Myer is in the process of fitting out its new national distribution centre in Ravenhall, Victoria, which is expected to be fully operational by March 2023.

The new build, located at Dexus’ ‘Horizon 3023’ industrial estate, will hold over 100,000 SKUs to consolidate both in-store and e-commerce fulfilment into one national distribution centre.

The 40,000 square metre facility will enable improved inventory management, reduced markdowns and maximised sell-through, while producing significant efficiencies in online fulfilment operations.

The NDC will feature more than 200 Autonomous Mobile Robots (AMRs) that will ensure faster order processing and delivery timeframes. It will also be the largest implementation of Geek+ RS8 Shuttle System in the Southern Hemisphere to date.

Other technology includes pedestal sorters to sort product by store and/or carrier for cross dock, store replenishment and online orders, and eight metre high AMRs with the capability of put away and retrieval of boxed products.

The design is 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.

Myer CEO, John King said, “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. This is an important deliverable of our Customer First Plan and importantly, will deliver a better outcome for both our customers and shareholders.”

Myer executive general manager of supply chain, Tony Carr added: “The team are excited to get the keys to the facility. 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.

“There are widespread customer benefits and efficiencies anticipated for both the stores and online businesses. 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, ensuring we continue to fulfil the stores more efficiently. This will ensure, through automation, that online purchases are serviced in an even faster and streamlined way.”