RESERVED FOR Rey writer only

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l infox is Lion’s in-house logistics provider,

servicing a large proportion of its transport

and operations needs, including ambient

and temperature-controlled warehousing on

the east coast of Australia and linehaul trans-

port nationally on all major legs. Lion last year

engaged Linfox to manage the majority of its

Australian distribution requirements.

Lion (formerly Lion Nathan National Foods)

is a leading beverage and food company with

a portfolio that includes many of Australia and

New Zealand’s favourite brands. The Dairy

& Drinks division (formerly National Foods)

produces household-name brands of milk and

dairy beverages, juice, dairy, cheese and soy

products. The Dairy & Drinks footprint includes

production facilities and sales offices in all

Australian states, as well as New Zealand,

Singapore, Malaysia and Indonesia.

New national distribution network In addition to consolidating linehaul and trans-

port operations for Lion, a key feature of the

massive 3PL contract was the establishment of

two new national distribution centres in Sydney

and Melbourne.

The Sydney NDC was up and running in

January 2009, with the new Melbourne NDC at

Laverton now fully operational as of June 2011.

With a storage capacity of more than 26,000

pallets, the new 28,600 m2, temperature-con-

trolled Laverton NDC is a high-velocity opera-

tion, distributing over 100,000 cases per day.

High velocity, short shelf-life SKu Linfox’s NDC operations manager Travis Small

said: “Many of the SKU (stock keeping units) we

distribute for Lion have a limited shelf life.

“Stock turns over very quickly. Storing and

distributing such SKU efficiently requires a

smart DC layout and storage systems.

“The use of drive-in or double deep storage

racks would have improved the site’s total

storage capacity. But, given the high turnover of

the products we are distributing, Linfox opted

for single deep selective racking to provide safer,

faster, unrestricted access to every product

line,” he said.

“It also gives us total storage flexibility, with

just about every product capable of being

slotted in every location.”

The warehouse fit-out was designed and

installed by Dematic.

“Dematic didn’t just meet our demanding

project deadlines, they exceeded expectations

at every phase of the project,” added Linfox’s

Travis Small.

“We basically took possession of a massive

empty shed in October 2010 and had to bring

the first phase of the NDC with over 20,000

pallet locations online before Christmas. Fitting

out a DC with over 20,000 pallet locations in

such a short timeframe is no small task, and

installation of the storage system was very much

on our critical path.

“Their ability to complete the installation of

more than 26,000 pallet storage locations ahead

of time across all four implementation phases

contributed greatly to our meeting critical project

delivery milestones.”

project management the key Dematic’s project engineer Joe Carmody said

implementing the short, two-month installation

schedule required all of the company’s extensive

project management experience.

“It was essential we had all of the storage

equipment in place prior to each phase going

live, which meant working around the clock,

seven days a week when necessary,” he said.

The installation of such a large storage system

in under two months was only made possible

through Dematic’s ISO9001 Certified Quality

System-accredited project management and

implementation methodology, said Mr Carmody.

Initiatives included:

• Setting up a steering committee comprising

senior Linfox and Dematic managers to facili-

tate open communications at a high level,

and ensure any non-project related matters

that may impact the project were assessed.

• Project planning and scheduling, including

a detailed program of works covering all

major implementation tasks from site estab-

lishment and installation to commissioning

and acceptance.

• Development and implementation of a struc-

tured risk management process.

• Regular site meetings, detailed weekly

progress and monthly reporting.

InTEgRATED suppLy chAIn ExpERTIsE wIns LIOn’s shARE fOR LInfOx

mHD SUPPLY CHAIN SOLUTIONS — SePTember / OCTOber 2011

S U p p ly c H a i n32

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Flexible Dc design and layout The Laverton NDC is currently configured with

two separate chambers – one providing storage

for over 21,000 pallets, and the other more

than 5,000.

Splitting the NDC into separate chambers

gives Linfox the flexibility to run different zones

at different temperatures, if required. The NDC

and storage system layout make it easy for

walls to be added to create further separate

chambers as required.

High volume order fulfilment About half of the NDC’s orders are despatched

as full pallets. Split-case orders are picked from

Colby Cartonflo carton live storage and packed

into shippers and palletised for local direct-to-

store delivery through Linfox’s route trade distri-

bution network.

All order picking is RF-directed, with both

Linfox and Lion running SAP IT.

Through its Vision Zero program, Linfox is totally

committed to ensuring occupational health and

safety (OH&S). To that end, the NDC’s storage

systems incorporate a number of safety initiatives,

including the ColbyRACK Protect-a-Rack.

Dematic designed the 26,000 pallet capacity

storage system to suit Lion’s requirements,

which includes not storing products on the

ground for hygiene reasons. A first storage

beam level 300 mm above ground keeps all

pallets clear of contamination or pests and

provides sufficient access for regular cleaning.

Pallets are typically stored six-high, with a top

beam level of around 8 metres.

Optimising storage system safety To help prevent rack damage during pallet

put-away and retrieval, the storage system incor-

porates modified Colby Protect-a-Racks to suit

the 300 mm high first beam level on all rack

uprights, together with end-of-aisle protection.

All aisle-facing uprights have also been fitted

with Colby Protect-a-Base. The new baseplate

protector is mounted to the base of front uprights,

providing protection at ground level against minor

collisions with forklifts and pallets. It features an

angled front face, which curves and wraps around

the whole upright to eliminate any catch points

when pallets are being placed or removed.

Colby Protect-a-Rack upright protectors

interlock with the Protect-a-Base, forming a

highly robust member. Protect-a-Rack upright

protectors not only deflect impacts away from

the upright, they also absorb them and transfer

inertia to the strongest part of the rack – the

bracing nodes. They also include a rear flange

protector to ensure the entire upright is shielded

from direct impact damage from the rear.

“Safety is obviously our number one concern.

Preventing storage systems from getting

damaged in the first place not only provides a

much safer workplace, it will also reduce operat-

ing costs over the life of the DC,” said Linfox

operations manager Travis Small.

For more information call (02) 9486 5555 or

visit www.dematic.com.au.

caption: Joe carmody and travis Small.

mHD SUPPLY CHAIN SOLUTIONS — SePTember / OCTOber 2011

S U p p ly c H a i n 33

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