New Metcash distribution centre delivers for wholesaler

Metcash’s relocation to a new $80m distribution centre in Gepps Cross has helped it navigate the challenges of Covid-19.

Metcash has navigated the logistical challenges thrown up by Covid-19, thanks in large part to its relocation to a new $80m state-of-the-art distribution centre last November.

The 68,000sq m facility in Gepps Cross was officially unveiled at an opening event on Monday, nine months after it started servicing independent grocers in South Australia and Northern Territory.

Metcash SA/NT general manager Matt Roberts described the investment as “transformational”, paving the way to a more efficient operation after more than 50 years at the company’s previous base in Kidman Park.

“That site had evolved over time and became a little bit of a rabbit warren in terms of its operations - the biggest benefit we’ve got now is an effective footprint, and that’s enabled us to become more efficient,” he said.

“Also during Covid we’ve been able to deal with the curve balls a lot better and the challenges. During that last lockdown we moved Christmas volumes in July without skipping a beat.

The Metcash distribution centre in Gepps Cross.

“We’ve got the ability now to hold more reserves, so we’ve increased our reserves of things like toiler paper, sanitiser, water - some of those key items that do pulse when there’s a lockdown.

“As a result of that we’re able to satisfy that increased demand without skipping a beat, and that increase in capacity and ability to respond to some of these challenges going forward is going to be a real advantage for us.”

Metcash committed to the new ‘best in class’ facility in 2018 after securing a 10-year supply agreement with Foodland store owners including the Romeo and Chapley families.

Developed by Charter Hall, the offices and warehouse support more than 300 Metcash staff.

Perishable products and dry grocery items are distributed to independent grocers including Foodland and IGA stores, while liquor is supplied to independent bottle shops including Cellarbrations, Thirsty Camel and Bottle-O as well as hundreds of hospitality venues.

Mr Roberts said enhanced environmental outcomes were also a key benefit of the move.

“It’s enabled us, from an environmental point of view, to upgrade a number of things like our wastewater management and our perishables site is powered by 2500 solar panels,” he said.

“We’ve now got, from a wellbeing and culture point of view, a central hub where the team can connect through a canteen, fitness centre, wellness room - from a culture point of view it’s created some benefits for us too.”

Mr Roberts said the company was working with Food SA on opportunities to further support local suppliers.

“We’re looking to partner with Food SA on how we bring suppliers that have an appetite for growth into our network,” he said.

“One of our big advantages is we’re Australia’s biggest wholesale distributors. So for a small South Australian supplier the opportunity to get a footprint into our network via Foodland or IGA stores locally, and then if the product does well launch into the rest of the country, is actually a real one.”