a high-tech authorisation system, CCTV surveillance and onsite security personnel will protect our customer’s security sensitive products.”

Multi-unit collaborationThe Linfox Property Group, Operational Implementations team along with the FMCG and Linehaul Business Units led the design in collaboration with the key Linfox customers and suppliers. “Linfox employs experts from a range of disciplines to design innovative solutions for our customers,” said Mark. “Optimising our supply chain , preparing for the future growth of the WA market and expanding Linfox’s services were the key priorities throughout the design and build process.”“We’re excited about the new opportunities this facility offers Linfox and our customers.”

Linking the WestLinfox is on track to launch its new high-tech warehouse and Linehaul facility in Western Australia in July.

“The Kewdale warehouse links directly

to the rail terminal and cross-dock facilities,

offering rapid access for inbound and outbound

container deliveries.”

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Group Manager Resources East Ben Pudney said, “We’ve operated for 12 months without a recordable injury for the first time since this contract commenced in 1997.”We have proved that it is possible for us to perform our work without injury to our people.Key ingredients To reach its safety goals, the Linfox BHP Billiton Olympic Dam contract team worked in three main stages. First was to re-establish safety fundamentals.“We believe it’s important to lay down a strong foundation of basic safety principles and ensure they are clearly communicated for our people to follow,” said Ben. Second was to further develop our safety culture.

“Our approach became more targeted. For example, we enhanced driver induction and training and involved our team in developing their own Life Preserving Rules so they assist to shape our safety culture at Linfox.”“Thirdly, our safety focus was broadened to include the introduction of DriveCam and a Health and Wellbeing Program as well as other safety initiatives.”It is critical to continually maintain and improve our safety programs. At Linfox we use our Safety Leadership Journal to support us to do this.

Our work with BHP BillitonOur team of 130 across three sites transports bulk materials, general freight and fuels into BHP Billiton’s Olympic Dam Mine and moves copper, uranium and silver off-site. Group Manager Safety & Sustainability, Andrew Niven said, “It is a considerable effort from Linfox BHP Billiton Olympic Dam contract team to have achieved this result. There have been many trailer loads moved and containers packed and transported over vast distances without a single injury.”

Our vision ZERO journey Our vision ZERO safety target commits to achieving ZERO Fatalities, ZERO Injuries, ZERO Motor Vehicle Incidents, ZERO Net Environmental Emissions and ZERO Tolerance of Unsafe Behaviour & Practices.At Linfox, we have a commitment to the safety of our people, customers and the communities in which we operate. vision ZERO is about setting simple safety rules and guidelines, taking responsibility and being accountable. CEO Michael Byrne said, “Over the last seven years, Linfox’s vision ZERO strategy has achieved a 95 per cent reduction in Lost Time Injuries.” “We are incredibly proud of this achievement that brings us closer to Linfox’s vision ZERO target. This result requires every person, every day, to make the right decisions about working safely. It is a credit to our safety leaders and the entire team” he said.“I congratulate the BHP Billiton Olympic Dam contract team for achieving this significant milestone in our journey towards vision ZERO,” said Michael.

Achieving vision ZEROThe Linfox BHP Billiton Olympic Dam contract team achieved a TRIFR Total Recordable Injury Frequency Rate of zero recently, a significant milestone in Linfox’s vision ZERO journey.

Our BHP Billiton team in South Australia.

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Bunnings grows with LinfoxAustralia’s Bunnings Warehouse home improvement chain has reappointed Linfox to manage deliveries to its east coast stores.

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The new three plus two-year contract continues to develop Linfox’s specialised fleet and systems for Bunning’s deliveries.Chris Carbone, Linfox’s General Manager – Consumer said a key feature of the contract in year one is the opening of three new Bunnings DCs to service our customer’s growing market.“Our team worked very closely with Bunnings to oversee the smooth implementation of their new DCs at Lytton in Brisbane and at Eastern Creek in Sydney,” said Chris. “The new Lyndhurst DC in Melbourne will open in September.”

