When one of the world’s largest car manufacturers needed a logistics partner to distribute auto parts across its national dealer network in Australia, they called on Toll.
The Challenge
The national parts network for Australia’s largest full-import car company, Mazda, comprises a national parts distribution centre located in Victoria and 129 authorised dealers across the country.
After years of successfully partnering with Mazda to deliver automotive parts to dealerships in a limited capacity around Australia, Toll was selected to undertake a comprehensive analysis of the company’s supply chain.
Based on the findings, Toll was approached to create an Australian and trans-Tasman distribution solution to metropolitan and regional areas designed to meet Mazda’s specific requirements.
As well as being in line with Mazda’s overall strategy, the solution needed to have the flexibility and scalability to respond to the business’ changing needs.
The Solution
Toll worked in partnership with Mazda to gain an understanding of its channel to market, and identify opportunities to improve its existing supply chain to configure a flexible, reliable solution.
The key recommendation made for change was to allow Mazda’s wholesale parts operations and dealerships to move from a weekly to a daily stock ordering cycle.
This has improved Mazda’s ability to maintain a high level of service, and reduce their costs of servicing the dealership network through more reliable and cost effective transport modes.
Having a supply chain that supports the daily ordering of stock has allowed Mazda to greatly reduce its dependency on air freight transportation, which has in turn reduced freight-related costs.
To oversee the implementation and ongoing management of the new solution, three Toll transport employees are permanently based at Mazda’s national parts distribution centre in Somerton, Victoria.
Leveraging our global network, diverse service offering and the knowledge of our people, we delivered a solution that involved teams from across Toll:
- Toll facilitated a Lead Logistics Provider (LLP) solution that provides Mazda with a single point of contact and dedicated team of supply chain professionals for all their Australia Pacific transport and warehousing needs.
- Toll allows Mazda to service all dealerships (out of next day linehaul reach) the following day through their airfreight network. Off-peak road express services allow dealerships to return freight to the national parts distribution centre in a timely and cost effective manner.
- Toll has extensive experience and knowledge in automotive metropolitan deliveries. Their ability to break-bulk linehaul vehicles into metro set runs to meet early delivery windows provides Mazda dealerships the ability to plan their day and maximise their service operations.
- Toll is coupled with the Toll metropolitan couriers to provide interstate road and rail services. Through dedicated linehaul and consistency, transit reductions have allowed service excellence by pairing interstate and metropolitan services.
- Toll has enabled Mazda New Zealand to vastly expand their services offering and order turn around for Vehicle Off Road (VOR) parts. Previously Mazda New Zealand ordered parts from Japan – now, the business has a far more reliable and expeditious supply chain through Australia.
- Toll has more than 20 strategically placed depots in Queensland; this allowed Mazda to improve transit delivery times and reduce damage to their freight. NQX services travel direct from Melbourne to the receiving depot, by-passing Brisbane, which greatly improves overall service.
- Toll has an operational model that allowed Mazda to reduce transit times for parts being shipped to a dealership. Toll’s ability to provide and monitor the road and sea legs of any given journey provides greater visibility.
The Results
As our automotive operations continue to evolve to meet market demand, our partnership with Mazda remains an impressive testament to the kind of company Toll is; a group of businesses that are individually excellent and collectively unbeatable.
Listening to and understanding our customer’s requirements enabled us to create a specialised supply chain solution that optimised Mazda’s national distribution network – improving efficiency and lowering transport-related costs.
Toll staff have become an integral part of the on-site team at the Mazda Somerton site, working continuously to strengthen the relationship between Toll and Mazda.
As a business we not only provide a diverse range of services to our customers, but a united Toll front with the capability to simplify even the most complex problems.
Customer testimonial
“The dedicated and committed team at Toll has worked with us to firstly understand our business, and then develop solutions for our needs. This has delivered benefits for both of us.
“At Mazda, we have been able to increase and improve service levels to our dealers, while keeping costs down. Toll has been able to strengthen its relationship with Mazda as we continue to grow our business in Australia”
Aldo Schepis
National Parts Manager, Mazda Australia