How Kmart Australia Cut Logistics Space by 60%

Overview

In the dynamic world of retail, efficient logistics and distribution are essential for success. Kmart Australia, a major discount department store retailer, faced the challenge of optimizing its distribution and fulfillment operations to support a vast store network. This case study explores how Tompkins Robotics' innovative tSort system provided a cutting-edge solution that transformed Kmart's logistics network and delivered significant benefits.

Diverse Product Mix, Increasing Volume

Wesfarmers, a retail division of Kmart, operates over 300 stores in Australia and New Zealand with over 31,000 staff. Their distribution and fulfillment network delivers to high-volume stores with a diverse product mix, requiring unique handling for cases, inner packs, and item sortation to meet the demands of the Kmart store network. Kmart's supply chain leaders were seeking a cost-effective solution to increase facility throughput, address labor gaps, and support the growing store network and volume across their Distribution & Fulfillment (D&F) operations in Australia and New Zealand. 

A Flexible AMR Solution

Through a detailed RFP process, Kmart Australia selected Tompkins Robotics' tSort system as the best-in-class automation solution. This award-winning AMR (Autonomous Mobile Robot) solution was chosen to optimize fulfillment operations and provide numerous benefits for retail replenishment. 

Key Benefits and Results

The implementation of the tSort system delivered substantial improvements to Kmart Australia's operations:

• Rapid Deployment:
  A typical tSort implementation takes less than half the time of traditional sortation systems. This allowed for faster installation between peak seasons, minimizing disruption to Kmart's operations. The start of installation to go-live was less than 5 months, with an operational ramp-up to full production in just a few weeks. 
• Low Capital Investment:
  the tSort system cost roughly half of other large tilt trays or crossbelt sorters. Additional robots can be installed to expand the system, allowing for complete utilization of assets and postponing capital investment.
• Scalability and Portability:
  The tSort solution is fully modular, configurable, and portable. Elements and robots can be easily added, removed, or relocated to meet changing demand and business requirements.
• Wide Range of Capabilities & Applications:
  tSort can process various products and packages in different environments and applications, including polybags, cartons, loose items, and many other product configurations. 
• Higher Capacity in a Smaller Footprint:
  tSort's multi-level design can process more than double the volume in less than 25% of the space of traditional sortation systems. Kmart Australia experienced more than a 60% reduction in required space over traditional solutions. 
• Improved Outcomes:
  Kmart Australia experienced increased throughput to meet store growth and volume, improved inventory accuracy, and an improved financial outcome for the business. 

Customer Testimonial:

Justin Boyd, Kmart Head of Assets, DC Design and Automation, stated, "Tompkins' customer-first approach is refreshing and leads to the team constantly challenging the status quo. The team effort and great attitude has led to an extremely positive customer experience. The project team embedded themselves in the working operation which allowed for a seamless transition". 

Diverse Logistics Network: Ready to Scale

Tompkins Robotics' tSort system has proven to be a transformative solution for Kmart Australia, providing the necessary automation to support a distributed logistics network effectively, and further demonstrating Tompkins Robotics' commitment to delivering innovative and efficient robotic solutions that address the evolving challenges of today's supply chain.

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Next Steps

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