Fonterra consolidating warehouses with new distribution center at Auckland Airport business park

By Jim Cornall

- Last updated on GMT

Fonterra's new distribution center at the Auckland Airport business park will open in 2017.
Fonterra's new distribution center at the Auckland Airport business park will open in 2017.

Related tags Supply chain management

Auckland Airport is to build a new distribution centre for Fonterra’s New Zealand consumer business (Fonterra Brands New Zealand), the two companies have announced.

Fonterra Brands New Zealand (FBNZ) says it will be able to consolidate multiple warehouses into a single, multi-temperature space.

Leon Clement, FBNZ’s managing director, said the move will consolidate four of its own warehouses, and three from third parties, into one, optimizing storage and reducing complexity in freight movements.

“Our new distribution center, which will be purpose built for us, will help us deliver a step change in service to our export and domestic retail and foodservice customers.”

Increase in efficiency

He said that having a single dispatch point in Auckland for all dairy products, except ice cream, will improve the efficiency of the North Island supply chain operation.

“Instead of supplying a customer order from two or three distribution centers we will be able to supply it from one, reducing movements on busy roads and improving service levels for customers.

“We operate in a high-demand category and having the latest warehouse technology will also enable us to meet our customers’ expectations around the product mix they want when they want it.”

Lease from 2017

Mark Thomson, Auckland Airport’s general manager - property, says the partnership is a welcome addition to Auckland Airport’s growing property portfolio.

“We are thrilled to be partnering with Fonterra to provide facilities that will directly benefit its customers. This is a long term relationship that complements our existing asset base and customer mix,”​ Thomson said.

FBNZ is scheduled to occupy the new 11,000sqm facility, which will be built on Timberley Road as part of Auckland Airport’s industrial business park, The Landing, under a long-term lease from March 2017. 

Related topics Business Oceania Supply chain Dairy

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