Metcash boosts efficiency with new automated Truganina facility

Dematic has delivered an automated goods-to-person system at Metcash's new 115,000 square metre distribution centre located in Truganina, Victoria, replacing an older mini-load system previously used at Metcash's Laverton site.

Metcash, an Australian wholesale distributor with businesses spanning grocery, liquor, perishable and convenience products, had operated from a fragmented multi-shed layout in Laverton for nearly 20 years. The previous infrastructure, increasingly difficult to maintain, led the company to consolidate into a single larger site and pursue automation.

Operational challenges

Victor Cleves, Head of DC Automation and Design at Metcash, shared the rationale for consolidating the organisation's distribution operations and moving to automation technology. "The challenges of operating across multiple sites made it clear we needed a smarter, more integrated solution," he said. "Bringing everything under one roof was about creating a foundation that could support both current demands and future expansion."

The automation solution delivered by Dematic is powered by its Multishuttle technology. The system includes seven active pick stations and has provision to scale in line with future business requirements. Patented Inter-Aisle Transfer (iAT) technology underpins the system's flexibility, allowing dynamic movement of storage bins, so any product SKU can be accessed from any pick station. Flex Shuttles in the sortation buffer are used to manage varying product sizes and order profiles, which also supports meeting demanding truck dispatch schedules.

A key function of the solution is its capability for handling fragile items, notably wine bottles. The system is complemented by ergonomic design considerations for operator safety and wellbeing. Cleves noted, "Operator wellbeing was also a key focus for our business. Dematic's Gen3 pick stations, especially the adjustable platforms and powered lift-and-rotation tables, made a huge difference in ergonomics and safety. It's been a real game changer for our team."

Smooth transition

The switchover to the new Truganina distribution centre was coordinated in four stages. Operations at Laverton ended on a Thursday, with the Truganina facility operational and fulfilling orders by the following Monday. This included a dedicated automation cutover to minimise any service interruption.

"This was a high-pressure transition that required careful planning, strong operational discipline, and a lot of support," says Cleves. "Dematic delivered months of structured training and hands-on commissioning, gradually bringing our team into the process. By the time go-live came around, our operators had already been running parts of the system themselves, so they were confident and ready."

The implementation was also unique in its integration with two warehouse management systems, supporting both grocery and liquor operations, which was aimed at maintaining business continuity while simplifying internal workflows.

Local expertise

With a service base exceeding 345 professionals in Australia and New Zealand, Dematic was able to support Metcash on-site with technical and operational assistance throughout the rollout. Andrew North, Metcash Victorian State Logistics Manager, highlighted the importance of this support. "Having a strong local service team was a huge advantage for us. It meant we had immediate access to the support we needed, whether it was for technical advice, parts, or on-site assistance. That level of responsiveness gave us real confidence during the transition and set us up for long-term success."

Operational gains

Post-implementation, Metcash reports higher picking rates and improved shift optimisation. According to North, "The new system has allowed us to significantly improve efficiency and better manage our labour requirements. The visibility we now have around long-term maintenance and planning also means we can be more proactive with our servicing schedule and allows us to react quickly to retailer and market needs."

The solution's redundancy means inventory access remains reliable, which contrasts with previous limitations under the old mini-load system.

Cost forecasting and future proofing

Dematic has also provided Metcash with a Lifecycle Cost Plan projecting capital and maintenance expenditures across periods of five, ten, and fifteen years, supporting long-term planning and budgeting. Terry Jamieson, Business Development Manager at Dematic, commented, "We've worked hard to be the partner Metcash can depend on, from design through to daily support. We've built something together that's not just functional, it's future-proof."