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Foodstuffs North Island’s GM supply chain Vaughan Grant, chief executive 
Chris Quin and GM property development Lindsay Rowles at the sod-turning for the Foodstuffs Fresh extension project in Mangere

Foodstuffs announces expansion plans in the north and south

Foodstuffs North Island has announced that it is extending its Foodstuffs Fresh distribution centre in Mangere, while Foodstuffs South Island has announced it has begun work on a new temperature-controlled distribution centre in Hornby.

A ground-breaking ceremony was held at the Pavilion Drive site in early October to mark the beginning of the Foodstuffs Fresh distribution centre (DC) extension. Foodstuffs North Island chief executive Chris Quin says, “We want to go bigger and do more from this site with the excellent team we have. The work we do here is really important to our success, because fresh produce is so important to our customers.”

The extension to the existing site will cover an area of 6770 sq m and will include 11 new docks. “It’s an investment in our future and will ensure we have the appropriate capacity beyond 2030,” Foodstuffs North Island’s GM supply chain Vaughan Grant says. 

“We are reconfiguring the building, and it will feature three temperature zones, set at two, eight and twelve degrees C. We’re significantly increasing the size of the two-degree room, which allows space for more refrigerated fresh products such as cut fruit and seafood,” he adds.

“Our Fresh DC is a critical part of our supply chain network. High-quality fresh produce gives our stores a competitive advantage and is a strategic growth area for our business.”

A range of environmental improvements will feature in the extension, including rainwater harvesting facilities, enhanced refrigeration efficiency with variable speed drives, and LED lighting throughout.

Foodstuffs North Island will also improve the overall layout of the site, with better entrances and exits for staff and trucks. “We’re introducing a new best-in-class dock design which our truck drivers will appreciate. It’s much simpler to use. We’re also introducing opportunity charging for forklifts and other equipment, so that they can charge in their parking spaces,” Mr Grant says.

The Fresh extension project is part of Foodstuffs North Island’s supply chain transformation programme. It is being carried out by Apollo Projects and is due to be completed in September 2018.

Project Chilly Bin

Foodstuffs South Island has begun work on its new 28,551 sq m temperature-controlled DC in Hornby, with the first stage expected to be complete by August 2018 (with a final completion date of March 2019). Foodstuffs purchased the site in 2010 and began planning for ‘Project Chilly Bin’ in 2014. 

“Our existing temperature-controlled facility is struggling to keep up with demand, particularly in peak trading periods. This new facility will increase our chiller capacity by 100% and our freezer capacity by 50%,” says Foodstuffs South Island CEO Steve Anderson.

“For customers, that means we’ll be able to offer an expanded range of products. For our stores, it means they’ll get those products delivered daily, seven days a week. We’re investing in range and supply chain so that we can get products out to stores even faster,” he adds.

“After the recent expansion of our ambient DC, this is the next logical progression for our supply chain in the South Island. We’ll be able to sell a wider range of fresh products – that includes produce, seafood and meat. We’re investing in the south and making sure our customers are getting the freshest product possible.”
Foodstuffs South Island GM supply chain John Mullins, CEO Steve Anderson and GM property and retail development Roger Davidson at the site of the new temperature-controlled DC in Hornby

In 1999, Foodstuffs South Island purchased an existing chilled facility and adjacent land in Hornby from the NZ Apple and Pear Board. Today, Foodstuffs South Island has 14,500 sq m of temperature-controlled capacity over two sites – 10,500 sq m of chiller space and 4000 sq m of freezer space at Hornby and a further 1500 sq m of chilled space in Carmen Road. 

“The existing three chiller rooms at Hornby will be demolished and will make way for a new car parking area. The 4000 sq m of existing freezer space will remain alongside the 24,551 sq m of new construction,” says Mr Anderson.

“It will be an interesting logistical challenge, keeping our Hornby DC operating effectively while the construction work goes on. Delivery vehicle access will be a little tight at times, but it will all be worth it in the long run.”

The Foodstuffs South Island DC will be one of the biggest of its kind in New Zealand and will include some world-class features. It will have four large chiller chambers and 16 dock doors. The design includes two 1000 Kva generators that could keep the chilled and frozen areas running in the event of a power failure.
 
“To get to this point, we’ve analysed what our future volumes and capacity requirements are likely to be. We’ve taken guidance from industry consultants and have visited other chiller and freezer operations to understand best practice. We have allowed space for our business to grow,” says Mr Anderson.


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