1. Kings Transport P/L
National Head Office
24 Gardiner Road
Notting Hill, VIC, 3168
13 September 2007
Mr. Tom Evans
Nylex Group Logistics Manager
C/O: Nylex Water Solutions
20 Purton Rd
PAKENHAM VIC 3810
Re: Permanent Distribution Requirements –Nylex Water
Dear Tom,
Further to our recent discussions, I have put together a briefing that elaborates on the key
aspects of my recent presentation.
Responsiveness
Should Kings be successful in winning this work, there would be no greater priority in the whole
organisation than the implementation of everything proposed. Kings would dedicate senior
people within the business – e.g. General Manager, Group Finance Manager, Operations
Manager, Major Account Manager, etc – to this implementation. This allows us to offer a
potential start date only 8 weeks from date of contract sign off.
Kings would supply a proposed implementation plan configured in conjunction with Nylex for
signoff prior to commencement. Kings would then get a written agreement from our suppliers to
ensure they met agreed commencement dates, with penalties imposed if they weren’t able to
do so.
Not only does this ensure a seamless transition of service, it is also proof of the high level of
access Nylex staff would have to Kings senior management moving forward. Having access to
people so senior in the business provides a level of comfort that major decisions can be made
quickly.

2. Flexibility
Kings believes that the proposed fleet will offer Nylex greater flexibility than they currently
experience. Firstly, the fleet would be standardised, ensuring all vehicles can perform all work
required. All vehicles would have gates, which will allow for them to be used at other Nylex
sites during quiet periods. This ensures vehicles are utilised at all times regardless of seasonal
changes to volume. Employing a standardised fleet also ensures that each and every vehicle
can be used in this manner, rather than being limited to a specific few.
Kings propose training drivers who are currently part of Kings ad hoc fleet as backup drivers.
This ensures there is a pool of drivers who can be used to back up company drivers when on
leave (sick, annual etc). Such flexibility helps ensure all vehicles are on the road delivering
tanks on all available days of delivery.
The flexibility of Kings also allows us to provide multiple roll out options. The ability to
implement all new vehicles in one hit, or in a staged roll out, are both options we can offer.
All trailers will be equipped with hydraulic lifting units (‘air flippers’), improving unloading
flexibilities. These are not features on the current fleet and as such would provide immediate
efficiencies.
Kings will pay drivers over time (but client charge will remain the same) if they work more than
8 hours in a day. This allows for the flexibility of extra loads per vehicle each day. The fact that
drivers are currently paid on salary means they go home as early as possible.
In addition, Kings is willing to put a cap on the hours for all company owned fleet. Drivers would
not be allowed to perform more than 55 hours work in a week (average 11 hours per day)
without the express permission of Nylex Water.
Reporting
Detailed KPI reports would form an essential part of Kings’ approach to managing the fleet.
Kings would look to work in conjunction with Nylex to create KPIs that highlight areas of
improvement so that efficiencies can be found. Some proposed KPIs are:

3. Unload Time per Tank Size
The knowledge of how long it takes a driver to unload a particular tank size could help highlight
drivers who require further training. For example, if one driver is shown to be taking an average
of 30 mins to unload 30,000 litre tanks, and most other drivers average 20 mins, then the driver
taking 30 mins may require further training. This could help lead to quicker delivery times.
Load Time per Vehicle
Monitoring how long it takes vehicles to get loaded each morning could potentially draw
attention to patterns of some drivers taking longer than others to depart. Specific drivers could
then be observed to see if any changes could be made to lessen the time it takes for them to
leave Nylex Water Solution dispatch.
Total Time per Vehicle
Simple KPIs such as the average working hours per vehicle can point out drivers who are
consistently on the road longer than the rest of the fleet. Whilst this may often be as a result of
longer runs, it can also point out drivers who are generally slower than everyone else. We can
then work on finding out why a specific driver is slower than the rest, and take steps to improve
this.
Image
We understand that drivers and vehicles would be representing both our businesses. Sparkling
new vehicles branded in Nylex Water Solutions livery, being driven by clean cut, polite,
customer focused drivers wearing high visibility branded uniforms will ensure that the image
and reputation of Nylex and Kings not only remains intact, but is continuously improved.
Brand new vehicles branded in Nylex Water Solutions livery carrying brand new tanks will
certainly catch the eye of motorists and pedestrians out on the road. An improved fleet image is
fantastic advertising, and amounts to what is essentially free publicity. As previously stated, all
drivers will be also be required to wear dual branded high visibility uniforms.
Whilst the physical presentation of drivers and vehicles is important, the positive interaction
between drivers and customers is essential. Customer service training will be provided to all
drivers. Role playing will be incorporated, and will cover areas such as initial meeting, dispute
resolution and POD signing. A code of conduct will be developed with Nylex which drivers will
be expected to agree to and sign off on.

