Munro Footwear Group Invests In $ 50 Million From DC
Munro Footwear Group has committed to a new $ 50 million distribution center in the $ 600 million MidWest logistics center in Truganina, Victoria.
The site is owned by Charter Hall’s flagship $ 8.3 billion Charter Hall Prime Industrial Fund (CPIF) and is located at Founders Place in western Melbourne.
The move comes after Munro and supply chain and real estate consulting TMX undertook a comprehensive review of its warehouse and distribution functions.
The move to the Truganina site from its current space in Thornbury will allow Munro to optimize, integrate and consolidate its national supply chain in a new 26,354m² national distribution center specially designed for its in-store operations and online, for a total area of 49,815 m².
“We are on a high growth trajectory and have made a major investment in optimizing our supply chain operations to support the increase in our in-store and online sales,” said Marcus Bartlett, director of the operation of Munro Footwear Group (MFG).
“This new facility is a key initiative in our multi-year growth plan to develop our business, optimize our customer experience and strengthen our distribution capacity, in particular to support online sales,” he said.
The new site will offer autonomous mobile robot (AMR) solutions with a storage capacity of over 1.2 million units.
The AMRs will allow MFG to absorb the volumes currently handled by external third-party logistics providers.
AMRs will also increase the speed and accuracy of picking, streamlining the productivity and efficiency of operations, while reducing delivery times to customers.
The new facility will help optimize inventory levels, integrate with carriers and improve the customer experience across the group’s 260 stores and 11 e-commerce sites, which MFG says are growing by 25 % per year.
The site was also designed to achieve a minimum of five Green Star stars.
Charter Hall’s Head of Development, Industry and Logistics Andrew Simons has welcomed MFG to the portfolio.
“We are delighted to welcome the Munro Footwear team to our growing portfolio, guaranteeing them an exceptional new facility that provides privileged access to distribution channels, including the Port of Melbourne.
“The integration of leading-edge technology and AMR solutions will ensure that the facility delivers exceptional supply chain efficiency and productivity to Munro’s customers,” he said.
MFG will join existing tenant customers including Coles, Uniqlo, Toll, Ingham’s, Encore Tissue and Bridgestone at the MidWest Logistics Hub.
TMX Director Sam Dellios added that MFG’s new site will greatly benefit the company’s retail and e-commerce operations.
“This new facility will have one of the largest AMR person-to-person deployments in Australia and is an exciting milestone for Munro.
“Munro has seen a strong increase in sales thanks to the recent retail explosion, so our team has designed this new facility to flexibly support Munro’s dynamic growth, both in-store and online,” said he declared.
The site should be operational in the second half of 2022.