NICTA and Tip Top ANZ make the most of “last mile” with smart logistics technology

Published on July 2, 2013

NICTA & TipTop

National ICT Australia (NICTA) and Tip Top Bakeries ANZ have taken out this year’s Smart Logistics Conference award for Excellence in Transport and Logistics, with software that has improved the efficiency of Tip Top’s fresh bread delivery network.

NICTA’s software – Cost to Serve Solution – was able to provide NICTA and Tip Top with a thorough understanding of how to optimise last mile logistics costs.

Last mile logistics is known as being a notoriously difficult problem to manage, model and control. As Tip Top distributes from 100 distribution centres to over 20,000 customer locations, approximately 80 per cent of its transport costs are on last mile logistics. NICTA and Tip Top’s winning entry lowered last mile distribution costs, reducing the distance driven by Tip Top trucks.

“Tip Top ANZ is thrilled to receive the Smart Logistics Conference Award for Excellence in Transport and Logistics with NICTA’s Intelligent Fleet Logistics project,” said Lis Mannes, Operations Director. “NICTA’s unique technological approach to understanding the complex interrelationship between customer locations & true delivery costs provided us with a deeper understanding of our extensive supply chain network.
As a result, through better asset utilisation, we have been able to significantly reduce greenhouse gas emissions and freight travelled.”

Rob Fitzpatrick, Director of NICTA’s Infrastructure, Transport and Logistics Team, said:

“This is a great result for a team of dedicated professionals from NICTA and Tip Top. Supply chain logistics have been studied for decades with every operator looking to eke out the last penny in efficiency.
NICTA’s optimisation team have entered this competitive space, introducing radically new technology to develop a truly innovative solution with great potential for the wider transport and logistics industry.”

Judges were looking for solutions that streamlined operations and improvements in cost control in the transport of goods or people, locally or internationally, and across transport modes.

“Congratulations to NICTA’s Infrastructure, Transport and Logistics team on this impressive result, which reflects our commitment to research excellence and wealth creation for Australia”

said Dr Phil Robertson, Acting CEO and Chief Operating Officer, NICTA.

Deloitte Access Economics independently analysed the transformation possible for Australian supply chains, concluding that if the leading 20 fast-moving consumer goods companies adopted NICTA’s intelligent fleet logistics technology, road transport costs could fall by around $800m a year, creating around $5 billion in value in the period to 2020.