News

MCG sized fulfillment centre for Melbourne’s West

Australia’s largest ecommerce-focused fulfillment provider is investing over $40m into two AI-enabled fulfillment centres which will allow eStore Logistics to handle 95,000 orders each day for major leading brands.

eStore Logistics is investing AUD$40 million over several years into two new fulfillment centres which will feature over 200 autonomous robots.

The first, a 8,383 sqm facility, is already operational and the second, a 26,600 sqm warehouse that is larger than the Melbourne Cricket Ground, will open in August.

Both are located in Melbourne’s western suburbs and will handle up to 95,000 orders each day for brands including Kogan.com, Temple & Webster, Patagonia and MTB Direct.

Two new facilities will be equipped with over 200 Autonomous Mobile Robots (AMRs) that will transform ecommerce in Australia by fulfilling orders fast enough for retailers to offer affordable same day delivery services to customers.

 

The rollout comes at a critical phase for Australian ecommerce, which has been growing 20 percent  year-on-year, but accelerated rapidly under the coronavirus lockdown.

In April, online retail accounted for more than one in every five dollars spent on non-food goods.

With online retail sales projected to reach $33.bn by 2030, eStore Logistics is also securing additional sites to form a network of robotics-enabled warehouses across Australia.

Leigh Williams, Managing Director at eStore Logistics, said Australian ecommerce is enjoying a phenomenal growth-spurt right now.

“In just a few months it’s gained ground that would otherwise have taken years,” he said.

“Consumers are demanding faster delivery today than they were three to four years ago, and our robotics warehouse systems mean online retailers can give their customers the best service possible, including same day delivery, in the most cost-effective way possible.”

Leigh said ecommerce penetration in Australia playing catch-up on other more developed markets such as the US and UK, and ecommerce still has enormous room for growth.

Whilst priority delivery options are already available from some Australian online retailers, AMRs make it cost-effective for retailers of all sizes to offer the service. Inside each warehouse, autonomous robots and expertly trained staff work in tandem to make the stock picking process up to four times faster than a traditional fulfilment centre.

This enables far later cut-off times for same-day delivery, meaning that even online orders placed at 4pm can be successfully delivered within three hours.

eStore’s robot-equipped warehouses will ensure retailers can easily manage sales spikes during peak periods, such as Black Friday, EOFY and Christmas.

eStore Logistics’ AMRs use proprietary algorithms based on historical matching data to calculate the most efficient picking paths and order groupings for goods, and sales orders are shipped the same day from the most optimal warehouse and with the most suitable lowest cost freight carrier.

Communicating with one another, the AMRs also optimise operations by automatically adjusting the storage locations of shelves or pallets within warehouses based on incoming orders and future demand, learning as they go.

The robots retrieve and store inventory automatically, removing the need for staff to walk the warehouse floor or operate traditional material handling equipment to ship an order.

Jen Geale, Co-founder and General Manager at MTB Direct, said working with eStore Logistics allows the company to focus on what they’re good at, while leaving the operations to the experts.

“We get access to the type of world-class warehousing and fulfillment that would be out-of-reach for a business like ours otherwise. We can scale up and down as needed, while also meeting customer demand for super fast delivery,” she said.

eStore expects to create more than 100 new jobs over the next two years as it continues to expand its warehouse network and service new clients.

The company has four sites across Australia and each year fulfills over 20 million orders for Australia’s top ecommerce and omnichannel retailers, including Kogan.com, Temple & Webster, Patagonia and Hairhouse.

©2019 All Rights Reserved. MHD Magazine is a registered trademark of Prime Creative Media.