Australian supermarket giant, Woolworths has announced its plans to develop a new multi-million dollar distribution centre in Melbourne’s west.
In a bid to increase the number of, and quality of products the company is able to deliver to its Victorian consumers, Woolworths has unveiled plans for its new DC in the western suburb of Trugania.
According to the supermarket chain, the new DC will help the company increase its share in the increasingly competitive fresh food arena, and will replace its existing operations in Mulgrave.
“The Melbourne Fresh Distribution Centre is designed to have state-of-the-art refrigeration to ensure the quality and freshness of our produce,” Paul Graham, Woolworths’ chief supply chain officer said.
“Co-location with the Woolworths MeatCo and proximity to produce markets will provide us with opportunities to improve how we deliver fresher, faster and more efficiently to our stores in Victoria. This helps us deliver on our fresh food commitment to our customers.”
Slated to open in 2020, the new centre will become Woolworths’ main operations hub, as the Mulgrave site is repurposed to support the new DC and the new automated distribution centre that’s on-schedule to open in Dandenong south late this year or in early 2019.
According to Woolworths, the fresh food market is a key growth vertical for the business, and working towards extending its presence in the category is a big priority for the business. In recent years, this focus has seen Woolworths obtain a majority share in the $40 billion Australian fresh food industry, alongside its main competitor, Coles.
New technology, revamps to its rewards system and improved delivery and in-store pickup processes are among the ways Woolworths is fighting for a larger share in the increasingly competitive fresh food industry. These efforts have become more important as Aldi continues to fast-track its market share against Australia’s two biggest players – Woolworths and Coles.
Woolworths has emphasised that all staff currently working out of the company’s DC in Mulgrave will be fully-informed of the move and any potential impact on their day-to-day work.
“Although the move is more than two years away, we understand this is a major change for our team members at Mulgrave and we are committed to supporting everyone through it,” Graham said.
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