Why the EMEA Defence Sector Is Paying Attention to Toll’s Allied Logistics Model

As experts in core supply chain services such as warehousing and distribution, Toll’s coverage and scale ensure operational readiness whilst driving efficiencies in cost, resources, and time. 

Following its expansion of Theatre Supply Chain capabilities across allied defence markets in Asia and the USA, Toll Government & Defence is establishing a dedicated presence in Europe, the Middle East and Africa (EMEA). 

We spoke with Simon Wheelton, Senior Vice President EMEA, Toll Government & Defence, about the rationale behind the EMEA expansion, how Toll’s allied defence experience translates to the UK market, and where future growth is likely to come from.

About 18 months ago, Toll Government & Defence undertook a detailed analysis of overseas markets as part of a broader global expansion. The objective was to identify customer bases that aligned closely with our existing defence capabilities. 

The UK emerged as a clear priority. There were several major defence tenders approaching that closely mirrored the capability requirements we already support for the Australian Defence Force (ADF) and the Singapore Armed Forces (SAF). We mapped those requirements against Toll G&D’s capabilities and concluded that we had a genuinely relevant service offering for the UK defence market. 

From there, the view widened. While the UK is the initial focus, we also identified longer-term growth opportunities across Europe, the Middle East and Africa where those same capabilities are applicable. The strategy is to establish a strong foundation in the UK defence and wider government sector, then expand into other EMEA markets where the opportunity and fit are right. 

I think, first and foremost, the fact that Toll has won and retained contracts with two defence forces with some similar capabilities, similar mindsets – particularly with the ADF being part of Five Eyes and AUKUS – means there is immediate commonality and attraction for the UK defence sector. Not only has Toll won and retained these contracts, but it’s always been underpinned by technology, by innovation, by digital architecture. The UK defence sector wants not only industry-leading capability, but the proven experience, continuous improvement, and mindset of always looking for ways to do things better that Toll has. 

Given our current footprint in the UK, a core focus is operating as a Fourth Party Logistics or Fifth Party Logistics provider, where we are using data, analytics, and system integration to understand and manage logistics end to end. 

Toll can plan and deliver services directly, but we can also integrate third-party providers where that makes sense, which allows us to act as an agnostic delivery partner. We work with defence or government customers to understand the problem, design the solution, and then serve as a single point of accountability for delivery.

That can include taking over an existing logistics operation or establishing an entirely new one. Our services span sourcing and procurement, warehousing and inventory optimisation, national and international distribution, reverse logistics, and support to maintenance, repair and overhaul activities. We provide these services not only to defence departments, but also to the OEMs that support them.

If you look at defence spending trajectories across the UK and Europe over the next five years, OEMs are facing sustained growth in production. At the same time, there is a strong policy focus on resilience, including onshoring and nearshoring, to reduce reliance on fragile global supply chains. 

Many OEMs are experts in their products rather than in logistics, so as supply chains expand and become more complex, there is a clear incentive to outsource logistics to specialists who can provide assured service, which helps them manage cost and risk. That allows OEMs to focus on their core activity. 

As we saw at DSEI last year, the defence sector has a strong appetite for growth. But, simplifying the supply chains to feed that is absolutely critical, and that’s where our digital backbone helps to truly understand what's going on. Part of what we do is produce the commonly recognised logistics picture to identify where there’s fragilities or troubles, then provide options to the customer. The last decade has shown that there will be interruptions to the supply chain, whether that's something like Covid, international aggression, or a tanker blocking the Suez Canal. There's always going to be interruptions to the supply chain, so having global visibility and an end-to-end partner such as Toll is critical. 

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There are clear opportunities in supporting NATO-aligned operations, where interoperability across different national systems, business rules and cultures remains a challenge. There is strong awareness within NATO of the need to simplify logistics and operate more collaboratively. 

There are also opportunities across non-defence areas of the UK government. Regionally, the Middle East and Africa present further growth potential. We also see opportunities to apply capabilities such as maritime and ship husbandry services, similar to those we already provide to the ADF, New Zealand Defence Force and the United States Navy. There is no shortage of opportunity.