InnovationLinfox will work closely with Bunnings in the coming months to improve supply chain operations with a number of innovations. These include a new transport management system adapted for Bunnings’ requirements and the phasing in of Linfox’s in-cab communication tablet. The tablet combines various on-board communication devices into one easy-to-use device and is now being piloted in a number of operations.

A Linfox team of 40 operates a fleet of 32 vehicles with equipment specially designed to efficiently transport pallets of varying sizes to stores in specified time windows. Linfox also operates interstate transfers.Bunnings operates more than 250 stores across Australia.Chris said, “Linfox’s commitment to safe and efficient operations with continuous improvement underpinned our strong partnership, which began in 2008.”

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Tesco growthRetail giant Tesco Lotus has opened its

first regional distribution centre in Thailand’s Khon Kaen province.

Tesco Lotus operates more than 1,600 outlets across Thailand, from express stores stocking everyday convenience items to hypermarkets offering groceries, apparel and household goods. Linfox Founder, Lindsay Fox attended the DC opening alongside Tesco Lotus CEO, John Christie in May.

Linfox Country Manager, David Ames said the opening of the facility marks the expansion of Linfox’s long-term partnership with Tesco in Thailand. “Linfox will distribute ambient, fresh and frozen products from the new DC to more than 390 Tesco outlets in Thailand’s North East.” said David.“The DC facility spans 56,200m2 and can house up to 30,000 pallets making it one of Thailand’s largest distribution centres.”

Linfox Founder, Lindsay Fox and Tesco Lotus CEO, John Christie attended the opening of the new distribution centre with Tesco employees in May.

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“The DC facility spans 56,200m2 and can house up to 30,000 pallets making it one of Thailand’s largest distribution centres.”

New Linfox team members at Khon Kaen.

World-class facilityTesco invested more than £42 million into the new facility, utilising state-of-the-art equipment and eco-friendly technologies. “The team has worked very hard to ensure a seamless transition and minimal interruptions to service.” Linfox Thailand’s central control room utilises vehicle monitoring technology and live CCTV feeds to track Tesco deliveries in real-time. “The control room monitors the location, efficiency and security of all vehicles operating through-out Thailand to provide real-time delivery updates”, said David. “We have also successfully transitioned Tesco’s transport management system to improve resource utilisation, route planning and operations management for Tesco.’

Long-term partnershipLinfox began its relationship with Tesco Lotus in 1994 and has worked with the retailer through periods of rapid growth throughout Thailand. Today, Linfox employs a team of over 1,900 employees to distribute dry, ambient and fresh produce from six Tesco distribution centres to Tesco outlets across Thailand. “Linfox and Tesco share a joint commitment to safety and continuous improvement,” said David.“Both companies are also committed to employing and developing local talent to support the local community and ensure the future sustainability of the business.”“Linfox looks forward to supporting Tesco as it continues its growth throughout the region.”

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The purpose-build facility, located in Selangor State near Kuala Lumpur, will be the headquarters for Linfox’s Malaysian and Singaporean operations. “The new facility demonstrates Linfox’s commitment in Malaysia,” said Malaysia Country Manager Sajiq Iqbal.“Selangor is Malaysia’s wealthiest and most developed state, offering excellent infrastructure and access to major rail, sea and road networks,” he said.

Control hub

The new office houses Linfox Asia’s first regional control room and customer briefing centre. Control Room Project Manager, Mark Stephenson said the room monitors Linfox activities throughout Malaysia and the region, 24 hours a day, seven days a week.“The facility offers first-rate security, with real-time CCTV footage from across our operations to ensure our employees and our customer’s assets receive the highest level of protection,” said Mark.

The new facility will utilise fleet-monitoring technology to provide Linfox customers with real-time location and service updates from across Asia. “In time, the control room’s capabilities will be expanded to enable monitoring and reporting on fleet performance, including fuel consumption,” said Mark.“Live weather and traffic updates, and links to emergency services will allow us to quickly respond to any incidents that may impact customer service delivery and safety,” said Mark. “The facility will also enable us to link into our customers’ own transport management systems to optimise route planning and resources.”Linfox Malaysia, the Linfox Supply Chain Solutions Group and the Linfox Asset Protection Group collaborated on the design and implementation of the facility.

