Case Study 2 - Murray Goulburn
Murray Goulburn Co-operative was formed in 1950 and has since grown to become the largest processor of milk in Australia and the nation’s largest exporter of processed food, so is extremely important to the national economy. The Co-operative is wholly owned by Australian dairy farmers. With eight manufacturing plants located throughout Victoria, Murray Goulburn processes over 35% of the nation’s milk supply into quality products which are sold in both domestic and export markets.
“We have a very good working relationship with Pullars. We have very few customer complaints from their facility and always find them quick to respond to our needs ”
Phil Saunders, National Storage and Distribution Manager
Business Challenge
Murray Goulburn’s growth and continuing success has led to a new challenge: finding enough storage space to accommodate the increasing levels of refrigerated product. In particular, Murray Goulburn needed a place to store overflows of cheese, and to handle seasonal peaks and troughs. This is where P. Pullar & Co (Pullars) stepped in, providing the co-operative with just the solution they were looking for.
The Solution
Pullars’ cold storage facility was originally established in 1950. Then, in 2002, the facility underwent a major, multi-million dollar redevelopment, incorporating the latest materials handling and automation technologies. The site now boasts much greater storage capacity as well as cuttingedge technology, enabling stock to be delivered, dispatched and monitored in real time and with the highest level of integrity and safety. The facility has 24 rooms and a capacity of 16,000 pallets (15,000 permanent Dexion racks and 1,000 temporary racks). It has two fully adjustable rear loading/ unloading docks for pan trailers and a new loading/unloading awning with capabilities for three trucks. It is modern, sophisticated and clean, employing efficient quality processes. Room temperatures are monitored by Tempscan and are recorded every hour.
The cold store can accommodate anything that needs to be stored at -2 to +20 degrees. Target produce includes fruit, cheese (bulk storage for maturation), butter, milk, alcohol – even Easter eggs. Pullars owns two prime movers and one refrigerated tautliner. With this magnificent new facility in place, Pullars were able to take up to 15,000 pallets, at various times, from Murray Goulburn, thereby greatly relieving the pressure on the co-operative’s internal supply chain. But Pullars were able to do a lot more than simply act as a storage facility. It was vital for Pullars to retrieve product at short notice for Murray Goulburn, and get cartons out quickly to perform carton inspections. Pullars could easily accommodate these needs. Another valueadd was Pullars’ ability to export -2 degrees products on Murray Goulburn’s behalf. Being located in Cobram close to Murray Goulburn has also been a strategic benefit. As cheese may need to be matured over many months, and possibly be further processed at the Cobram factory, the ability to move product quickly between the two operations was an essential component in the drive to minimise overall supply chain costs. In addition, Pullars’ investment in the same highly sophisticated warehousing and materials handling system as that employed by Murray Goulburn has further streamlined processes between the two organisations.
Additional Benefits
Among the additional benefits that clients such as Murray Goulburn can enjoy include:
- Inventory management with real-time stock visibility, incorporating live feeds back to the client, enabling them to see exactly where each pallet is located within the storage facility
- Security of produce – automation and safety processes ensure all produce is handled with care and integrity
- Excellent traceability over the picking operations; greater accuracy; decreased loss of product
- Improved product safety achieved through sprinkler system throughout the facility
“Pullars store our products the way we want them stored and provide us with total supply chain services and the systems to support it. They are very professional and always bend over backwards to help us ”
Andrew Rushby, Storage and Distribution Manager, Murray Goulburn Co Op
The Solution (continued)
This system (provided by Melbourne firm Radio Terminal Systems) uses mobile and fixed scanners, sensors and pickers to handle the entire dispatch, delivery and warehousing process, and enables a high degree of synchronicity between the two companies.
This facility incorporates many state-of-the-art features, including:
- B-double compatible access points and awnings, allowing for easy, sealed access for cars and trucks entering and exiting the site
- Increased focus on food safety for quality control
- Dock levellers enable containers to be loaded very quickly, which enhances the food quality supply chain
- Sprinkler systems in place to lower risk to product safety, staff and clients on-site
- Stock control handled by RF terminals
P Pullar & Co is a family owned orchard, with a large cold store, packaging and warehouse facility. The orchard produces apples, pears, peaches, plums and cherries. The fruit is then sold nationally around Australia and is exported to Singapore, Hong Kong, Malaysia, Europe, Scandinavia, United Kingdom, Chile. Argentina and South Africa. The cold storage facility has 24 rooms and a capacity of 16,000 pallets, with latest automation and technology to track product status, real time. The operation owns two prime movers and one refrigerated taut liner to manage freight.
