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Inside Kmart Australia's High-Volume Fulfillment Transformation

Picture of Tompkins Robotics Tompkins Robotics Mar 5, 2024

Case Study Retail
About Kmart

Leading Discount Retailer

Kmart Australia, part of Wesfarmers, is a leading discount retailer operating more than 300 stores across Australia and New Zealand. Known for its high-volume, fast-moving product assortment, Kmart relies on efficient, scalable distribution and fulfillment operations to keep stores consistently stocked and support ongoing growth.

 

The Challenge

Scaling Store Replenishment Across a Complex Network

Kmart’s distribution network supports over 300 stores and tens of thousands of SKUs across a diverse product mix. This created several operational challenges:

  • Managing high volumes of cases, inner packs, and eaches

  • Meeting increasing throughput demands driven by store growth

  • Addressing ongoing labor constraints

  • Optimizing space within existing facilities

  • Controlling capital investment while expanding capacity

Kmart needed a flexible, cost-effective automation solution that could scale with demand while maintaining operational efficiency.

 
The Solution

Tompkins Robotics tSort

Following a competitive RFP process, Kmart selected Tompkins Robotics’ tSort system—an autonomous mobile robot (AMR)-based sortation solution designed for flexibility, scalability, and rapid deployment.

The system enabled Kmart to streamline store replenishment by efficiently sorting a wide range of product types while adapting to fluctuating volumes.

 

tSort System Specifications
46

Robots

5

Induction stations

74

Sortation Destinations

2,640

Sorts Per Hour Capacity

 

 

The Results

Improved Throughput, Flexibility, and Cost Efficiency

  • Accelerated deployment: Went from installation to go-live in under 5 months, with full ramp-up achieved within weeks

  • Reduced capital costs: Approximately 50% lower investment compared to traditional tilt-tray or crossbelt systems

  • Increased scalability: Modular design free from fixed infrastructure allows robots and system components to be added or reconfigured as demand changes

  • Maximized space utilization: Reduced required footprint by more than 60% while increasing processing capacity

  • Expanded product handling: Supports cartons, polybags, loose items, and mixed packaging formats

  • Improved operational performance: Increased throughput, enhanced inventory accuracy, and stronger overall financial outcomes

“Tompkins’ customer-first approach is refreshing and leads to the team constantly challenging the status quo. The team effort and great attitude created an extremely positive experience, and their ability to embed within our operation enabled a seamless transition.”

Dean Goulding, Head of Assets, DC Design and Automation at Kmart

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