Access Malaysia

Linfox launched its new high-tech Malaysian head office in April.

“Selangor is Malaysia’s wealthiest and most developed state, offering excellent infrastructure and access to major rail, sea and road networks.”

Malaysia Country Manager, Sajiq Iqbal and the team officially open the new Linfox Malaysia Head Office.

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National Commercial Manager Dieu Ai Chau and Country Manager Scott Croll.

Growth in VietnamLinfox recently became the first foreign company to be

registered in Vietnam’s Quang Binh Province.

Linfox’s Country Manager Vietnam, Scott Croll said the business had worked with Quang Binh People’s Committee to complete the business licence.

“The People’s Committee recognised that a well-established logistics company has the potential to help develop the province’s economy, with growth in employment, infrastructure and trade,” Scott said.Located in north-central Vietnam and at one of the country’s narrowest east-west points, it is around 120 kilometres from Laos in the west to Quang Binh’s deep water port at Hon La. The Province is also well served by major roads and rail.

Scott said that the People’s Committee had shown great professionalism in considering Linfox’s application for a licence.“They recognised that Linfox is prepared to invest in infrastructure, equipment and jobs. Linfox can bring a high level of safety and training to local employees.”There are a number of promising business opportunities in Quang Binh as Linfox seeks to expand its footprint in Vietnam. Linfox began working in Vietnam in 2005 and employs over 700 people working with customers Unilever, BlueScope Steel and Phu Bia Mining.

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Well stockedAustralian retail giant, Myer has

reappointed Linfox to provide nation-wide logistics services for the next five years.

Linfox Driver Michael Lovett.

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Myer is Australia’s largest department store, operating more than 60 stores across Australia. The multifaceted contract incorporates metro shuttle and interstate transport from Myer’s Regional Distribution Centres to stores in New South Wales, Victoria, Western Australia, South Australia and Queensland.Linfox also home delivers to Myer customers throughout South Australia. Linfox National Retail Manager, Michael Naylor said Myer is one of Linfox’s foundation customers, with the relationship spanning more than 30 years.

“Linfox’s strong partnership with Myer is sustained by our continued commitment to improving efficiency and investing in new fleet and technology. “We work closely with Myer to regularly evaluate their logistics model to ensure they receive value for money and maintain excellent stock levels.” New fleet Linfox has invested in 34 new vehicles to service Myer’s logistics requirements. The new fleet incorporates a combination of prime movers, trailers and rigid vehicles.“We’ve expanded the fleet to accommodate increased volumes in key states including New South Wales and Victoria, said Linfox Manager, Craig Street.“The new fleet mix is designed to cater for Myer’s diverse product range from garments to furniture and cosmetics,” he said. Linfox has worked closely with Myer to tailor its fleet mix to suit unique store requirements.“Strong scheduling processes and a flexible service ensures we can respond to special requests and accommodate peak trading periods such as Mother’s Day and Christmas,” said Craig.

Neat featuresThe new store delivery vehicles feature overhead fashion rails, specifically designed for garment transportation. The rails are mounted to the vehicle roof, allowing garments to be easily transferred into the truck.Each destination store has a matching fashion rail, allowing garments to be seamlessly transferred from the vehicles to Myer’s racks.“Reducing the manual handling of garments has significantly increased efficiency at both ends of the supply chain and ensures garments remain well-protected during transportation,” said Craig.

“Linfox’s strong partnership with Myer is sustained by our continued commitment to improving efficiency and investing in new fleet and technology.”

Linfox Driver Peter Doerenberg.

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Perfect brewLinfox has extended its warehousing and

transportation contract with iconic Australian brewer, Carlton & United Breweries (CUB) for a further 2 years.

