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Synnex splashes $32 million on new logistics facility

Distributor plans to make a significant investment in systems and technology, automating processes so that customers will receive a quicker and more efficient service

Synnex intends to spend about $32 million on building its first automated warehouse in NSW.

It has purchased a new site for $12 million located in Lidcombe, measures 21,110sqm and the distributor plans to invest a further $20 million to build the logistics centre.

Synnex CEO, Kee Ong, told ARN it would take 12 months to build the facility and it expects to move in by 2012.

“It’s our first automated warehouse that is fully computerised and controlled,” Ong said. “We do have a warehouse that we lease in NSW, but we have a lot of high-tech systems, so we need to have our own site to install the powerful and heavy machinery.”

The new warehouse will not only be able to house more stock, but Synnex will be making a significant investment in new systems and technology, automating processes so that customers will receive a quicker and more efficient service.

It will also create an extra 100 jobs in Sydney over the next three years.

Ong said it would need to employ more site managers, product managers and planners. Synnex has about 350 staff across the country.

“To support our growth in NSW and Queensland, it’s important that we continue to invest in our infrastructure, logistics capability, business processes and our people. The new logistics centre in Sydney will be the first of its kind in Australia and will enable us to service our customers better and respond more quickly to their needs,” Ong said.

This follows a $2.5 million investment made last year to add another 12 trucks to the Synnex national fleet and expand the company’s headquarters in Melbourne to house another 100 staff over the next three years.

In May, Synnex hired its first dedicated national sales manager, Tony Ignatavicius.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: ARN, Synnex, Synnex Australia
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