DGL (Aust) & (NZ) Pty Ltd

Group News May, 2013

From our Managing Director

Another financial year end is rapidly approaching and to be honest, I will be pleased to see the end of it.

This year has been one of the most difficult we have had. A number of our business units have

continued to experience reduced volumes from their customers that are aligned with the building

industry. What affects our customers, affects us. We are constantly working with our customers to

ensure we maintain their service offer whilst managing our costs as we do not wish to become a

casualty of the current economic climate. The many challenges that we have had, we have met head on

and will continue to do so until we see the economy turn around and volumes start to increase.

We have had some tough times with the operational performance of some of our warehouse and fleet

operations. This performance has been well below what is required and expected of them. Then there

are some operations that excel and deliver a very high standard of service to our clients – I am grateful

to all of these operations for the hard yards they put in to achieve this result. We must continue to

improve in all that we do and I ask the operations that have fallen below the standard required, to pull

together and work hard to achieve the expected performance. When we all get there, the challenge will

be to maintain this level of service and conformance. We must aim for 100% adherence to all processes

and procedures.

We have continued to see new clients use our services and a number of customers have returned after

leaving us, which is very pleasing indeed. We have also recently been successful in obtaining the South

East Queensland distribution contract for Stramit. The commencement on March 18 was not as smooth

as we would have liked. This was due to the lack of the required specialized equipment being available

at short notice. The equipment is now almost all in place and this will settle the operations down. We

will then be able to deliver the service levels expected of us.

I would like to take this opportunity to welcome all of the new people we have engaged through the

Stramit QLD contract and GWA Bathrooms and Kitchens contract based at their Eagle Farm distribution

centre. DGL has worked with GWA to amalgamate the DUX hot water business and Caroma Bathroom

Products into the one distribution network through the use of our existing trucks and pods. DGL were

able to offer significant savings for the GWA Group through this amalgamation and the operation start

up went very smoothly.

The NZ operations are performing extremely well under the management of Jonathan McFadyen and his

team. They are without question the best fleet operations in the DGL Group. They consistently meet all

of their safety requirements and performance targets. This team just keeps on setting the benchmark

that the Aussie fleet operations strive for. I look forward to the day we might be able to match them!

We have made great headway in the areas of personnel safety with many sites focusing on continuous

improvement to the processes and their performance. Most sites are now delivering a ZERO lost time

result. For this I thank all the employees that have supported our drive in this area and who are helping

us achieve this great result.

We have made a number of management changes in NSW and QLD. These changes will continue to

occur until we get the structure right through compliance to DGL processes.

We must improve in retaining our staff. Our turn over is well below that of our competitors, but it is still

too high and we need to address this. If anyone has any ideas or can identify why our turnover is

occurring, I would appreciate a phone call or a note from you, which will be kept confidential so we may

slow this rate of attrition down.

The Service/Maintenance Module that we developed has been live for several months and has proven

to be of great value. We now have the ability to monitor all fleet and assets are being serviced at the

correct intervals set by the manufacturers. I am pleased to say now very few go over the required due

date. We have a few stragglers that are being addressed but overall we are running at around 99%

compliance in this area. We still have servicing issues with some of our suppliers, which are being

addressed with them. If these are not resolved we will seek alternative arrangements to ensure our

servicing is done to the required standards.

One thing I am not pleased with is the appearance of some of our trucks/trailers and warehouse sites.

These must be to the highest presentation standard at all times. This is an area we are looking for a

significant improvement in. First impressions set the standard – it is what the customer sees.

DGL continues to grow, albeit a little slower than normal due to the economy and the difficult trading

conditions we have experienced to date. In saying this, we are strong and have the ability to ensure we

stay in this manner due to the number of assets we own and the business model we run.

I would like to apologize for absence of these newsletters. It has been far too long since the last one.

We know you have missed them as it was raised in our last staff workshop for fleet and warehouse.

We will circulate these again every three months. We encourage you to send us an article that you

might like to be included – please send this to head office.

On a final note the company is now over ten years old. We have been working on a length of service

policy and expect to have this finalized by the next edition. We will advise our policy then and recognize

those that have been a loyal and valued employee of DGL for 10 + years.