4. Management
Kings would be responsible for managing the entire process from start to finish. From
implementation, through to ongoing fleet, driver and contract management.
Implementation
Kings have put together an experienced management team who would be responsible for
managing the entire implementation process. Headed by the Major Account Manager (Luke
Sadler), the implementation team will also include:
Nick Smith – Victorian General Manager
Pat De Fillipis – Group Finance Manager
Cabel Ham – National Business Development Manager
Rob Della – Victorian Operations Manager
Gabe Williams – Contract Personnel Manager
The Major Account Manager would remain a single point of contact to ensure streamlined
communication, however the experience of this team of senior management will be utilised to
it’s full to ensure a smooth and seamless transition of service.
Responsibilities of the above during the implementation period will include:
• Contract Set up
• Vehicle purchase
• Driver Recruitment
o Interview incumbent drivers and present Kings offer
o Utilise database of previous applicants, advertise externally
• Driver Training
o On site traffic flow management
o Equipment
o Loading/Unloading procedures
o Delivery Requirements (PODs, etc)
o OH&S
o IT – Web Track, Net Track, Pro Track
• Documented Procedure Manuals

5. o Written induction, implementation, and customer service procedures
developed in conjunction with Nylex
o Manuals distributed to all drivers and staff involved with the contract
Ongoing Account Management
Kings would provide the following:
Account Manager
The Major Account Manager is responsible for driving the entire task from implementation
through to ongoing management moving forward. The Major Account Manager would initiate
regular review meetings (fortnightly, monthly, quarterly) to discuss KPIs such as those outlined
above, and to deliver measurable results.
Regular analysis of KPIs by the Major Account Manager will assist in the ultimate goal – cost
savings. Efficiencies found will be passed on so that the cost of delivering tanks is reduced by
as much as possible. What is the incentive for Kings to make this happen? A long and mutually
benefiting business relationship. As our current relationship attests, we are not interested in
one contract term. We would like many extensions. The only way we can achieve this is by
continuous improvement, which in turn leads to continued efficiencies, which in turn leads to
continued savings to Nylex, which hopefully leads to continued contract extensions!
Contract Supervisor
Kings will provide a full time, on site contract supervisor who’s sole responsibility would be to
Nylex Water Solutions. The contract supervisor is a day to day operational contact, the
utilisation of which ensures streamlined communication.
The contract supervisor will assist in the collation of data to be used in KPI reports, and will
collate such reports within a timeframe specified by Nylex Water and Kings for submission.
Being involved from the beginning of the implementation period ensures the contract supervisor
is completely up to speed with all aspects of the contract. Ongoing management of the drivers
forms a large part of the contract supervisor’s responsibilities, along with:
• Load management
• Returned or damaged freight
• Invoice Audits

6. • Technology Utilisation
• PODs
• Vehicle and Uniform audits
• Counselling, Discipline, Warning, Re-training, Re-deployment, Dismissal, etc
Driver Trainer
A lead driver will be trained up in all areas and given the responsibility of inducting and training
all new drivers. The ‘driver trainer’ will assist the contract supervisor in getting new drivers up to
speed with all requirements, systems, processes and procedures associated with the task.
Whilst implementation may require this lead driver to spend extra time on site initially, this will
be very much a part time role moving forward. The responsibilities of the driver trainer in
addition to induction and training will be:
• Spot checks on correct load retention procedures
• Spot checks on manual handling procedures
• Ensuring Kings and Nylex Water Solutions requirements are being followed as per
training
• Equipment spot checks
• Regular review meetings with onsite supervisor reporting on driver performance on the
above, driver feedback etc
All of the above responsibilities will be predominantly looked after by the Contract Supervisor
after the implementation stage is complete, however the driver trainer provides a secondary
supervisory role so there is not any relaxing of the procedures all drivers will be trained in.
Should you require any additional information, or have any queries regarding this submission,
please do not hesitate to contact me at your earliest convenience.
Yours sincerely,
Luke Sadler
Major Accounts Manager