Year in Review
CEO Michael Byrne says, "The 2010 financial year has been challenging and successful for Linfox Logistics."
Linfox Logistics is committed to safety, our values and our 2015 business strategy. This helped us deliver a strong business result despite the exceptional economic challenges of the 2010 financial year (FY10).
Safety
The recently revised Safety Policy is designed to ensure that everyone in the business is firmly focused on safety leadership, safe behaviours and systems so that we continue on the journey to achieve our Vision ZERO.
During FY10 we reduced our Lost Time Injury Frequency Rate (LTIFR) by 29 per cent. This is a significant reduction, but missed our target of cutting the LTIFR by 30 per cent for the first time since introducing Vision ZERO four years ago. Our Medical Treatment Injury Frequency Rate fell by a substantial 39 per cent, well ahead of target for FY10, but the fall in our Motor Vehicle Accident Frequency Rate was unfavourable to target.
We must all share responsibility for continuing our journey to achieve Vision ZERO.
Business growth
We consolidated the business during the global financial crisis, in line with our 2015 strategy. This allows us to deliver a strong financial position from which we can grow and focus on the needs of our customers.
- Despite the economic challenges, your commitment to our customers and to our business strategy helped deliver a strong financial performance against our plan for FY10.
- The review of our 2015 strategy, which included customer feedback, confirms that we have built a firm base to return to growth as economies recover in the coming financial year.
- Early in FY10 we signed one of the largest contracts in Linfox’s history to manage the Australian supply chain for National Foods. The 10 year contract adds nearly 300 people to the Linfox team and we are investing substantially in state-of-the-art warehouses, fleet and IT systems.
- During FY10 our work in the resources sector in Western Australia grew substantially with Linfox supporting BHP Billiton’s vast Iron Ore and Nickel operations across the state, as well as a new contract with Agility Logistics to provide land transport for the massive Gorgon gas field development project.
- We also developed our new gas distribution network for BOC in Queensland, New South Wales, Victoria and the Northern Territory.
Innovation
The implementation of our FoxTrax system represents a substantial investment in sophisticated vehicle monitoring. The new system generates significant data to boost the efficiency of our vehicle fleets, more closely assess their environmental performance and better manage compliance with the many regulations governing heavy vehicle operations.
FoxTrax also integrates with Linfox’s other fleet management systems to enhance the efficiency of operations.
Environmental leader
During the year we reported that Linfox had reduced its rate of carbon emissions by 28 per cent between 2007 and 2009, significantly exceeding the initial 15 per cent target of our 2007 environment strategy one year ahead of schedule.
Everyone in the business contributed to this outstanding result. Our new target is to reduce our rate of carbon emissions by 50 per cent by 2015, based on our 2007 emissions. We will continue developing new ways to achieve this goal.
Recognition
While our focus is on improving safety and our business performance, Linfox people won acknowledgment from the business world. A survey of business leaders by business magazine, BRW selected Linfox as ‘the most respected’ company in Australia’s transport sector in 2009. The magazine noted that, “Respect is a necessary attribute to run a successful business”.
Twelve months ago Linfox was also recognised at the logistics industry’s SMART awards with an award for excellence in transport logistics for developing our WebViz system, which boosts the efficiency of our retail delivery systems.
Linfox people
Developing our people’s skills and knowledge is a priority through Linfox College, our graduate and cadet programs and operational training.
I look back on FY10 with a great sense of pride in your achievements and I am grateful for the team we have at Linfox.
I would like to thank all of you for your efforts. It is important for us all to remain firmly focused on achieving our goals for this new financial year.