Regards

John WestJohn WestJohn WestJohn West

HSEQ—Safety is our No.1 Priority!

HSEQ Team is based at Head office Eagle Farm and consists of Kevin Moloney – National Safety,

Compliance & Training Team Leader and Annastasia Denigan – National HSEQ Manager.

The HSEQ team was represented at the recent Fleet and Warehouse conferences by Annastasia who

found this to be a great opportunity to put names to faces and to gain a broader understanding of the

business across the two divisions.

Current HSEQ projects

NHVAS accreditation systems - Update THE HSEQ team has been working closely with Michelle to develop the NHVAS reporting as part of the

KPI / Servicing module. Changes to this system are being made to ensure that the required information

is captured to ensure ongoing accreditation whilst attempting to make this a more efficient process at a

site level. Draft procedures for the changes made will be sent out shortly and all staff will be

encouraged to provide feedback to ensure that this system is as user friendly as possible whilst

maintaining reporting requirements.

What the HSEQ Team can offer support, assistance or advice in:

• Training – Need training completed? Need to know the DGL procedure for organising training?

• Injury Management - Initial injury notification, Ongoing injury management, Work cover wages

• Compliance – Fatigue Management, Heavy Vehicle Speeding, Load restraint, Dangerous Goods

Site visits Late last year site visits were conducted taking me to visit some of our NSW sites. Visiting sites located in

Newcastle and Sydney it was great to meet numerous employees and gain an understanding of daily

operations at these sites.

A special thanks to Herman & driver

Stephen Hebb for allowing me to go

out in the truck for half a day to watch

some ARC deliveries. This was a

reminder as to what these drivers face

on a daily basis whilst conducting their

duties. The knowledge learnt during

this excursion will greatly assist when

we are conducting compliance audits

on these tasks.

Safety Stickman To the right is the injury record from

April, 2013. DGL’s target is zero injury

however you need to play your part

and ensure you follow the processes

and procedures that will assist in

protecting you. If you are unsure of

the requirements, see your site manager or contact us.

Prepared by: Annastasia Denigan – National HSE Manager &

Kevin Moloney – National Safety, Compliance & Training Team Leader

Key Performance Indicators (KPI’s)…

Did you know?? DGL provides our customers in fleet, warehouse, OI & DUX operations with information that measures

our performance, the task to perform the work and their volumes?

This information is provided on a monthly basis. The information is taken from the run / time sheet

that drivers complete. It is very critical information – it reinforces how the operations are running and

where improvements need to be made on both DGL’s side and the customers. The KPI’s also trigger a

review with our customer when there is a significant change in the business – be it positive or negative.

Below is an example of some of the KPI’s that are measured.

This graph shows the tonnes, kilometers travelled, hours taken and number of drops by month.

The dotted line is the previous year’s results for the same period

DIFOT – Delivery in Full on Time

This graph shows the number of delivery failures by reason. The total delivery failures are then

compared to the total deliveries made & that gives us our delivery performance.

DGL’s target is to remain above 98.5%

GWA/DUX Operations…

As the weather gets colder we heat right up!!! It’s that time of year again no more daylight savings, no more after work beach session’s, time to rug up

and put the kettle on for most. Not for us down here at Dux/Brivis Braeside - Brivis being the market

leader in Australian built central heating systems. Its time myself, Cheryl and the boys roll up the sleeves

and get our hands dirty.

In winter we move more than double the freight we do in summer. This seasonal extreme brings out the

best in our team. Hard work and dedication have been the backbone to getting this site to where it is

today. Special mentions: Cheryl Jesson who has been here since the start of the contract with

knowledge and the motto of “if in doubt we can put it on a spread sheet”. Phil Gibbeson - not many

people can say they can consistently be up and functioning at 4:30am let alone making the expedition

up the Hume to ensure the Albury Wodonga area is serviced. Dirk Gibbons - the unsung hero of the

harsh and unforgiving Victorian countryside, living and working away from the site taking everything in

his stride even when the truck is full to the back door and every man and his dog in Bendigo want a

heater.

