TMX has secured a new 40,000 sqm National Distribution Centre (NDC) for national retail giant Myer.
The site is based in Ravenhall, Victoria, and will manage both store and online fulfilment. The Myer NDC will be a new build and located at Dexus’s ‘Horizon 3023’ industrial estate. It will be a state-of-the art facility holding over 100,000 SKU’s, with widespread customer benefits and efficiencies anticipated through the implementation of several automation solutions.
“Having a centralised fulfilment centre for stores replaces our historical push model, and will result in improved inventory management, reduced markdowns and maximised sell through whilst also producing significant efficiencies in our online fulfilment operations,” said John King, CEO of Myer.
It is anticipated that up to 70% of Myer’s online fulfilment will be performed by the NDC, ensuring improved levels of service for customers, operational efficiencies and reduced cost per order. The new NDC is also expected to provide centralised fulfilment for stores ensuring stock is prioritised for locations with the highest sell through, which is anticipated to maximise sales and reduce markdowns.
TMX supported Myer with its supply chain strategy including designing the operational and automated solution. The real estate solution was sourced by TMX on behalf of Myer on a 10-year lease term with Dexus. “Our supply chain strategy and warehouse design teams have developed a solution that will ensure Myer is well positioned to improve its ecommerce fulfillment function whilst still meeting the replenishment needs of it physical store network,” said Andrew Maher, Director at TMX.
“Omni-channel retail distribution is layered with complexities and increasingly requires automated solutions to deal with those complexities. TMX will support Myer with the implementation of the operating solution and will work alongside Dexus in the delivery of this facility.”
Construction of the new site is underway, and Myer is expected to begin using the NDC in a phased approach from August 2022.