CUB produces some of Australia’s most popular beers and ciders including Victoria Bitter, Carlton Draft and Strongbow. Linfox Group Manager CUB and Packaging, Frank De Cata said Linfox’s strong relationship with CUB has seen the company through periods of tremendous growth.“Linfox began working with CUB in the early 80’s, providing local deliveries throughout Victoria,” said Frank.

From left: Linfox driver, Gavin Mulvenna and Warehouse Operator, Irfan Bari at Linfox Linehaul, West Melbourne.

“Linfox provides CUB with warehousing and local

transport in three states as well as interstate linehaul services to ensure retailers and restaurants

are well stocked with CUB products.”

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Driver Philipe Santoni.

“Today, Linfox provides CUB with warehousing and local transport in three states as well as interstate linehaul services to ensure retailers and restaurants are well stocked with CUB products.”Customised serviceLinfox operates out of six CUB sites across New South Wales, Victoria and Tasmania, incorporating a combined 87,000m2 of warehouse space. “Products are picked and packed onsite delivered by a composite of Linfox fleet direct to CUB customers,” said Frank.“During peak volume periods our team of 250 employees increases by around a third to ensure customer demand is met.”

“Linfox Linehaul also delivers packaged and keg beer from the Melbourne’s Abbotsford Brewery to Western Australia and the Northern Territory via rail, with the empty kegs being returned to Victoria and New South Wales.”Continuous improvementA shared commitment to safety and continuous improvement is central to the companies’ long-term partnership. “Linfox and the CUB Logistics Management team regularly review our services and safety targets to ensure we deliver the highest standards to CUB,” said Frank. “The reviews analyse each aspect of our service and measure performance against key targets, including productivity, cost and fleet optimisation.”

“Safety is key priority and each site holds a weekly toolbox meeting to reinforce safety processes and encourage employees to suggest new safety measures.”Linfox President FMCG, Clive Barrett said Linfox and CUB share a strong strategic partnership. “Our team has worked well to support CUB’s position in a changing drinks market sector. We have also forged a strong partnership with CUB’s parent, global brewer SABMiller.

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The Unilever DC in Jakarta, Indonesia.

China knocksA new partnership between Linfox and

Chinese company, HNA Group aims to expand Australia’s access to Chinese markets.

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The HNA Group operates China’s fourth-largest airline, Hainan Airlines. The carrier manages around 500 aircraft across more than 570 domestic and international routes.

Linfox Airports Group executive chairman, David Fox said Linfox is delighted to collaborate with HNA on common business areas including aviation, logistics, airport development and freight.“The partnership presents strong opportunities for Avalon Airport and Victoria,” said David.“Australia is enjoying strong growth in international tourism with visitation forecasted to grow by 7.1 per cent annually for the next nine years.”“Our key priority is to establishment commercial passenger flights and air-freight services between Avalon Airport and China over the next 18 months.” A memorandum of understanding was signed in April by representatives from both companies at an event attended by Australian Prime Minister, Tony Abbott, Victorian Premier, Denis Napthine and Minister for Trade, Andrew Robb.“The Australian government’s support is testament to the value this partnership presents for local employment and improved access to Chinese markets,” said David. “We look forward to collaborating closely with the HNA Group and the Australian and Chinese governments to ensure the success of future operations.”

“Our key priority is to establishment commercial passenger flights and air-freight services between Avalon Airport and China over the next 18 months.”

From left: Linfox Airports Group Executive Chairman, David Fox; Chairman of HNA Group Mr. Chen Feng; Victorian Premier, Denis Napthine; Australian Prime Minister, Tony Abbott.

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Competitive advantage Linfox Healthcare Logistics will extend its contracts with several

multinational pharmaceutical companies in 2014.

Linfox Healthcare Logistics provides end-to-end logistics services for leading healthcare companies at its national DC in New South Wales.

Linfox Healthcare Business Manager, Sarju Shah said the team has established a reputation for providing an adaptive, customised service that meets complex industry demands.

