eStore Logistics, said to be Australia’s largest e-commerce distribution company, has made a significant move to boost its services to retailers by committing to a 12,515m2 warehouse at Marsden Park, NSW with LOGOS Property.
This new facility will complement its current Australian footprint, which is in excess of 50,000m2, and significantly increase eStore Logistics’ order servicing capabilities to serve more clients. Its current clients include Kogan.com, Temple and Webster, Hairhouse Warehouse, Patagonia, Dick Smith and Essendon Football Club.
“This expansion highlights our rapid growth, driven by our proprietary IT and omni-channel fulfilment service and solutions,” said managing director of eStore Logistics Leigh Williams.
“Our new facility in Marsden Park will feature world-leading logistics systems that support robust e-commerce fulfilment processes. We have complex algorithms that minimise manual handling and human decision making while maximising accuracy. We’re excited to be expanding our business and making our services available to more online retailers and enabling them to get orders to their customers super-fast at low cost”, added Mr Williams.
Extensive time was spent in the design phase to optimise the operational layout.
“We worked with eStore Logistics to design a facility that maximised storage density, but also allowed for approximately 30 per cent of the warehouse footprint to be allocated for product staging and returns. It is pivotal that sufficient footprint is designated to product staging and returns, as it is an inherent challenge in the e-commerce landscape,” said director of TM Insight Travis Erridge.
“Despite the allowance for a significant percentage of floor area being allocated to product staging and returns, the design enabled eStore Logistics to achieve 1.5 pallets per 1 m2 of floor area, well above the ratio that most 3PL adopt in their operations,” he added.
With local online retail sales accounting for 7.5% of total retail spending, there is still enormous upside yet to come from the e-commerce sector in Australia. When compared to China (21%) and the UK (19%), most experts are expecting the local e-commerce sector to more than double in the next few years, creating a huge opportunity for businesses like eStore Logistics to further leverage their platform.
The facility will be operational in November 2018 and will have an end value of approximately $25 million.
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