Preparations to commission Dandenong South Distribution Centre well underway

As HSV continues its work with Monash Health on its purchasing and logistics integration, preparations are well underway to bring the Dandenong South Distribution Centre (DC) online by late 2024.

With pallet racking installed, the 10,000 sqm Dandenong warehouse is just under half the size of our Derrimut DC with capacity for 4,600 pallets.

HSV’s Dandenong South DC will initially provide services to Monash Health, Melbourne’s largest health service, as part of a broader consolidation of health purchasing and logistics activity across the state. This is a major priority for HSV this year and our Supply Chain team continues to work hard with all stakeholders to ensure a smooth integration.

HSV Head of Distribution Centre Operations Josh Lotter says the team has made significant progress including installing additional racking to create space for another 1,000 pallets – increasing warehouse capacity by 20 per cent.

“We have adjusted the existing racking height and we’re currently working to install safety barriers, floor line safety marking and material handling equipment charging bays,” he says.

“Setting up our new DC with the correct processes and equipment means we can be confident of providing a high level of service to our customers.

The office space will also be fitted out in the next couple of weeks including meeting rooms being set up with AV equipment,” says Josh.

Other works completed include installation of workstations and wireless access points throughout the warehouse to ensure we have the appropriate access to computers, printers and RF (radio frequency) scanners, all of which support safety and efficiency of operations.

From September there will be a dedicated team of 25-30 staff members based at Dandenong South DC, including pickers, forklift drivers and team leaders, and recruitment has already commenced for several positions.

Josh says there will be around 2,000 SKUs or product lines housed at Dandenong South with the warehouse handling around 70 per cent of the order volume that the Derrimut DC handles each day. 

In addition to its work with Monash Health, HSV is working with metropolitan health services on future consolidation programs, as well as engaging in preliminary discussions with regional health services.

Dandenong South Distribution Centre facts at a glance. Dandenong South DC – 10,000 sqm approx. Derrimut DC – 22,500 sqm approx. The MCG oval is 22,500 sqm, which means HSV’s warehouse space is approximately 1.5 MCGs. It’s estimated around 7,000 lines will be picked each week.