We have been at Braeside for just over 2 years, with continual growth on our minds we have the

ambition and will to move forward with DGL & GWA into the future.

Finally, I would like to wish all the other GWA sites good luck over winter.

Prepared by: Tim de Munk – Operations Supervisor Braeside

Fleet Operations…

Stramit Melbourne We are currently undergoing a major fleet appearance overhaul - a project I expect to take approx.

twelve months. Trailers and tray bodies are getting painted from top to bottom by brush and roller

which makes a huge difference to their appearance. One guy is doing this and doing a great job.

Volumes are fluctuating with very low troughs and very high peaks making for a challenge to control

costs on a daily basis. We are seeing runs spread further and further into country areas as Stramit

chases work to assist during these difficult times.

We have been successful in winning some return work from Iplex Albury on the daily shuttle which is a

great initiative for both the DGL and Fletcher businesses (for those who don’t know Fletchers owns both

Stramit and Iplex and many other building related businesses).

I thank all the team that make this operation work, and remind all to be safe during your daily tasks.

Stramit Adelaide Adelaide has seen some large volume decreases and hence the decision has been made to release a

truck to Perth to assist where it can be utilized better.

I give thanks to Mick and his crew for the upkeep and appearance of the fleet in Adelaide. They are very

fussy and take pride in the fleet appearance and it shows.

Stramit has introduced the Eziform business into this site which manufactures large sheet metal

products. It is now operational and I look forward to the challenge of delivering this product into the

surrounds of Adelaide.

We have also started a run which heads into the York peninsula, a little slow to take off, but hopefully

we will see some work there in the future.

Stramit Perth Welcome to Rena over in Perth who is taking care of our administrative tasks. I’m sure Jason the

contract manager is enjoying having assistance in this area.

Again a big thanks to the guys in WA who make the operation work, the KPIs (tonnes, drops, kms, etc )

in this region are some of the best around the country and worthy of noting.

Finally..

A big thanks to all at DGL Victoria, Adelaide and Perth for your constant effort and work ethic. Look

forward to coming out the other end of this economic downturn and seeing prosperous times for all

ahead.

Prepared by: Travis Cartwright – VIC/SA/WA Fleet Operations Manager

Stramit Queensland Well it’s just over seven weeks now since we began distribution for Stramit Building Products

Queensland.

Our new staff and drivers are starting to settle in and become acquainted with our customer’s products

and processes whilst the ex-Russell Transport employees have been instrumental in making the

transition fairly smooth with their assistance to the new members of the team. We certainly thank them

for this.

We faced a number of challenges including power failures which resulted in the fleet not being loaded

one evening, flooding and more recently an 80% increase in tonnes on the last day of April. One could

say there's never been a dull moment!

We now have 90% of the fleet in operation with the remaining steerable extendable trailer, rainwater

truck and two more double deck trailers arriving in the next two to three weeks.

Over the past three weeks we have welcomed another four new members to the Stramit /DGL Team.

These are Sue Singe - administration at Crestmead , David Gray - heavy vehicle operator at Crestmead,

Steve Barlow - Rockhampton Operations Supervisor and Tim Clark who has taken the role of Contract

Operations Manager at Crestmead. Previously Tim managed the GWA fleet operation at Wacol and

Eagle Farm. Matt McKenzie (see the Ruff Questions at the back) who was based at DGL Eagle Farm

looking after the regional and interstate transport, has now taken the role vacated by Tim at the GWA

contract.

On behalf of DGL, we wish everyone good luck in their new roles.

I would also like to thank everyone that has helped me in my role since Joining the company, you have

all been fantastic.

Some of the Stramit QLD fleet

Prepared by: Cameron Huxley – QLD Fleet Operations Manager

ARC St. Mary’s

DGL are currently in the process of upgrading the fleet. Some of the guys are taking fleet home to

repaint & clean the trucks to make them almost as good as New Zealand’s. Wash mats are about to

arrive – so we will be able to keep the equipment looking great.

Our team always works hard to pull together especially when it is busy and always ensure we get the job

done on time with minimal fuss – they just get in and get it done. A big thank you guys from Herman &

Pete for all your efforts.

