Kings Transport proposes to take over Nylex's transport operations with a new fleet of vehicles and trained drivers. Key aspects of the proposal include: - Kings will assign an account manager and on-site supervisor to oversee the transition and ongoing management. - Drivers will be trained on safety, equipment operation, delivery procedures, and customer service. - Performance will be tracked using KPIs such as unload time, load time, total time per vehicle, daily/weekly load value. - Steve Moore of Nylex will oversee the fleet costs and activity reporting. Regular audits will ensure Kings meets its obligations.

1. Water outsource data.
Responsiveness
• Should this proposal go ahead Nylex will be Kings Transport largest account (currently second). This gives us substantial weight in the
company regarding access to access to decision makers & senior managers
• Account manager is based at Nylex on site & linked to Kings systems remotely – there is clear lines of communication to all Nylex sites
& past results clearly indicate excellent response times & early notification of issues. This would be a requirement at Kings HQ and
addition to the site would give us clear & unobscured access to this recourse.
• Potential start dates are driven by Nylex needs & can be clearly dictated. Kings are negotiating time based penalties to suppliers of
equipment to assure they meet commitment dates.
• IT solution – Kings IT routing & tracking solutions are among the best in the country – They have the ability to change destinations/
report/track & manage freight in real time.
Flexibility
• All trucks will be standardised with maintenance schedules that will not impact deliveries. Trucks will come with side gates This means
that NWS equipment can be used at other Nylex sites if activity drops – this will be written into the agreement.
• A pool of Kings employed drivers will be trained to cover staff who are sick & or on leave. This will alleviate trucks without drivers &
missed revenue. Penalties will be written into the agreement to ensure compliance.
• All equipment rucks & trailer will be fitted with hydraulic lifting equipment. Safety is a grave concern as current equipment is diverse &
requires driver’s skill to maintain goods are delivered in saleable condition.
• Our charges remain at the standard hourly rate regardless if the driver works into overtime. This will improve revenue base by ensuring
multiple loads per day in appropriate schedules.
• Driver hours are capped at 11 working hours per day. This will be managed & captured through KPI’s

2. Reporting
• Detailed KPI’s will be formulated to capture all aspects of delivery performance & cost.
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 driver’s 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 KPI’s 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.
Kings IT systems compliment the allocation of above data
Daily Load Value or DLV
There will be a minimum DLV for each load each day. The scheduling software can be modified to give load value updates and flag any
undervalue loads.
The schedulers will be instructed to ensure all loads are redesigned until maximum dollar value is reached.
Weekly Load Value or WLV
There will also be a WLV for each truck each week. The scheduling software is designed to load each truck a week at a time, therefore we can
also have a flag on minimum weekly values.

3. For example.
DLV = $8,000 = 9%
WLV = $40,000 = 9%
Load 1.
Monday: 3 x 9000ltr / 2 x 13,500ltr = $8,060.44
Tuesday: 2 x 13,500ltr / 2 x 18,000ltr = $8,319.04
Wednesday: 2 x 18,000ltr / 2 x 22,700ltr = $9,362.94
Thursday: 2 x 22,700ltr / 2 x 30,000ltr = $11,863.32
Friday: 3 x 9000ltr / 2 x 22,700ltr = 9,104.34
This load satisfies both criteria and exceeds the targeted weekly revenue by $6,710, showing a result of 7.7%.
Load 2.
Monday: 2 x 22,700ltr / 2 x 30,000ltr = $11,863.32
Tuesday: 2 day trip
Wednesday: 3 x 9000ltr / 2 x 13,500ltr = $8,060.44
Thursday: 2 x 18,000ltr / 2 x 22,700ltr = $9,362.94
Friday: 2 x 22,700ltr / 2 x 30,000ltr = $11,863.32
This load also satisfies both criteria and exceeds the targeted weekly revenue by $1,150, showing a result of 8.7%. This is despite the driver
completing a 2 day trip.
With these checks in place, it should be a simple process to ensure all vehicles are tracking to their desired targets.
Limiting Factors
1. We must have an order book that can support optimum load design.
2. We must have production supplying every tank the schedule demands. (If they don't make a tank for whatever reason, our calculations are
useless & would require part of the fleet to perform other duties)
3. Vehicle breakdowns (Limited impact given it will be a brand new fleet)
4. Vehicle accidents (Out of our control)
A key performance indicator (mentioned previously) will be 'distance travelled' vs. 'hours worked'.
Given that time will now become a variable cost to the business, it will be important to measure distance travelled against hours worked.

4. Historically, an average of fifty hours per week has produced an average of 2,200kms travelled. This would represent a factor of 44. If a driver
was doing fifty-five hours and travelling only 1700kms, this would result in a factor of 31 and require explanation.
Image (response from Kings Transport)
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.
Management
Kings response.
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.

5. 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 (POD’s, etc)
o OH&S
o IT – Web Track, Net Track, Pro Track
• Documented Procedure Manuals
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 KPI’s 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!

6. 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
• Technology Utilisation
• POD’s
• 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.

7. Nylex Management of fleet.
• Steve Moore will be the direct manager of the fleet & responsible for cost & activity relating to all aspect of distribution at NWS.
• Steve will be responsible for KPI’s that capture activity in real time – such as DLV & WLV these will be presented to senior
management & logistics on a weekly basis.
• The utilisation of resources will be visible in the KPI’s this will ensure site manager has the ability to commit Kings recourses to other
business unit within Nylex to negate unnecessary fixed cost exposure
• Steve will ensure all safety & monitoring systems are in place & documented to ensure chain of responsibility exposure is negated &
Kings Transport is adhering to its contractual obligations. This will reported to senior management & become part of the overall KPI’s.
• T Evans & David Gordon will complete full audit prior to Nylex commitment & manage entire process until maturity. Full process will
not be handed over to site manager unless Kings full contractual obligations are meet.