“Our services cater to customers operating in biotechnology, clinical trials, pharmaceuticals, nutrition, medical devices and equipment,” said Sarju.“We regularly receive excellent feedback from our customers who are impressed with our diverse services and high level of customer care.”

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“Linfox Healthcare has differentiated itself by offering several value-add services to complement the traditional warehousing and distribution model.”

Full serviceLinfox Healthcare provides full ‘order to cash cycle’ services, incorporating warehousing and distribution, to customer invoicing and accounts receivables.All Linfox services are underpinned by a quality framework. “Linfox Healthcare has differentiated itself by offering several value-add services to complement the traditional warehousing and distribution model,” said Sarju.“For example, one major global pharmaceutical customer engages Linfox to manage customer invoicing and debt recovery, product price

changes, returns and product recalls.” “We also manage government importing and exporting requirements, from obtaining permits to ensuring export orders meet destination country requirements.”The team has also engaged Linfox’s preferred warehouse management system provider, SAP to develop solutions to improve inventory and dispatch accuracy. Customised facilitiesThe 29,000m2 distribution centre is specifically designed for the healthcare industry, with the capacity to house up to 30,000 pallets in multi-temperature storage facilities.

“Security-sensitive product lines are received in separate secure docks and held in a vault which is monitored by Linfox’s state-of-the-art surveillance equipment,” said Sarju.The Linfox team works hard to accommodate special customer requirements. “For example, one of our global customers is due to launch a new temperature-sensitive fertility product at the end of this year.“To accommodate the product, Linfox is constructing a customised biomedical freezer to be maintained at - 25°.”

Linfox Customer Service Representative Leigh Wilson.

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The large-scale project incorporates the nationwide warehousing and distribution of all army, navy and air force inventory within the ADF’s Joint Logistics Network, with the exception of explosive ordnance services.Linfox President Government and Defence, Gary Allen said Linfox will employ more than 600 new people to carry out the long-term contract.

“The team has already rolled-out six of the planned 25 new Linfox sites across Australia,” said Gary.“The project execution phase is hitting all targets to date and we’re well on track to meet our implementation goals.”

Multifaceted projectLinfox will utilise all modes of transport, including air, road and rail to facilitate the local, intrastate and interstate transport of ADF inventory across Australia.“Warehousing and road transport will be managed by the newly established Government and Defence business unit and the team will partner with Linfox Linehaul for distribution support,” said Gary.

Defence rollout Linfox has begun implementing the Australian Defence Force’s warehousing and distribution contract, awarded to Linfox in December last year.

Linfox Linehaul recently transported a fleet of M113 Armoured Personnel Carriers from South Australia’s’s Edinburgh military base to a training exercise.

“The project execution phase is hitting all

targets to date and we’re well on track to meet our implementation goals.”

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“Express freight company, StarTrack will also provide specialist transport services to complement Linfox’s warehousing and distribution activities.”

Safety firstLinfox and the ADF are both strongly committed to upholding Linfox’s Vision Zero safety policies.“Establishing a strong culture of safety at each site will be a key priority throughout the project execution phase,” said Gary. “All employees are trained in Linfox’s safety procedures and we have a large team of dedicated health and safety representatives to ensure our targets are continuously met and improved.”

Richard ConronGeneral Manager – Government & Defence

Richard Conron joined the Linfox team implementing the ADF’s warehousing and distribution contract in 2013, having worked in senior leadership roles across the freight and logistics industry.

As general manager, Richard oversees key elements of the contract including operations, human resources, health and safety, commercial affairs and security.

“We’re currently implementing the roll-out of Linfox warehousing and distribution services to more than 20 ADF sites across Australia,” said Richard.

Linfox employs all modes of transport to service the contract across five states, ensuring no two days are the same.

“I’m fortunate to be working with a highly-energised and proactive team who are excelling under intense time pressures,” said Richard.

“There’s a real sense of satisfaction that comes with working on a project like this. You feel like you’re contributing to a greater goal and that is very rewarding.”

