Australian retail giant Metcash has successfully integrated its fragmented operations into an efficient, intelligent distribution center by deploying Dematic"s automated storage and picking solutions, effectively supporting the continued growth of its diversified retail channels through the modernization of its logistics system.

  Metcash is a prominent Australian retail wholesaler and distributor, supplying independent retail brands such as IGA and Foodland. For years, Metcash"s operations in Victoria were dispersed across multiple traditional facilities in Laverton, providing warehousing and distribution support for its full range of products (including groceries, liquor, and fresh food) across diverse retail channels such as supermarkets and convenience stores. As the original systems aged, procurement of spare parts became increasingly difficult, and operational efficiency began to be impacted.

  Recognizing the limitations of its existing operating model, Metcash decided to consolidate all operations into a brand-new, modern distribution center to improve picking efficiency, streamline workflows, and support sustained growth across multiple retail channels.

  At this 115,000-square-meter distribution center, Dematic implemented a highly flexible and compact goods-to-person automation solution. The core of this solution is a multishuttle system equipped with seven goods-to-person intelligent picking stations, with an eighth expansion slot reserved to accommodate Metcash"s future business development.

  Dematic"s proprietary iAT (inter-aisle transfer) technology enables high-density storage, efficient retrieval, and flexible picking. During operation, totes can be dynamically rerouted, and all seven picking stations can access massive real-time information regarding goods and inventory within the racks. This operating model allows Metcash to remain agile even during periods of order volatility, ensuring on-time fulfillment.

  To handle Metcash"s diverse product storage and picking requirements, Dematic installed Flex shuttles in the buffering area. Their flexible arms adapt to various tote sizes and handle items gently, which not only satisfies multi-channel, diverse order requirements but also significantly increases storage density and throughput within limited warehouse space.

  Regarding Metcash"s fragile liquor order business, Dematic successfully conducted on-site testing with wine bottles, validating the system"s capability to manage fragile and diverse product ranges, while further strengthening the customer"s confidence in Dematic"s solutions. 

  The Dematic system integrates seamlessly with both the grocery and liquor Warehouse Management Systems (WMS), assisting Metcash in streamlining operational processes and laying a foundation for future business expansion. This serves as another key factor in the project"s success.

  The migration of Metcash to the new facility was divided into four phases, with the automated transition phase serving as the core milestone. Leveraging its extensive experience, Dematic completed the full-scale automation system transition in less than 72 hours following the suspension of plant operations on Thursday. The new distribution center commenced operations on Monday, receiving and fulfilling orders without any interruption.

  Since the system implementation, Metcash has seen significant improvements in warehouse logistics efficiency; The original multi-shift system has been consolidated into a single-shift operation, with notable gains in resource utilization and cost-efficiency. Furthermore, Dematic"s lifecycle cost plan provides forward-looking projections for Metcash"s anticipated capital expenditures and maintenance costs over the next five, ten, and fifteen years.