Lion to outsource WA dairy warehousing to Linfox
The move is expected to provide a more effecient route to market to better serve customers
Lion Dairy and Drinks (LDD) has announced a transformational investment of $40m over three years to underpin its dairy growth in the Western Australian market, which includes outsourcing its warehouse operations to Linfox
The investment will focus on delivering a comprehensive modernisation of the Bentley dairy processing plant in Perth, together with new manufacturing capability and a more efficient route to market to better serve customers and consumers across the state.
LDD also plans to improve the efficiency and flexibility of its logistics and distribution arrangements to improve its overall customer service.
The company is planning to outsource its warehouse operations to Linfox in an attempt to make use of the latter’s expertise to drive greater efficiencies around the business.
As a result of this change all roles within the logistics function onsite at Bentley will be made redundant.
"This transformational $40m investment makes clear LDD’s intent to compete and grow our dairy business in Western Australia over the long term," LDD MD Peter West says.
"Today’s announcement is about ensuring we remain a sustainable and viable operator in the Western Australian dairy market today and in the future.
The outsourcing of the warehouse operations is no reflection on the people working in this area at the Bentley site – the contribution that they have made to our site over many years has been much appreciated," West said.
The company says all its employees whose job is affected as a result of the move will receive full entitlements and will be offered outplacement support.
The company will also consolidate its existing multiple depots to a single new depot on site at Bentley.
A planned sale of surplus land assets will fund a transformation of the Bentley site over three years, with improvements to include:
- construction of a new WA distribution centre
- installation of one-way packaging technology, and a new filling line, to expand manufacturing capacity in milk-based beverages and enhance LDD’s efficiency in white milk
- significant upgrade of buildings and amenities
- new internal roads and a new exit to enhance driver safety and reduce traffic in adjacent residential areas.
The $40m investment is in addition to the $1.5 million site investment made in the past 12 months.