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LeanFox at Lion Linfox’s LeanFox program is delivering improvements and benefits at Lion’s The Pride multi beverage production facility and warehouse in Auckland, New Zealand.

Left to right: Puneet Sablok, Giles Emmerson, Jackson Edwards, Karen Pahulu and Wendy Mallowes at The Pride Brewery in Auckland.

The LeanFox continuous improvement program trains employees to improve productivity and reduce operational costs by recognising inefficient systems and waste.

LeanFox mentor, Wendy Mallowes said a team of LeanFox trainees is applying the program to Linfox’s warehousing and transport operations at The Pride. “Five Linfox employees recently passed their LeanFox Greenbelt exam and must now successfully implement the program before they can graduate,” said Wendy.

“The team is well on its way to meeting the requirements and we’re already seeing the benefits throughout Lion’s Auckland operation.”

Tangible benefitsLocated in Auckland, The Pride produces some of New Zealand’s best-loved beers, ciders and RTDs.Wendy said the busy and complex site is an excellent training ground and numerous improvement ideas have been identified.“Our motto, ‘small changes for big improvement’ recognises that even minor tweaks to our operations can have a big impact when measured across the supply chain,” said Wendy.“For example, team members have suggested changes to the layout of the wrap staging area to eliminate congestion, improve flow and reduce mixed pallet errors.”“Another team member identified improvements to our training and induction program for pick-staff.”

The team members are also encouraged to contribute suggestions, big or small, to an Ideas Board located in each operational area.“Employee ideas are reviewed and added to a value stream map which plots the best ideas and identifies opportunities to eliminate waste,” she said.

Asia Pacific rolloutThe LeanFox program will continue to be implemented across Linfox’s Asia Pacific operations. “LeanFox will soon be introduced to Linfox’s Distribution Centre in Auckland where we provide warehousing for Fonterra’s brands and ingredients business,” said Wendy.“The program is also being implemented in Vietnam and China.”

Our Big C team in Thailand

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LeanFox at Lion Linfox’s LeanFox program is delivering improvements and benefits at Lion’s The Pride multi beverage production facility and warehouse in Auckland, New Zealand.

“Linfox’s streamlined service provides Big C with improved efficiencies and greater visibility across their supply chain.”

Supporting Big C Linfox is supporting Thai retailer, Big C

as they transition to new warehouse facilities.

Big C operates convenience stores as well as large-scale supermarkets offering diverse products, including fresh produce and pantry items, clothing, hardware and appliances. Linfox will provide interim warehousing and distribution of Big C frozen and chilled food products at its multi-user distribution centre in Bang Pa-in, north of Bangkok. Linfox Thailand Operations Manager, Nina Russell said strong sales growth and store expansion has led Big C to construct two large warehouses in greater Bangkok. “Linfox will assist Big C during the transition by providing interim logistics services to ensure their 454 stores remain well-stocked,” said Nina.

One stop shopBig C was impressed with Linfox’s efficient, one-stop-shop service. “Previously Big C had utilised several logistics suppliers across multiples locations to warehouse and distribute their products,” said Nina.“Linfox’s streamlined service provides Big C with improved efficiencies and greater visibility across their supply chain.”“Performing daily communications, reporting and management through a single provider will also reduce double-handling and employee work-load.” “Linfox is delighted to support Big C on this project and we look forward to establishing a long-term partnership.”

Safety champsLinfox Thailand has a strong reputation for our proactive approach to safety and training.“Big C were also impressed with Linfox’s commitment to the health and safety of our employees and the community,” said Nina. “All Linfox Thailand employees are trained in Linfox’s Vision ZERO safety procedures.”“Weekly toolbox meetings ensure these procedures remain top-of-mind and give employees the opportunity voice safety concerns or offer suggestions to improve standards.”

Our Big C team in Thailand

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Committed to Indigenous employment Linfox has significantly boosted Indigenous employment since the Indigenous Employment Program (IEP) began in 2010.

Linfox’s commitment to Indigenous employees.