Prepared by: Herman Kaczorowski – ARC St. Mary’s Operations Manager &

Peter Hand – ARC St. Mary’s Fleet Supervisor

Warehouse Operations… Queensland Over the past few months QLD has gone through some staff changes in almost all locations.

Sheldon Derwin has been appointed Eagle Farm Site Manager; Paul Schroder has been appointed Wacol

Site Supervisor and Jacki White has moved from Wacol to Acacia Ridge to join the Bradman St team.

Cherie has also started at the Bradman St warehouse in the CSO role due to Carol Mitchell taking

maternity leave as she welcomes her baby girl to her family. And last but by no means least - Kelly

O’Shea been appointed Townsville Site Supervisor.

I am sure all the above will do well in their new roles and from all of the QLD team we wish Carol all the

best with her new addition to the family.

Sheldon – Eagle Farm Paul - Wacol

Carol & Cherie – Bradman Street

Prepared by: Aaron Bardell – QLD Warehouse & Distribution Manager

Victoria Maria Street warehouse has had some new faces come on board and DGL welcomes them all.

Lee Chang was recently appointed Warehouse Supervisor at Maria St. Lee has been a great addition to

the team. We look forward to a long and successful career for Lee at DGL. Maria Street has been under

staffed since December and finally found a suitable candidate in Ka Sin Lay. Ka Sin brings over 20 years’

experience in warehousing. The addition of these highly experienced people to the team in Vic puts us

in good stead to move forward.

We are currently consolidating three warehouse into two (Altona is being closed). Once this is done it

will help us serve our customers better and it will make for more efficiency and put less strain on the

transport division with less pick up points.

Prepared by: Wayne Cox - VIC Warehouse & Distribution Operations Manager

NSW – Botany A strategy being applied on site currently is: Stop, Think, Identify, Control and Monitor - this outlines a

un-conditional focus on a job task and its outline. Prior to starting a job, all staff must undertake a

strategy to ensure:

1) That they maintain their quality of health and physical fitness. If a job is going to cause them

harm, the store persons have a duty of care to themselves and others around them. So if the job

is going to cause harm they must ensure that the task is locked out until a Supervisor is informed

so that the issue can be resolved in safer manner.

2) Ensure the current task is completed while maintaining the highest standards in satisfying

customer needs.

In the month of April, DGL Botany has seen increased handling of export/import containers, yet has had

no injuries since August 2012. The volume has increased but the culture has changed. The systems and

processes will also continue to change, but keeping in mind to Follow up, Follow Through and Finalise in

time, all process changes.

It has been a pleasure to see the progression of the site from February 2012 to now (ongoing) – the staff

changes, the process changes and the physical appearance of the site has changed significantly. Now we

have a site that promotes a friendly and effective team environment to produce a high standard of

performance to our clients.

Prepared by: Greg Niven – Botany Warehouse Site Supervisor

South Australia The end of April nearly sees the end of our "silly season" with all our major agriculture accounts very

active over the spring and summer period.

Landmark, United Phosphorous and Sumitomo have stretched our warehouse capacity to over 110%

this season. This number has now fallen to 82% and will continue to drop and settle to approx. 60% over

the winter. The squeeze on space has reared some potential compliance issues which I am currently

working through with Kevin to rectify. I thank all staff for giving their all during this time and look

forward to seeing everyone taking some time off for some well-earned R & R.

Prepared by: Steve Dixey - Gillman Warehouse Site Supervisor

Western Australia Business is booming in WA. As you can see by the photo below, they are now digging for iron ore at our

main gate! Not really, they are actually putting in a new sewer line from Komatsu who are re-

developing their site across the road from us.

WA staff changes: Jenny Parker has left and our new CSO is Jody Maunder who brings with her 8 years

in the transport industry. A special thanks to Mary Cox and Jenny Kleftogiannis for their expertise with

training. Raymond Stevens has joined us in the stores he replaced Michael Brierley who left mid-

February. Emma Dove, our only female store person, has also left and we are currently looking for her

replacement.

