IGA suppliers Metcash officially opened its new $300 million distribution centre (DC) in Truganina this month.
Metcash said the 115,000 square metre facility provides the independent retail network with a wider range of products for customers across both its food and liquor pillars.
“The mega DC is the largest single-level DC in Australia, equivalent in size to approximately six MCGs or 12 soccer fields,” Metcash said a media release announcing the opening.
“It will service over 4000 independent stores, premises, and wholesale customers in Victoria and will stock products from over 1900 suppliers.”
The DC is also on track to achieve a 5 Star Green Star Rating and incorporates best-in-class safety and sustainability design features, including a 2.7-megawatt solar system with 4780 solar panels.
Metcash partnered with Dematic and TMX Transform to install in the DC the latest Goods to Person automation technology, and a Layer Picker to be installed early next year. Approximately 23,000 pallets of inventory will be processed at the site each week.
The new DC replaces Metcash’s previous facility at Laverton, Victoria.
“We are extremely pleased to see this major infrastructure investment delivered for our independent retailers and Victorian shoppers,” said Metcash Group CEO Doug Jones.
“This world-class facility will further enhance the networks’ differentiated offer and relevance for Victorians, while also providing significant benefit for local suppliers.”
The DC opening comes in the same month Metcash is scheduled to appear before the Supermarkets Inquiry by the Australian Competition and Consumer Commission (ACCC).
Treasurer Jim Chalmers directed the ACCC to investigate the competitiveness of retail prices and allegations of price gouging in the supermarket sector, in the first inquiry of its kind since 2008.
Metcash said the independent grocers it supplied occupied an important competitive position in the market.
“In addition to providing a pricing constraint to the large dominant vertically integrated retailers, they provide real differences in product offerings and opportunities for local suppliers,” Metcash submitted to the inquiry in April.
The commission is also considering the role of Metcash as a major supplier to independent supermarkets and whether this could limit price competition as many had no cost-effective alternative supplier.
The ACCC’s final report is due in February.
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