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Toll on front foot with Adidas

Eighteen months since winning the Adidas contract, Toll has built a “world-class” warehouse in Melbourne’s Truganina, to be launched next month.

The 13,000 square metre warehouse features state-of-the-art technology, increasing the speed to market by sixfold, the company says.

By Ruza Zivkusic-Aftasi | August 28, 2012

Eighteen months since winning the Adidas contract, Toll has built a “world-class” warehouse in Melbourne’s Truganina, to be launched next month.

The 13,000 square-metre warehouse features state-of-the-art technology, increasing the speed to market by sixfold, the company says.

The ability to deliver more productivity, accuracy and safety thanks to the ergonomic goods-to-person (GTP) stations and the Dematic Multishuttle, which operates at around 2,000 dual cycle tote retrievals per hour, has seen Adidas’s New Zealand warehouse consolidated into the Truganina site.

Previously under Linfox arrangement, Adidas approved Toll’s tender at the end of the five-year contract because of its established relationship with Nike and Foot Locker, Adidas says.

Toll Global Logistics’s Customised Solutions has designed the warehouse and Toll Global Forwarding will deliver the freight.

The two companies came together because of Toll’s ability to demonstrate technological experience and Adidas’s relationship with freight carrier Toll IPEC, Adidas Supply Chain Director Jeremy Owen says.

“It was about integrating the network,” Owen adds.

“The other reason was because Toll already looks after Nike and the distribution network and is able to deliver to small shop fronts, shopping centres and malls.

“They’re used to working in the small sport industries that have lots of small pieces rather than fast-moving consumer goods where you’re picking up a pallet of Cornflakes and moving it.”

During its annual report meeting yesterday, Toll Managing Director Brian Kruger described the Adidas contract win as “one of the most exciting” of the year.

“We are pretty excited about this contract for a few reasons. The level of automation will make this one of the most efficient and productive warehouse of its kind in the country,” Kruger says.

“It’s a great example of our integrated service offering. We are not only managing the warehouse component of Adidas but we are also providing all of the inbound and outbound movements using other businesses in Toll.”

The GTP stations can handle 600 lines per hour and are able to pick 40,000 lines and 86,000 units each day.

The warehouse will be launched on September 24.

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