Kmart Automates new Omni-channel Facility

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Vanderlande has been selected by Kmart to automate its new logistics facility at the Moorebank Intermodal Precinct in Sydney. To meet the complex needs and demands of one of Australia’s most iconic retail brands, the state-of-the-art warehouse will feature Vanderlande’s FASTPICK goods-to-person
order fulfilment system.

The Kmart Group serves millions of customers per week in over 450 Kmart and Target stores across Australia and New Zealand, as well as through its online platforms and mobile apps. Kmart’s long-term growth ambitions will focus on this omni-channel approach, and address the current challenges of labour availability, rising order volumes, and increasing customer expectations.

The partnership reflects Kmart’s commitment to enhancing operational efficiency and future-proofing its supply chain as it continues to expand across the region. The new 100,000m² omni-channel facility will be equipped with Vanderlande’s advanced FASTPICK solution, combining the intelligent ADAPTO automated storage and retrieval system (AS/RS) with ten ergonomic goods-to-person (GtP) workstations.

The system has been designed to maximise picking speed, flexibility and efficiency, so that the full complexity of both business-to-business (store deliveries) and business-toconsumer (online orders) operations can be seamlessly integrated within a single omnichannel fulfilment centre. For retail distribution, a high-speed crossbelt sorter will handle both cartons and polybags with a high level of precision.

In addition, the Moorebank site will deploy a large fleet of Toyota AGVs and VNA (very narrow aisle) trucks to support internal pallet transport and high-density storage. The entire operation will be controlled by Vanderlande’s VISION warehouse control system, ensuring the intelligent coordination and
management of all processes. Together, these integrated technologies will form a scalable, future-ready platform that is tailored to meet Kmart’s operational requirements.

“The investment in the new Moorebank omni-channel fulfilment centre will be an important part of our long-term strategy to modernise our supply chain and simplify store operations,” explains Phillip Irvine, Kmart’s General Manager – Next Generation Supply Chain. “Ultimately, this approach is about delivering even more value to our customers, which is central to who we are.”

“We are excited to join Kmart on this journey to optimise its supply chain and ensure that this is ready for the future,” says Jordan Thrupp, Vanderlande’s Managing Director Australia. “The strong partnership we’ve built with their team has been instrumental in delivering the best possible solution, and we remain committed to supporting Kmart’s ongoing success.”

Stephan Heessels, Vanderlande’s Executive Vice President for Warehouse Solutions adds: “This project reflects our dedication to delivering scalable systems with fast and efficient order fulfilment. FASTPICK is the optimal solution for leading retailers, such as Kmart, facing unpredictable long-term growth across their store and e-commerce operations.”

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