Kathmandu and technology company, Dematic, are developing a giant distribution centre (DC) in Truganina, Melbourne. The DC, an industry first in Australia, will enable the company to sort individual items at high volume, directly to store and online orders.

The 25,000 square metre DC will service Kathmandu’s network of 115 stores in Australia and its increasing domestic and international online business. The facility has been ‘specifically designed to support Kathmandu’s future growth plans.’

The system incorporates Dematic’s sortation and e-commerce technologies with orders fulfilled through ‘batch pick and sort’ technology, coordinated by Dematic’s iQ software.

“As a leading brand for the travel and adventure markets, Kathmandu is committed to growing our business through providing our customers with clothing and equipment to fulfil their outdoor needs,” said Caleb Nicolson, general manager group supply chain at Kathmandu. “To ensure we are continually providing customers with the right equipment at the right time in a changing marketplace, Kathmandu is working with Dematic to develop an innovative, efficient new DC that will get our products to customers quicker than ever before.”

The new system will also process orders in a manner which supports efficient in store replenishment explained Darren Rawlinson, Dematic’s Solutions Manager for Integrated Systems.

“Dematic’s solution for Kathmandu utilises the cross belt sorter and iQ software to align the product mix in cartons to a particular area of the store making it easy for retail staff to restock shelves and ensuring customers always have access to the widest selection of products” said Mr Rawlinson.

The Truganina DC is scheduled to go live in the third quarter of 2016.