Myer has recently taken possession of its new National Distribution Centre (NDC) – a 40,000 square metre facility in Victoria.
The new warehouse, located in Ravenhall, Victoria, will hold over 100,000 SKUs, and will consolidate both instore and e-commerce fulfilment into one national distribution centre.
Myer is currently in the process of fitting out the facility and expects it to be fully operational by March 2023.
Myer executive GM of supply chain Tony Carr said the NDC will improve inventory management and delivery management for online orders, while maximising sell-through and reducing future markdowns.
“Having an NDC is incredibly important as it will ensure we can accommodate the growth in our online business, as well as providing the service levels our customers expect and deserve from Myer.
“It will allow us to be more data-led in stocking our stores – to allow stores to draw from the NDC as they meet demand (not the push model of old) ensuring we continue to fulfil the stores more efficiently to meet customer demand.
“It will ensure, through automation, that online purchases are serviced in an even faster and streamlined way.”
Technology at the site will include pedestal sorters to sort product by store and/or carrier for cross dock, store replenishment and online orders.
The NDC will also feature more than 200 Autonomous Mobile Robots (AMRs) and three different AMR technologies (Geek+ RS8 Shuttle, P800s, and Körber’s sortation solution).
The rollout will include the largest implementation to date of Geek+ RS8 Shuttle System in the Southern hemisphere.
The design of the NDC is to an uncertified 5 star Greenstar rating and includes water harvesting and recycling, LED lighting throughout the warehouse and offices, energy efficient fittings, water saving taps and fixtures in kitchen amenities and the use of sustainable materials where applicable.
Solar will power the NDC’s energy consumption by an estimated 20%, with any excess power returned to the grid.
“Our NDC will fundamentally change our supply chain operations – delivering a faster, more efficient and profitable way to meet the demands of our online business and ensure we maximise the inventory flow to our stores,” Myer CEO John King said.
“This is an important deliverable of our Customer First Plan and, importantly, will deliver a better outcome for both our customers and shareholders.”