SPAR opens new distribution centre in Sydney

SPAR Australia has opened a new distribution centre in Sydney, enabling the supermarket chain to service its NSW branches from the local DC instead of Queensland.

For months SPAR Australia has been working to secure a suitable facility in Sydney to improve the service it provides to customers in NSW & ACT. Both existing and future SPAR Australia customers will benefit from the greater logistics efficiencies the new DC will provide for its retailers.

Previously all stock had been sourced from SPAR Australia’s distribution centre in Queensland, but now the Sydney facility will allow efficient cross docking of goods from Queensland as well as the ability to pick/pack up to 1,000 SKU of grocery, general merchandise, perishable and produce items.

The facility is capable of handling 80% of SPAR Australia’s current retailer

volume and, with cross docking the tail, this will deliver a cheaper cost-to-serve NSW & ACT independent retailers.

The new facility has direct access to the M4 and is in close proximity to the M5, giving it easy access to Sydney’s main arterials.

Grant Gearing, SPAR Australia’s national logistics manager said: “This will deliver a service that will take us into the next stage of supply chain logistics. The facility we have acquired is brand new and has not only enhanced our service in cross-docking but will deliver the important ability to pick/pack key lines.”

Operations commenced on 29 August and as of the first order, the lead time to Sydney stores was cut by six hours, regional NSW by eight hours and ACT stores by a massive 24 hours.

Since December 2010, SPAR Australia says it has converted 17 Metcash-supplied stores to the group and has welcomed another 10 independent retailers.

Since becoming managing director of SPAR Australia in December 2010, Lou Jardin has vowed to continue to provide competition at the wholesale level, ensuring independent retailers are able to source deals that allow them to compete in the market and ensure the survival of family businesses in the grocery industry.

“SPAR’s business principle of supporting independent retailers through the motto of ‘a family business helping family businesses’ is one of the key reasons why independent retailers are joining the SPAR Australia family,” Mr Jardin said.

There are currently over 15,160 SPAR stores across 34 countries.