Blog | Insights on Robotics & Automation in Supply Chain

Inside Kmart Australia's High-Volume Fulfillment Transformation

Written by Tompkins Robotics | Mar 6, 2024
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.

 

 

 

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

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