During a recent visit to SAP’s headquarters in Walldorf, Germany, Linfox leaders and I met with SAP CEO, Christian Klein and his team. We discussed forward-looking topics including sustainability tech, artificial intelligence and other innovations set to shape the future of supply chain management.
Linfox has enjoyed a longstanding partnership with SAP since 1999 and we are one of Oceania’s most proficient users of SAP’s Extended Warehouse Management system.
Several Linfox distribution centres are fully automated through SAP’s digital warehouse solution, with technologies like automated storage and retrieval systems (ASRS), robotic palletisers, and advanced goods-to-person solutions.
Better visibility on sustainability performance
Technology has always been a powerful enabler for Linfox, and I’m particularly excited about working with SAP and others to explore how their solutions can provide better visibility on our sustainability performance.
Reliable and accurate innovation will be key as we strive to achieve net zero emissions and we are committed to exploring this technology further.
Navigating AI with caution and curiosity
Experience has taught me to approach hyped new technologies with a healthy blend of scepticism and curiosity and this is certainly true for artificial intelligence (AI).
However, it’s hard not to be enthusiastic about AI’s potential to drive significant productivity gains across our operations.
Linfox is already using several AI tools, including number plate recognition to improve site security and prevent stock loss. We also use technology to scan point-of-delivery documents, removing the need for manual data-entry and to improve accuracy.
During my visit to SAP HQ, we explored SAP’s AI ‘co-pilot’, Joule, which will be embedded in the company’s cloud products. Christian explained that “Joule will know what you mean, not just what you say.”
Joule’s capabilities also extend to using optical character recognition (OCR) to extract data from shipping documents, regardless of their format.
With cautious optimism, we will continue to explore AI products that simplify our customers’ operations and improve their planning cycles.
SAP CEO, Christian Klein and Executive Chairman Linfox Pty Ltd, Peter Fox AM.
Championing Australian interests in Southeast Asia
Earlier this year, the Australian Government appointed me as one of ten Business Champions to represent Australian interests in The Association of Southeast Asian Nations (ASEAN) nations.
The first assignment took me to Thailand and Laos, where I joined Linfox International Group CEO, Ian Strachan, on a four-day mission led by Australia’s Special Envoy to Southeast Asia, Nicholas Moore AO.
Our message was simple: Australia is eager to deepen our trade and investment ties with the ASEAN region.
Linfox has proudly operated in Thailand since 1993 and in Laos since 2012 and our operations in these countries are central to our strategy in Southeast Asia.
Six of the eight countries where Linfox International operates are ASEAN member states and persistence and commitment have been key to our success here. After more than 30 years in Thailand, our team now holds Linfox’s largest operational contract, operating 12 sites and servicing over 3,200 stores daily.
Australia’s prosperity, security and economic future are closely linked with Southeast Asia.
As Australian Prime Minister Anthony Albanese stated during the ASEAN-Australia summit, “A fundamental principle of the ASEAN-Australia partnership is mutual benefit, and we all gain from a regional economy that is more resilient and connected.”
The countries of Southeast Asia are among the fastest-growing regions in the world, poised to become major drivers of global growth in the coming decades.
For Linfox and Australia more broadly, there is a significant opportunity to be more substantial investors in Southeast Asia, capitalising on this growth potential and fostering stronger economic ties.
Building a sustainable cash-in-transit business
We have successfully completed the integration of all Armaguard and Prosegur Australia branches. This achievement marks the end of a 12-month process involving close consultation with our people, customers and trusted partners.
Integrating our branches was the final piece in incorporating Prosegur Australia to become one business and improving process efficiencies.
We are firmly focused on building a sustainable future for our cash-in-transit business in partnership with our partners and customers.
Finally, I wish you a joyous festive season and new year.
Stay safe.
Peter Fox AM
Executive Chairman
Linfox Pty Ltd