Brendon Furness, CEO of Auckland-based Cardinal Logistics, sat down with MHD to explain how finance partner, DLL, has supported its investment in complex automation-related projects.
The landscape of logistics is undergoing a rapid transformation, driven by advancements in automation and the need for more efficient supply chains.
Cardinal Logistics, a third-party logistics (3PL) provider specialising in fast-moving consumer goods (FMCG) has been working with its global financial solutions provider, DLL, as it implements automation solutions across its national network.
The partnership has not only accelerated the integration of advanced automation equipment but is also laying the foundation for a more sustainable and scalable business model.
Overview of Cardinal Logistics
Cardinal Logistics has established itself as a key player in New Zealand’s logistics market. Brendon Furness, CEO of the company, shares insights into its journey, noting that the company’s operations span freight-forwarder integration, container handling, warehousing, and national transportation across road, rail, and sea.
“We’re privately held and focused almost exclusively on the FMCG industry in New Zealand,” he says. “Automation will enable us to expand into other industries and regions”.
Cardinal manages a combination of its own nine warehousing sites as well as two third-party managed locations, delivering essential goods nationwide through the robust transport network.
The decision to invest in automation came from a clear strategic need to enhance operational efficiency and meet the high demands of FMCG.
“Our environment is fast-paced and continuous, and automation provides a circuit breaker that benefits both our customers and staff, particularly in terms of volume smoothing, workload balance, and health and safety,” adds Brendon.
Push for automation
Cardinal’s investment in automation was driven by the desire to keep pace with global trends and maintain strong relationships with multinational customers who already employ automation in their overseas operations.
Brendon notes that although Cardinal began its journey towards automation shortly before COVID-19, the pandemic highlighted the need for supply chain resilience. Since then, the company has focused on sourcing land, building infrastructure, and executing its automation fit-out. Cardinal’s first automated site went live earlier this year, with a larger phase two rollout scheduled to begin in February 2025.
The equipment chosen for this transformation includes an Automated Storage and Retrieval System – ASRS and goods-to-person carton buffering, which are key for optimising the handling of FMCG products.
“We’ll implement 120,000 pallets of ASRS racking in Auckland, but the real game-changer is the 62,000 carton goods-to-person buffering system,” says Brendon.
He adds that carton picking is a component of FMCG logistics in New Zealand due to the geographic diversity of retail distribution.
The adoption of automation enables Cardinal to streamline its operations and deliver products more efficiently.
“Our goal was to optimise the sustainable delivery of our customers’ products to retail shelves in the most cost-and-time-effective way possible,” explains Brendon.
“We also wanted to improve health and safety across all our sites, ensuring a sustainable service level.”
A strategic partnership with DLL
To support its long-term automation program, Cardinal sought a specialised finance partner capable of handling the complexities of automation assets.
“We needed a partner with both scale and international expertise in supply chain and automation,” says Brendon.
Cardinal’s choice to work with DLL was driven by the latter’s understanding of both automation technology and the Australasian market.
Steven Davey, DLL’s Intralogistics Lead for Australia and New Zealand, reflects on the importance of this relationship.
“We don’t see ourselves as just a finance partner – we’re a strategic partner embedded in Cardinal’s long-term goals,” he says. “Our role is to understand not just the assets but the strategy behind Cardinal’s vision for the future.”
This approach allowed DLL to offer financial solutions that aligned with Cardinal’s objectives, ensuring a sustainable path forward.
“Automation is incredibly complex, and we wanted a partner who could challenge our thinking, and share their expertise,” adds Brendon. “DLL’s global footprint and local relevance have been invaluable to us.”
Overcoming challenges and realising benefits
Like any transformation, the implementation of automation at Cardinal was not without its challenges.
“The real hurdle was change management,” says Brendon. “Shifting from a traditional logistics environment to one that’s heavily automated requires a new mindset. Suddenly, we have engineers and technicians on our payroll alongside our store workers and drivers – it’s a shift in how we operate and integrate.”
Steven adds that one of DLL’s key roles was providing expertise to help Cardinal navigate these challenges.
“While automation is exciting, it’s not without risk. We were able to guide Cardinal through the complexities and tap into the experience of our global asset management team to provide insight into the equipment throughout its expected lifespan,” he says.
In terms of tangible benefits, Brendon highlights several key performance indicators (KPIs) that have already improved due to automation.
“Order output has increased by up to 400 per cent, and we’ve seen much more resilience in managing volume spikes, which is always a challenge in logistics,” he says.
Automation has reduced the pressure on staff, eliminated the need for overtime during peak periods, and improved overall business efficiency.
“Sustainability is important in our development, with key initiatives like rooftop solar panels, battery storage, and recycled plastic pallets leading the way. We’re also exploring fully compostable stretch wrap and harnessing power regeneration in our ASRS cranes for greater efficiency. As our site ramps up, we’re excited to unlock the full potential of these innovations and share our journey towards a greener future.” Brendon says.
Harnessing Cardinal’s capabilities
Cardinal has ambitious plans for further enhancing its capabilities.
“We have future sites in mind, but beyond that, automation is going to help us integrate various supply chain partners more effectively,” says Brendon.
He believes there’s a global demand for more efficient supply chains, and Cardinal is committed to playing a role in optimising the food supply chain in New Zealand.
“We’ve been working with Cardinal for over two years, and this project showcases the strength of our value proposition,” adds Steven. “We’ve been able to leverage our global expertise and offer bespoke financial solutions tailored to Cardinal’s needs.”
A new era of automation
Cardinal’s journey into automation is a testament to the company’s commitment to innovation and efficiency.
The partnership with DLL has played a crucial role in ensuring that this journey is not only successful but sustainable in the long run.
“Automation is changing the identity of our business,” says Brendon. “This isn’t just about one warehouse – it’s about integrating automation into the fabric of Cardinal Logistics and setting us up for the future.”
As Cardinal continues to roll out automation across its network, the collaboration with DLL will remain central to its strategy.
Both Brendon and Steven are confident this partnership will serve as a model for others in the industry, showcasing what is possible when logistics companies and financial experts come together to drive innovation.
“We see this as a long-term partnership with Cardinal, one that will keep advancing as they embrace a future where automation plays a bigger role in their operations,” says Steven. “This is an incredibly exciting period for the industry, and we are inspired by the transformative impact that the right financial solution can have on our clients.”
Read more about DLL here