We have employed 3 new drivers Mark Geary, Aaron Bloom and Peter Smulders; Callum is very excited

about this as he now has a full complement of drivers to get his deliveries done!

Currently the Eagles and the Dockers are just outside the Top 6, but be warned, the season is not over!

Prepared by: Noel Rae – WA Warehouse Site Supervisor

OI Operations…

With OI changes to their staff rosters we have had to change our shifts to allow better synergies. While

the change to three shifts may have, initially, been unpopular with some, over time everyone will notice

they will have more personal quality time to spend with their families. It has also meant changes to the

supervisor’s roster. There will be an Operations Supervisor and two other supervisors covering the

twenty four hour day. Ricky McAlister has accepted the offer to take on the role as the second

supervisor.

Additional staff were needed to be employed to cover these changes in shifts. Please make these new

people feel welcome and part of the DGL OI team.

Over the coming weeks the diesel forklifts from both sites will be replaced with gas powered forklifts.

This will prevent the diesel exhaust particles settling on the bottles and save time on prep.

Remember to always take care and work safely!

Prepared by: Dallas Tunnah – OI Contract Manager

New Zealand

Kia ora DGL Australia !!

So far 2013 has been prosperous for our NZ operations with the addition of the Gliderol Garage Doors

contract and expanding operations through Dimond Roofing, gaining greater market share and

continuing to maintain their position as New Zealand’s leading roofing manufacturer.

The relationship between DGL and our customers moves from strength to strength as we seek to

continually improve our service offering and cement our position as a superior logistics provider.

The back bone of our operations are our six fleet supervisors located throughout the country. The team

is imbedded into our customers business and is tasked with ensuring their area of operations runs like a

well-oiled machine. We also welcome Dominique Harris to the team who looks after the NZ admin from

Auckland.

As a fleet based operation, our vehicle operators are at the coal face of our business and we rely on

them to conduct themselves in a professional and safe manner. The team work hard and I continually

receive feedback from customers on how our lads have gone the extra mile to help achieve the task at

hand yet performing the work safely. The supervisors work hard to mould and coach our operators into

professionals.

The remainder of the year will see vehicle replacements and innovative ideas rolled into the business

that will benefit DGL and our customers as well as expanding service networks and possible synergies

throughout the Fletcher Building Group.

A big thanks to the admin and IT teams in Australia for their continued support of our operations and to

Michelle Lawson for her continued support and direction.

Stay safe team, upwards and onwards

Prepared by: Jonathan McFadyen – Contract Manager NZ Operations

IT… I’m sure you are all aware of the itsupport@dglogistics.com.au email address. This address is provided

so there is a single point to communicate any IT problems. This address was set up so we could monitor

the tasks that require attention and more importantly, it’s a central location where these issues can be

referred to and analyzed. It is important to send all requests to this address as the person you are

sending the email to may be away or not able to respond in a timely manner.

Technology is forever evolving and it’s very difficult to keep abreast of what new and what’s a fad. The

IT crowd currently have many projects that we are looking at, for example we are looking at a revised

intranet with many new features that will enhance the ability for DGL Staff to carry out their job with

more ease.

Nicole in our head office recently asked us to find a phone headset for her, so she could wander the

office – answer calls and if necessary transfer them etc. – below is what we found!

Is this you Ben?

Prepared by: Trevor Chant – IT Manager

National Admin… There have been some recent staff changes that have seen some new faces in Head Office. Roxanne left

just before Christmas and Lisa Brown, who recently moved here from New Zealand, has taken over

Accounts Receivable. Skye also left late last year to have a baby (and now she is back in another role)

and (another Kiwi) Sharon Winterburn has replaced her in Accounts Payable. Welcome to Irene Allen

who has joined us as Business Analyst.

From 1 July 2013, the compulsory super guarantee rate will start to increase from 9% to 12%. This

means that DGL as an employer will pay more into your super. The first increase will take effect on 1

July 2013, increasing from 9% to 9.25% and then gradually each year until 2019 when it reaches 12%.

We now have the ability to email you your payslip. If you aren’t already receiving your payslip via email

and would like to do so, please provide your email address via your manager.

