MHD INDUSTRIAL PROPERTY
BOOSTING PRODUCTIVITY WITH OPERATIONS UNDER ONE ROOF Munro Footwear Group has committed to a new $50 million distribution centre in Melbourne’s west on the back of online growth. The footwear wholesaler and retailer – together with supply chain consultancy TMX – talk about the efficiencies to be gained from consolidating all operations under one roof.
M
arcus Bartlett, Chief Operating Officer at Munro Footwear Group (MFG) says the company’s major investment in supply chain operations supports its multi-year growth plan to expand the business. Critically, moving two separate operations to one distribution centre helps iron out existing inefficiencies, for example working with two warehouse management systems. MFG will consolidate its currently separate operations – a self-run facility in Thornbury and a third-party-run operation in Truganina – in a new $50 million facility strategically located as part of the $600 million MidWest Logistics Hub in Truganina. “Having all of the inventory accessed from one location will be critical,” Marcus says. “Internally transferring products between buildings is inefficient – and having two differently-run facilities adds further operational complexities. This move will help increase productivity and efficiency, with our customers directly benefiting from reduced lead times and improved service.” MFG has a long history in the bricks and mortar retail and wholesale world, so the new distribution centre will cater to all aspects of the business. “We are experiencing increased online growth – which is a significant factor to be sure,” he says. “But before embarking on this investment we had to be certain the size and operating 34 | MHD DECEMBER 2021
MFG’s new facility will host one of the largest AMR deployments in the country.
model was going to be fit for purpose for the long-term across all different parts of our business.”
WORKING WITH TMX TO BUILD THE RIGHT FIT MFG partnered with supply chain and property consultancy TMX to review its supply chain network, design new operations with an automated solution, and run the property procurement process. TMX secured a 10-year lease for MFG with Charter Hall – and will now project-manage the development of the new facility. As is customary for the property and supply chain consultancy, the full gamut of solutions and experience was brought to bear by TMX’s team in its objective of establishing the Truganina facility as a vehicle to support MFG’s accelerated growth. “Having the subject matter experts
on our side along the journey gave us full confidence in the exciting opportunity,” Marcus says. “Having the right information – receiving the support to decide on the technology, the developer, the location – will allow us to transition from a primarily manual operation to using more future-proof solutions.”
AMRs LEADING TO HIGHER THROUGHPUT Sam Dellios, Director at TMX, says the Truganina facility will have one of the largest AMR goods-to-person deployments in Australia, capitalising on MFG’s recent growth from online and in-store sales. “One of the biggest benefits of AMRs is the flexibility they provide,” Sam says. “Historically, goods-to-person and automated picking systems have been largely fixed units that effectively form
