On July 9 Volvo Group Australia officially opened its new Sydney Parts Distribution Centre located in Minto in Sydney’s south-west.
The new centre replaces the previous one Volvo built in Minto, which has supported national operations since 1975, and embodies the many technological advances in logistics of the past five decades.
At 21,000 square metres, the new facility is twice the size of the previous facility and has capacity to hold 72,000 distinct stock keeping units (SKUs), including traction batteries and battery electric vehicle (BEV) specific components to support evolving fleet needs.
Managing the scale and complexity of this many parts is Volvo Group Australia’s new Automated Storage and Retrieval System (ASRS).
Above (L-R): Christopher Murphy, Head of VGA’s Sydney DC, and Martin Merrick, President Volvo Group Australia
A first for Volvo Group globally, this computer-controlled technology uses ultra-high density storage techniques to maximise the use of space, automatically retrieve the parts and deliver them directly to the operator at their console.
The days of walking long distances and climbing shelves are over, as the centre includes purpose-built cranes that sit within the racking and remove the need for manual handling. These support the lift and extend into the aisle to place parts on a pallet.
Volvo Group Australia President and CEO Martin Merrick says “this technology alone provides greater parts availability, reduced lead times and improved first-time fill rates”.
Importantly, the system significantly reduces movement, bending and manual lifting. Combined with other ergonomic features such as height-adjustable workbenches, anti-fatigue matting and a comprehensive fleet of material handling equipment, the centre makes operator safety and comfort a focus.
Above: At 21,000 square metres, the new facility is twice the size of the previous facility and has capacity to hold 72,000 distinct stock keeping units
“Improving our teams’ work environment has been a key driver of this project,” Merrick says. “We’ve made improving ergonomics a high priority, and equipment of this level of sophistication makes a massive difference to the working conditions of our people.”
In keeping with Volvo’s focus on sustainability, the centre has been built from the ground up as a five-star Green Star facility.
“The centre has been designed as a five-star Green Star facility, supporting Volvo Group’s sustainability ambitions and high standards for energy efficiency and indoor environment quality,” he says.
The new Sydney Distribution Centre forms part of Volvo Group’s broader investment of close to $400 million in Australia over the past 18 months, including strategic investments in distribution, retail and capability.
Above (L-R): Sandra Finér, Head of Service Operations & Technology; Roger Alm, Executive Vice President of Volvo Group; and Martin Merrick
“This centre will strengthen support for customers in freight, public transport, marine and industrial segments, helping improve parts availability and customer uptime across Australia and New Zealand,” Merrick adds.
Roger Alm, President of Volvo Trucks, cut the ribbon at the opening. “The Sydney Distribution Centre is the first of its kind anywhere in Volvo Group’s global operations and it is an important step in strengthening our support for customers in Australia,” he says.
“It brings together safety, quality and efficiency to improve parts availability, enable faster service and enhance uptime – keeping trucks on the road where they belong.
“With the new centre, we are creating a stronger logistics network, ready to support both today’s vehicles and the next generation of transport solutions. I am very pleased to see this investment come to life, and I want to thank the Australian team for making it happen.”