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Inside Kmart Australia's High-Volume Fulfillment Transformation

 

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

Adding another layer of complexity, Kmart's new distribution and fulfillment hub was being developed during the COVID-19 pandemic, creating additional challenges around installation, testing, and deployment. 

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

 
tSort sortation automation system Kmart
tSort sorting automation system Kmart
tSort roboticssorting automation system Kmart
Sortation system automation solution Kmart
tSort sorting automation solution Kmart
tSort warehouse sorting automation system Kmart
The Solution

Tompkins Robotics tSort

Kmart selected Tompkins Robotics tSort as the foundation for its automated sortation operation. The system uses autonomous mobile robots to transport products to designated store and department destinations, creating a flexible alternative to traditional fixed sortation systems.

The initial deployment featured 92 autonomous robots and six dual induction stations, with three stations positioned above three lower stations to maximize vertical space while minimizing the system's footprint.

Integrated weight scales and dimension scanners capture product information during induction, supporting greater inventory accuracy. The system also provides flexible handling for different product types, with fragile and oversized products directed to pallet-based destinations for safer handling.

Products are sorted by store department, helping streamline downstream stocking and make it easier for store associates to put inventory away once shipments arrive.

The system was brought from installation to full-volume production in less than five months, with full ramp-up achieved within weeks. Following the success of the initial deployment, Kmart expanded its use of tSort with two additional installations, incorporating both conveyor-fed and tipper-fed induction methods.

 

3 tSort Systems: Combined Specifications
238

Robots

18

Induction stations

337

Sortation Destinations

7,244

Sorts Per Hour Capacity

 

 

The Results

Improved Throughput, Flexibility, and Cost Efficiency

  • 2x capacity increase across the site

  • 50% reduction in capital investment compared with traditional sorter alternatives
  • 60%+ reduction in required footprint
  • Less than 5 months from installation to full-volume production
  • 3 tSort installations deployed as Kmart expanded its automation strategy
  • Improved inventory accuracy through integrated weighing and dimensioning
  • Flexible handling for cases, inner packs, individual items, fragile products, and oversized products

“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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