Linfox’s IEP is structured to ensure eligible employees receive the necessary training and workplace support required to maintain a strong retention rate.Linfox is committed to work with internal and external stakeholders including staff, customers, Indigenous communities, government agencies and partners to ensure our Strategy succeeds by creating opportunities, building positive futures and changing lives.Linfox HR President, Laurie D’Apice says, “The Program is fully supported by Linfox Management who has a deep interest in closing the employment gap between Indigenous and non-Indigenous Australians.”“The Program is about making Indigenous employees feel part of Linfox from their very first interactions with the Program. We want to provide employees with opportunities to

achieve and provide encouragement which is vital for positive change to really happen,” he said. Fresh approach Linfox’s new Indigenous Engagement Manager, Seona James will expand on the success of our IEP bringing new energy to the recruitment of Aboriginal and Torres Strait Islander employees and focus on engagement and retention strategies.Seona is a proud Yorta Yorta woman from central Victoria and has extensive experience working with many Indigenous communities.“I’m very excited to be managing the Linfox IEP and helping individuals flourish. The employment opportunities Linfox offers Indigenous employees are real and accessible,” she said.“There are many Indigenous people who want to achieve and when a company like Linfox is genuinely committed to increasing Indigenous employment it’s the perfect environment for success,” Seona said.

Linfox Indigenous Engagement Manager Seona James.

Linfox Driver Adrian Deemal, working on BHP contract in Cloncurry, Queensland. .

“The employment opportunities Linfox offers Indigenous employees are real and accessible.”

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re-enforced management techniques that I currently practice and introduced new and varied methods that are cutting edge around the world. The opportunity to gain knowledge of best practice through case studies from the world’s leading companies was invaluable,” he continued. “I look forward to implementing some of the new management techniques and sharing ideas gained with my fellow Linfox employees.”

Developing our people

At Linfox, educating our people to become outstanding business leaders is essential to our organisation.

Linfox provides a selection of Managers with the opportunity to participate in the General Management Program (GMP) at the Harvard Business School in Boston.This year General Manager Linehaul Kris Talevski, Group Manager– BHPB Iron Ore Gary Nurick and General Manager - Consumer Chris Carbone attended the program. Organisational and People Development Manager Tracie Maulden also attended and met

with Harvard Professors to invite them to Australia to develop our leaders across Asia Pacific.Working with global leadersThe 2014 Harvard program consisted of 128 participants from 39 industries and 33 countries. “We were exposed to high calibre training and were addressed by guest speakers, including former Prime Minster of Australia, Kevin Rudd said Gary. Kris said, “The course

From left: Linfox’s Gary Nurick, Kris Talevski, Tracie Maulden and Chris Carbone.

Former CIO of Shell Australia, Shell Aviation in London and Orica, Morgan has sound experience in diverse international business networks, with responsibility for global service delivery and IT across 80 countries.“I am excited to join Linfox, a leader in technology with a strong focus on safety. I look forward to leading the Supply Chain Solution and IT departments,” said Morgan. As the former CIO of Orica, Morgan led the team to win the Telstra ITSM Project of the Year award.

“The award recognised the globalisation of an IT service project we delivered which improved IT and operational performance world-wide and delivered value-add through IT,” Morgan said.Linfox Chairman Peter Fox welcomes Morgan to Linfox.“I look forward to Morgan’s contribution in continuing to lead and create innovative new technologies which will assist in providing the value that our customers require,” said Peter.“He joins Linfox at an important and

critical time when we are implementing significant new systems and applications for our customers across the Asia Pacific,” he continued. Morgan says, “From speaking with others, a strong sense of accountability and respect for people are values that are core to Linfox, and ones which I also place a high degree of importance.”With a love of sailing, skiing and kite surfing, Morgan is married with two children and lives in Melbourne.

Morgan joins LinfoxLinfox’s new President Supply Chain Solutions and CIO, Morgan Hurwitz joins Linfox and brings more than 20 years’ experience in developing strategies, implementing leading technology across a range of businesses globally.

Morgan Hurwitz.

www.linfox.com