Metcash, the supplier to IGA, has launched a state-of-the-art $300 million distribution centre (DC) in Truganina, setting a new benchmark for logistics in Australia.
This vast 115,000-square-metre facility is a game-changer for independent retailers, significantly expanding the range of food and liquor products available to customers. According to Metcash, the centre is the largest single-level distribution hub in the country, covering an area equivalent to six Melbourne Cricket Grounds or 12 football pitches.
Designed to support over 4,000 independent stores, businesses, and wholesale clients across Victoria, the centre will stock goods from more than 1,900 suppliers. Metcash is also aiming for a 5-Star Green Star Rating, reflecting its commitment to sustainability. Cutting-edge features include a 2.7-megawatt solar array made up of 4,780 panels, as well as advanced safety and eco-friendly design elements.
To maximise efficiency, Metcash collaborated with Dematic and TMX Transform to implement the latest Goods-to-Person automation technology within the facility. A sophisticated Layer Picker system will also be installed early next year. Each week, the centre will process approximately 23,000 pallets of inventory, ensuring a seamless supply chain for its customers.
The Truganina facility replaces the company’s previous distribution centre in Laverton, marking a significant investment in the future of independent retailing. Doug Jones, Metcash Group CEO, expressed his enthusiasm for the project, stating, “This landmark development underlines our commitment to supporting independent retailers and the communities they serve. It enhances our ability to deliver a unique and competitive offering for Victorians while creating new opportunities for local suppliers.”
The launch coincides with Metcash’s appearance at the Supermarkets Inquiry led by the Australian Competition and Consumer Commission (ACCC). This inquiry, initiated by Treasurer Jim Chalmers, is examining retail pricing practices and allegations of price gouging within the sector—the first investigation of its kind since 2008.
In its submission to the inquiry earlier this year, Metcash highlighted the critical role independent grocers play in fostering competition within the market. “Independent retailers provide an essential alternative to the dominant supermarket chains by offering competitive pricing, distinctive product ranges, and valuable opportunities for local suppliers,” the company noted.
However, the ACCC is also scrutinising Metcash’s position as a key supplier to these independent stores, raising questions about whether this reliance might limit price competition due to the lack of cost-effective alternatives.
The new Truganina DC is a bold step forward for Metcash, reinforcing its dedication to innovation, sustainability, and the success of Australia’s independent retailers.
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