The Toll Group have announced a major restructure of their divisions in Australia. As of July 1, the current six separate divisions will become five, with the changes designed to align the divisions more precisely with the freight contracts in which the company’s involved.
Toll reckon the changes will reduce crossover of service offerings between divisions, increase best practice sharing and collaboration across business units, and reduce complexity and costs.
Toll Express, Toll NQX and Toll Linehaul & Fleet Services will be added to Toll Domestic Forwarding. Toll Liquids and Toll Transitions, due to the contract nature of their activities, will be moved into Toll Global Resources. Parts of Toll Intermodal are to be incorporated into Toll Global Logistics and the Queensland freight forwarding operations will be merged into Toll NQX. Toll Global Express and Toll Global Forwarding remain unchanged.
Confused? Well the people at Toll have been really helpful and put together a schematic diagram to show us just how the new structure looks:
“This is a logical outcome given the progress we have made in our One Toll program and from our ongoing focus on returns, said Toll Group Managing Director, Brian Kruger. “We need to ensure that we are best placed to build on the key competitive advantages in our domestic network businesses, while also ensuring we are as aligned as possible with our customer needs in our contract logistics businesses. While cost reductions are not the key driver of these changes, we do expect to see meaningful benefits from this restructure together with other cost saving programs within Toll.
“We have strong businesses, particularly in Australia, but it is critical that in the current challenging market we reduce complexity and costs, improve our productivity and build on our strengths. This restructure will help mitigate near-term ongoing margin pressures as well as ensuring that we maximise the leverage that our company has to any improvements in the external environment.”