 Woolworths' new distribution centre (DC), also known as the Midrand Campus, is noteworthy not only for its sheer size and distribution capabilities, but also for its world-standard best practices in terms of social and environmental efficiency and effectiveness.
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The decision to build the R500m facility was driven by a need both to
consolidate Woolworths' distribution effort and to increase capacity to
serve the company's aggressive store roll-out policy. At the same time,
every aspect of the 78,000 sq metre campus in Midrand, Gauteng, was
designed to ensure minimal impact on the surrounding environment and
communities, according to Richard Inskip, Woolworths' executive
director of operations.
"Sustainability has been at the heart of Woolworths since its founding 75 years ago. Therefore, sustainability was the premise for the development of the new distribution centre," he says.
The facility is the largest retail distribution centre in southern Africa, and the storage area one of the largest insulated structures in Africa. The building alone would cover both the Newlands' (Cape Town) rugby and cricket fields. It houses five temperature regimes: ambient areas for equipment and dry goods (including all non-food products), a chilled area of 0°-5°C, a 2,002 sq metre freezer (-30°C), a banana room (16°C), a peri-ambient area and a chocolate and wine store (18°C).
The site was carefully selected for the most cost-effective transportation of goods. It will supply Gauteng, the Free State and 80% of KwaZulu-Natal, as well as Botswana, Mozambique and Swaziland. The aim is to have all stores stocked by opening time each morning.
"The issue of reducing food miles should be high on the list of any retailer," says Inskip. "The location of the distribution centre means that suppliers delivering to Gauteng will drive approximately 9% fewer kilometres to deliver their product. Much of the planning behind the centre flows from Woolworths' supply chain strategy, which aims to transport all products to stores in a single delivery, reducing both energy consumption and damaging gas emissions. The site will result in a general reduction of kilometres travelled for suppliers to effect primary distribution. Taking into account future store development programmes, the site will also result in a considerable reduction in kilometres travelled to stores to effect secondary distribution."
Woolworths' project manager, Johan Shaw, says the challenge of the new facility is to maximise efficiencies and provide ultimate flexibility. The fact that all five temperature storage sections are accommodated under one roof means that with one journey to the centre, trucks can gather all stock required by a store on a daily basis."
About 450 of Woolworth's 700 suppliers are food suppliers who typically deliver goods to the centre every day. Woolworths trucks distribute goods to over 350 stores. The facility thus handles high truck traffic. There are currently 120 dock-leveller doors and design allows for a total turnaround time of 75 minutes. About 100,000 of Woolworths product trays are moved everyday.
Sustainability priorities for the DC included the conservation of energy and water and the elimination of ozone-depleting gases. For example, the refrigeration equipment is operating on ammonia, which is harmless to the ozone layer, instead of damaging CFC gases. Opaque glazing has been installed on the outside of the building to avoid direct sunlight bleaching products in the centre. "This will have a positive spin-off for our employees, says Inskip.
"By maximising sunlight it will make it a more pleasant working environment, as will the fact that the site has been landscaped with extensive areas of water-wise indigenous flora and frost-resistant trees."
Strict environmentally-friendly building methods were used. Materials and equipment were sourced locally to reduce transportation, and displaced rock, earth and soil were incorporated into the landscaping and retaining wall features within the site boundaries.
The principle applied in the design was one of "economy of effort", ensuring optimum flow of people, product and vehicles around and within the facility.
The centre has won the SA Property Assoc's award for the best industrial building of the year.
This is Woolworths' largest property development to date, and provision was made for the DC's extension to meet needs for the next 20 years. The design is such that extensions to the building to create capacity for future needs can be made with minimum effort and with no disruption to operations.
For instance, the 1.1km long platform on which the building is erected makes provision for a 400m extension. There is also space for another 130 dock lever doors.
- Another feather in this project's cap was that it came in on budget and on time - a rare occurrence, says Woolworths. - Iris van Breda
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