Dematic Delivers Future-Ready Automation Solution for New Metcash Distribution Centre

Dematic Metcash

SYDNEY, AUSTRALIA – 8 July 2025 Dematic has partnered with one of Australia’s leading wholesale distributors, Metcash, to deliver a state-of-the-art goods-to-person (GTP) automation solution at its new distribution centre in Truganina. Powered by Dematic Multishuttle technology, the system is designed to increase efficiency, reduce operational costs and support scalable growth as Metcash modernises its Victorian supply chain.

Previously, Metcash’s Victorian operations were spread across a multi-shed site in Laverton, which supported its grocery, liquor, perishable and convenience businesses. The ageing mini-load system, installed nearly two decades ago, became increasingly difficult to maintain, and the fragmented layout limited efficiency and flexibility.

To future-proof its operations, Metcash consolidated its infrastructure into a single 115,000 square metre distribution centre. Dematic was selected to deliver a flexible, high-performance GTP solution tailored to the company’s growth plans and diverse retail network.

“The challenges of operating across multiple sites made it clear we needed a smarter, more integrated solution,” says Victor Cleves, Head of DC Automation and Design at Metcash. “Bringing everything under one roof was about creating a foundation that could support both current demands and future expansion.”

At the heart of the new system is a high-density Dematic Multishuttle with seven active pick stations and capacity to scale. Dematic’s patented Inter-Aisle Transfer (iAT) technology enables dynamic bin movement, allowing any SKU to be accessible from any station. Flex Shuttles in the sortation buffer help manage varying product sizes and fulfil diverse customer orders while supporting tight truck dispatch schedules.

The system also handles fragile items like wine bottles, a key requirement during tender. “Operator wellbeing was also a key focus for our business,” Cleves explains. “Dematic’s Gen3 pick stations, especially the adjustable platforms and powered lift-and-rotation tables, made a huge difference in ergonomics and safety. It’s been a real game changer for our team.”

A standout feature of the project was Dematic’s ability to integrate with two warehouse management systems – one for grocery and one for liquor. This ensured continuity while simplifying workflows.

The transition to Truganina was carried out in four stages, including a dedicated automation cutover. Laverton operations ceased on a Thursday, and by Monday, Truganina was live and fulfilling orders.

“This was a high-pressure transition that required careful planning, strong operational discipline, and a lot of support,” says Cleves. “Dematic delivered months of structured training and hands-on commissioning, gradually bringing our team into the process. By the time go-live came around, our operators had already been running parts of the system themselves, so they were confident and ready.”

Dematic’s strong local presence helped ensure a smooth rollout. With more than 345 service professionals across Australia and New Zealand, Metcash had access to on-the-ground expertise and spare parts when needed.

“Having a strong local service team was a huge advantage for us. It meant we had immediate access to the support we needed, whether it was for technical advice, parts, or on-site assistance."

Andrew North, Metcash Victorian State Logistics Manager

“Having a strong local service team was a huge advantage for us,” says Andrew North, Metcash Victorian State Logistics Manager. “It meant we had immediate access to the support we needed, whether it was for technical advice, parts, or on-site assistance. That level of responsiveness gave us real confidence during the transition and set us up for long-term success.”

Since go-live, higher pick rates have enabled Metcash to optimise its shift structure, improving resource utilisation and overall operational efficiency. The system’s built-in redundancy has also delivered more consistent and reliable inventory access compared to the previous mini-load setup.

“The new system has allowed us to significantly improve efficiency and better manage our labour requirements,” says North. “The visibility we now have around long-term maintenance and planning also means we can be more proactive with our servicing schedule and allows us to react quickly to retailer and market needs.”

Dematic also introduced a Lifecycle Cost Plan, providing forecasts for capital and maintenance spend across five, ten and fifteen years.

“We’ve worked hard to be the partner Metcash can depend on, from design through to daily support,” explains Terry Jamieson, Business Development Manager, Dematic. “We’ve built something together that’s not just functional, it’s future-proof,” he concludes.

Discover the future of smart logistics with Dematic at CeMAT Australia, 22–24 July 2025, at Stand A1, The Dome, Sydney Olympic Park.

About Dematic

Dematic designs, builds, and supports intelligent automated solutions empowering and sustaining the future of commerce for its customers in manufacturing, warehousing, and distribution. With research and development engineering centres, manufacturing facilities, and service centres located in more than 26 countries, the Dematic global network of over 10,000 employees has helped achieve successful customer installations for some of the world’s leading brands. Headquartered in Atlanta, Dematic is a member of KION Group, one of the world’s leading suppliers of industrial trucks and supply chain solutions.

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Disclaimer

This release and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy any securities in the United States or in any other jurisdiction. This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, for example, changes in business, economic, and competitive conditions, regulatory reforms, results of technical studies, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. We do not undertake any responsibility to update the forward-looking statements in this release.

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