Low-Code Solutions for Logistics: A Toll Group Case Study

Ecommerce has undergone unprecedented growth over the last five years, forcing logistics organisations to adapt by fast-tracking their digital transformation in an effort to better support employees and customers. For Toll Group, a subsidiary of Japan Post and one of the largest integrated logistics companies in the world, this meant modernising its IT landscape to provide a better experience for its 20,000 customers across 150 countries.

However, within Toll Group’s IT landscape, numerous systems of record were in place, catering to processes such as warehouse and logistics management to serve its customers globally. New software development requests at Toll Group underwent the traditional programming and waterfall delivery route. This created significant challenges as prolonged software development timelines and constraints on IT talent were not conducive to the rapid pace of change required by the industry.

The need to rapidly modernise its IT infrastructure to fortify its competitive edge and rapidly adapt to evolving customer needs was clear, and in 2021, Toll Group embarked on its IT modernisation journey. At the centre of this transformation effort was low-code development, with Toll Group seeing its potential to streamline processes and optimise operational efficiency and profitability, ultimately leading to securing its competitive advantage quickly and cost-effectively.

Evaluating Low-Code Solutions: A Collaborative Approach

Toll Group began its low-code exploration by conducting extensive research, drawing insights from the leaders in Gartner’s Magic Quadrant for Enterprise Low-Code Application Platforms. In navigating the diverse array of available platforms, the evaluation process featured close collaboration with leading vendors to tailor solutions to the organisation's unique needs. Workshops and proof of concepts engaged key stakeholders from IT security, enterprise architecture, development, and business units, fostering a comprehensive understanding of low-code development's potential for Toll Group.

Structuring a Low-Code Capability

Toll Group ultimately selected Mendix as the preferred vendor for its low-code capability. After partnering with Mendix, Toll Group assembled a team to collaborative on initiatives with divisional IT teams and business counterparts. Central to this effort was a key focus on governance to ensure consistency and quality across applications. Additionally, Toll Group emphasised establishing reusable architecture and making early investments in a standardised design system to streamline development processes effectively while maintaining a unified brand identity.

Measuring Value

Transport and logistics businesses operate with thin profit margins, prompting careful review of every element from a cost perspective. Deliverables ultimately must be commercially viable, addressing both customer and employee experience objectives, with a key focus on differentiation. Google Analytics was integrated to provide valuable insights into application usage, ensuring low-code initiatives aligned with broader organisational goals and key metrics such as revenue, efficiency, and productivity.

These insights revealed that Toll achieved an impressive 40% reduction in both project delivery time and costs. This integration facilitated continuous improvement and optimisation efforts, contributing to the overall success of Toll's strategic objectives.

Quick Wins Demonstrate Tangible Value

During the evaluation phase, Toll identified diverse business areas that could benefit from low-code development and careful consideration was given to selecting the team’s first projects.

A range of use cases required new solutions, including customer-facing web apps, progressive web apps (PWA) for field staff, and eventual mobile applications. These applications spanned global logistics in Asia to global forwarding in 28 countries and 500 sites.

In mid-January of 2021, Toll Group’s risk and audit team was undergoing a significant update to their audit process, rendering a longstanding legacy risk management and audit application obsolete. The team initiated low-code development in early February and was able to deliver the application in just six weeks at a cost of less than $30K. This application was used by operations managers to effectively document specific risks and implement mitigations while routing these to relevant management levels.

A notable success was a PWA for the automotive logistics division in Singapore. Traditionally, when Toll Group vessels arrived in a port, vehicles were unloaded, and employees manually recorded VIN numbers, took photos of damage, and compiled documentation. The new PWA built with Mendix transformed this process, allowing employees to use their mobile devices to scan VIN numbers, take pictures, and submit documentation in real-time, eliminating the need for paperwork and creating a more efficient process.

In early September 2023, Toll Group launched their legal capital review application, utilising a reusable module built by Toll Group for delegation of authority (DOA). This module, though complex due to varying approval workflows, mirrors the organisation's various approval levels. This emphasis on reusability at the onset of Mendix adoption paid dividends with a 40% reduction in project delivery time and costs.

Education and Communication

Continual education and communication were pivotal to Toll Group's success in transitioning from waterfall to agile software delivery with Mendix. The organisation hosted global hackathons to promote low code application potential, exposing participants to different working methods and showcasing platform capabilities. This commitment to education extended to the recruitment of new graduates to become Mendix developers, with a focus on a 9-month timeline for them to become productive contributors.

Looking Forward: Innovation and Differentiation

As Toll Group looks to the future, innovation and differentiation remain key objectives. The organisation recognises that low-code development with Mendix is not just about addressing current needs but also about preparing for future challenges. The ability to rapidly prototype and test new ideas positions Toll Group as an innovative player in the logistics industry.

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