Transport and logistics

The plea
Melbourne-based Thomas Transport had an established reputation in the transportation of chemicals, automotive parts and packaging supplies. But 10 years ago when the margins in transport got squeezed, its owner Mark Thomas didn't see any future continuing as just a transport company so he branched out into warehousing, storage and distribution. His decision was well received by his clients and a new contract with Coca Cola really sealed the company's force in the logistics industry. They do such a good job that now his clients are requesting his services interstate, so the plan is to replicate their operation along the eastern seaboard, opening warehouses in Sydney and Brisbane within the next 12 months.

The challenge
The Commonwealth Bank Business Health Check shows that expansion is the way to go for Thomas Logistics. The challenge will be in finding the right staff and getting the capital to fund the venture interstate. Mark has been proactive in tackling the technology issues so vital in the logistics industry, but is looking for even more cutting edge technology that can help him exceed the status quo.

Advice from our business mentor: Michael Rutledge — Rutledge Engineering
Rutledge Engineering is Australia's leading provider of professional audio visual equipment and integration that started from the lounge room of a rented house almost 25 years ago. Michael Rutledge was a sound engineer who turned his passion for audio into a national success story.

Business tips from the floor:

1. The harder you work the luckier you get.
2. Look after your suppliers and establish a relationship of trust.
3. Find your passion because it never feels like you're going to work.
4. Grandma's advice — 'look after the pennies and the pounds will look after themselves'.
5. Stay at the forefront of technology — there's less competition and more profit.

Advice from business consultant 1: Christian Kazamias — Xora
Xora is the easy way to monitor workers, vehicles and assets in real time on a GPS enabled mobile handset. Thomas Logistics is in the process of rolling out the Xora GPS tracking system to all its drivers, with help from Christian Kazamias.

Xora business tips:

1. Travel reports will give you exact movements of all the staff with their handsets.
2. It provides logs on time as well as completed jobs.
3. Jobs can be dispatched or emails sent with job details — even from the client.
4. The mobile handset becomes a productivity tool.
5. It eliminates manual forms and any requirements for extra hardware.
6. It lowers fuel costs, overtime, and expenses.
7. It improves customer service and customer retention by using efficiencies in technologies.

Advice from business consultant 2: Brian Birley — Pace Corporation
With the upcoming move interstate, none of Mark Thomas's own people are too keen on relocating, so he wants some advice from business mentor Brian Birley, about the best way to staff the new operations.

Business tips:

1. Values are core to your business success.
2. Starting an interstate office requires an understanding of state based culture.
3. You must be clear about your own culture and values first. With your key leadership team, pick five words that define what you do and how you do it and add some supporting values.
4. Find a company that has similar values to yours, that is also in a position where they are finding it difficult to get to an interstate route and acquire them. That way you have a ready-made business.

Advice from business consultant 3: Tim Connors — Telstra
Mark Thomas wants to ensure he has the very best technology and communication tools available for when the business expands interstate. Tim Conners from Telstra has all the latest on Telstra's new IP Video Collaboration service.

Business tips:

1. Convergence is the coming together of all your technologies into one, with the IP and Video collaboration, all connected via Next G and via Telstra's Next IP Network.
2. Communicate effectively with key staff members in each state with IP Video Collaboration — all systems and documents can be shared in real time.
3. The Telstra IP Network will allow Thomas Logistics to have its own network, to better connect its business sites as well as its mobile sales force.
4. Data is transferred more quickly and is less costly.
5. No more paper.

Costs

Telstra
With Telstra's IP Video Collaboration solution you can organise face to face meetings in real time with staff, customers and suppliers from various locations, share and edit documents, present concepts and approve changes with contacts across Australia or the world.

Work from the office or on the road as Telstra's Video Collaboration solution is under-pinned by the Telstra Next IP network and Telstra Next G network — providing the world's largest fully integrated national fixed and wireless network. Now you can work with the freedom you need.
For more information visit www.telstra.com/business

Xora MRM Technology
Xora can increase productivity up to 35 percent. Pay less than $40 per month on your Telstra phone account. Go to http://telstra.xora.com

Pace Corporation
For help in creating an effective business plan, go to www.pacecorp.net or call (03) 9888-6549.

Contact details:

Rutledge Engineering
Contact: Michael and Sandy Rutledge
Title: Owners
Location: Melbourne
Phone: (03) 9488 1500
Website: http://www.rutledge.com.au

Thomas Logistics
Contact: Mark Thomas
Title: Owner
Location: Victoria
Phone: (03) 8587 3600
Website: http://www.thomaslogistics.com.au

Xora
Contact: Christian Kazamias
Title: National Sales Manager
Location: NSW
Phone: 0448 195 607
Website: http://telstra.xora.com

PACE Corporation
Contact: Brian Birley
Title: Director
Location: Melbourne
Phone: (03) 9888 6549
Website: www.pacecorp.net

Telstra
Contact: Tim Connors
Title: Data Sales Specialist
Location: Melbourne
Phone: (03) 8647 0508
Website: www.telstra.com/business