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Case Study

Total Logistics Solutions

Total Logistics Solutions, an enterprise that began its life, in 1997, with two business partners, a small office in St Kilda Road, one customer and no staff or equipment.

Today, in contrast, TLS services in excess of 170 principal clients, drives its operations from a 16,000 sqm facility at Brooklyn, has a substantial range of equipment, as well as associates around Australia. Describing itself as a as a business engaged in interstate linehaul, local distribution, warehousing and 3rd part logistics, TLS has a range of customers which includes manufacturers and retailers with their own DCs who need to ship product to their national outlets.

Jaix Logistics Software has provided all of Total Logistics Solutions IT requirements

"In this day and age, transport is as much about information as anything else. To succeed, operators must use IT wherever they can. And those computer systems should be installed before a logistics business starts to grow and not as a response to that expansion."

These, at least, are some of the strong views of George Kara, a founder and director of Melbourne headquartered Total Logistics Solutions (TLS).

In terms of his company’s growth, Mr Kara says that a further ingredient in success is to “do what your customers and prospective customers want you to do in the way they want things done. That as opposed to simply offering a sort of 'one size fits all’ approach to logistics.

TLS

Our logic has always been to look at the people we work for – or would like to work for – and to see how we can adapt our business to better meet their demands. And we believe that’s a far better way of doing things than having some rigid strategic plan.

For instance, for our very first customer we provided a fairly fundamental sub-contracted transport service. Over time, however, we adapted our operations so that today we are also providing the same company with warehousing, wharf cartage and container unpack services.

Which is not to suggest that such constant adaptation is easy, particularly as you get bigger. But for us, its an approach that delivers business results, helps win new business and, most importantly, powerfully helps customer retention.”

Another facet of that ‘adaptation’ philosophy sees TLS purchasing equipment – such as trailers, prime movers and rigids – that are totally dedicated to a particular customer’s requirements. The bulk of those assets will then be located at the end user’s premises. With the aim being to work them on, as closely as possible, a 24x7 basis.

The day-to-day mechanics of the TLS service is equally adaptable. In some instances they will warehouse the customer’s stock. In other cases they will collect stock and cross-dock this at their Brooklyn facility. While at the other extreme, pick up and delivery, around Australia, will be from the principal’s own DC.

But what of Mr Kara’s potent views on computing? As he notes,

“for eight years we have been partnering with Adelaide headquartered Jaix Logistics Software, looking to that firm to provide all of our IT requirements. Those computer systems are an integral part of our total business. We don’t see them as being a mere add-on or just a back office tool. Rather, they are essential to everything we do."

"We have always worked with our systems supplier as a partner. And we know that the continued success and growth of TLS depends on their capacity to help us with all of those things we need help with.

TLS Truck

If you like, we need them to adapt just as we do. But there it really helps that they are transport people first and technology folk second.

When talking about computing, it’s also key to note that our view is that we want to automate everything we can.

That automation delivers better and more consistent service to our customers. It ensures we have less stressed and much happier staff. It means new staff are much easier to train. And it also guarantees there are far less hassles when a key staff member leaves us.”

Which brings Mr Kara on to IT’s contributions to one of his favourite topics – ‘information’.

As he suggests, “to say we have a passion for that subject is an understatement. And it’s why our corporate slogan is ‘value through information’. We feel that strongly about it.

To put it into some simple terms, it’s very easy to have a bunch of people sitting together and working on the jobs we do for a particular customer. They all know something about what has to be done. But no one knows everything that’s relevant.

If you can effectively combine all of the collective knowledge you have a powerful operation. But where there is a lack of communication there is also going to be potential of very real problems."

"So the secret is to use IT to control all of that information. Which means there is no guessing, no assuming, no inconsistencies, no shortfalls in performance and nothing that is overlooked, forgotten or ignored."

“Again the result is far better customer service and, for TLS itself, enhanced productivity and margins.

Which all adds up to my view that information is the key to modern day logistics and that IT needs to be the driver.

So if we had a ‘mission statement’ I’d suggest it would be to ensure we are the best managers, controllers and users of client-critical information.”

But while making IT an integral part of a logistics business, Mr Kara advises doing that right up front and not as a response to subsequent growth.

“If I had my time again, I would have installed the Jaix Logistics Software systems from day one. No matter how much of an overkill that may have seemed. The applications then become an imbedded part of the business from the outset."

"When you bring in computing later in the company’s life, you are necessarily changing the status quo. And change presents certain challenges.

What’s more, in the early days, staff and management have much more time to learn the system’s functionality and capabilities. But when you are all flat out expanding, that sort of time is at a premium.”

Although as Mr Kara concedes on this point, “hindsight is a pretty useless thing.”

What he equally acknowledges is that without their Jaix Logistics Software TLS would now need something like 30 or more staff to handle the paperwork of the company.