The Finance team are still focusing on the accuracy of the Monthly Profit & Loss Reports and one way

we can all assist is to make sure all PQU’s & POR’s are as accurate as possible. On behalf of the Admin

team, we would like to say a big thank you for the assistance and support everyone has given us over

the past few busy months.

Prepared by: Jenny Ball – Company Accountant & Kim Galic - Payroll Manager

Customer Talk, Rate Reviews & Claims…

I just wanted to share some feedback with you from a recent road trip visiting warehouse customers.

We still have a way to go in some sites - ensuring cycle counts are completed and communicated to our

customers and care is taken in stock, order and delivery accuracy. However, we received some very

welcome and positive feedback as well. The sites that stood out were:

Eagle Farm – in particular Carol Sullivan

Bradman Street – in particular Carol Mitchell (what’s in a name?)

Interstate – Matt McKenzie

Wetherill Park – big overall improvement noticed

Well done guys!! We often hear about the things that go wrong, and when a customer mentions how

happy they are I know you must be offering an exceptional service! Great job!! It is always nice to hear

positive feedback, so my challenge to you is that your name is on the top of that list in the next

newsletter. To make the challenge a little bit more interesting for you, I will offer to personally come

and fire up and cook a BBQ breakfast/ lunch for you and your team and might even bring along some

home-made chocolates (ask Head Office if that’s worth you putting in the effort).

All the Customer Rate Reviews have now been completed and implemented and are effective until the

end of the year. In November we will review ALL customer rate cards again, which will then become

effective as per 01-01-2014 and remain firm until the end of December next year. These rate cards will

be enhanced again as discussed in our workshop in Brisbane, to make them easier to read and also

including the LMS charge codes.

Claims As you are most likely aware, I have recently also taken on the responsibility of the claims for the

warehouse division. Although still finding my feet, I will come back to you with some ideas on how I

think we might be able to simplify and enhance this process and welcome any input or ideas you may

have. We have also managed to start pushing some of these claims back onto the customer. In cases

where damage was caused by poor packaging or inferior pallets, we have been able to reduce some of

the claims and put the responsibility back on the customer and their supplier.

Thank you in advance for your support in streamlining this process and I look forward to being your chef

at your next BBQ!

Prepared by: Muriel Pronk – Commercial Manager

Accidents & Incidents…

Skye Turner has recently returned on a part time basis to DGL after maternity leave to the position of

Claims Officer – handling all the motor accidents and associated claims.

A reminder to anyone who might be involved in an incident – please ensure that all details are obtained

from the other party, specifically their name, address, phone number and driver’s license number along

with the make, model and registration number of their vehicle. It is imperative that you take photos,

lots of photos - not only of damages but also of the scene and the surrounding area. The more detail

you can provide when submitting your paperwork, the easier our job is. Please, take care out on the

roads and for that matter, in all that you do. Your safety is paramount to us!!!

Prepared by: Skye Turner – Claims Manager

THE RUFF QUESTIONS

Staff Member

Matt McKenzie

Current Position

GWA QLD Contract Manager

Location/Site

Eagle Farm

Who you would LIKE to spend time on a deserted island with and why?

Jennifer Hawkins – because she would be a really good hunter & gatherer!

(Editor – sure Matt!)

Who would you NOT like to spend time on a deserted island with and why?

Hannibal Lector – in case he got hungry of course! Bit scary!

What is your favourite movie of all time?

Young Guns!

If you could be a celebrity who would it be and why?

Would like to be any of them purely for the money

What is your work background?

Worked for TLC for 4 years, then went into the building industry as a bricklayer for 7 years and then

came back to DGL now 7.5 years ago!

Where do you see yourself in ten years?

As Managing Director of DGL!

What do you do in your spare time?

Spend time as much time with my family as I can, love motor racing events and the Lions!!!

What is the most challenging thing about your job?

Managing staff and meeting customer requirements

If you could be a superhero, who would you be and why?

Superman – for the X-ray vision & to save money on fuel & shoes by flying everywhere

(Editor: thank you Matt, we look forward to the savings passed back to DGL and our Customers!)