Inside Logistics

Dematic outfits Toll Group DC

New Australian DC uses automated technology to handle 80,000 SKUs of fashion items


August 24, 2018
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Pictured from left: John Mullen, Chairman, Toll Group, The Hon. Melinda Pavey MP, Minister for Roads, Maritime and Freight, Alex Linton, General Manager Logistics, Speciality Fashion Group and Chris Pearce, President, Global Logistics.

GRAND RAPIDS, MICHIGAN – The Toll Group, a third-party logistics provider based in Australia has opened a new DC in western Sydney.

The A$160 million retail and eCommerce fulfillment centre is specially designed to support the growth of online shopping in Australia. Toll’s new centre:

• is set across 32,000 square metres
• incorporates 15,600 square metres of automation equipment
• is capable of picking, processing and packing 375,000 items per day
• shortens delivery times from days to hours.

The Toll Group needed a highly automated DC to meet increasing demands from its customers for e-commerce and omnichannel order fulfillment and looked to Dematic for a solution.

The DC features several Dematic solutions integrated with best-in-class technologies. Dematic Multishuttles store, buffer and sequence 80,000 SKUs. Workers pick orders at 24 ergonomic Dematic goods-to-person workstations.

Ten Dematic AGVs handle repetitive transportation tasks safely and automatically. In addition, the Toll Group worked closely with Dematic to define and implement support systems from other vendors to ensure complete integration.

Toll Global Logistics President, Chris Pearce said today’s market is placing aggressive demands on retailers to provide fast fulfillment and delivery, without increasing costs.

“Toll’s investment in the new facility is helping our customers adapt to the new retail environment. The facility is equipped with $50 million in advanced automation technology so retailers can deliver their eCommerce orders faster and in a much more economical way,” said Mr Pearce.

The facility will be one of the country’s most advanced eCommerce fulfilment centres, transforming the way retail orders are picked, processed, sorted and delivered to customers.

As a 3PL, the Toll Group had some stringent requirements for automation. Arthur Dardoumbas, general manager of development and solutions at the Toll Group explained. “We look at the occupation, health and safety requirements. We look at order accuracy to prevent returns coming back to the facility.”

Dardoumbas continued, “And we also look at the customer experience to make sure they get their product in an efficient manner. Because it’s all about the speed to market today.”