CoolDrive selects Dematic for automated Victoria distribution hub

CoolDrive Auto Parts has selected Dematic to supply a high-performance intralogistics solution for its new distribution centre in Victoria.

The agreement will see Dematic provide its Goods-to-Person (GTP) automation system, as well as conveyor sortation technology, at CoolDrive's new greenfield facility. The project will consolidate CoolDrive's three current Victorian sites into a single automated hub. ThreeSixty Supply Chain Group is collaborating on the development of the new site.

According to CoolDrive, the move towards automation follows a significant period of growth, resulting in the need to manage thousands of unique stock keeping units (SKUs) spanning multiple product categories. To support this growth, the company had previously expanded storage across additional sites. However, this approach led to operational fragmentation, multiple handling steps, and efficiency challenges across order fulfilment.

CoolDrive's expanding inventory volumes prompted the search for infrastructure with better scalability and consolidation. Tim Blanchard, Chief Operating Officer of CoolDrive Auto Parts, said automation was required to support current and future business demands.

"CoolDrive has grown considerably in recent years and needed a supply chain solution that could keep pace," said Tim Blanchard, COO of CoolDrive Auto Parts. "This new facility is a major step forward in our commitment to delivering fast, accurate, and efficient service to our customers. Dematic's deep operational understanding and experience integrating with different platforms made them a natural fit for the project."

The centrepiece of the project is Dematic's AutoStore system, which is designed to optimise split case picking and final order sortation processes while conserving warehouse floor space. The automated system aims to reduce manual handling, streamline workflows and create a foundation for scalable growth over time.

Key benefits identified by CoolDrive include a reduced warehouse footprint, increased labour efficiency and greater resilience in managing periods of peak demand. The AutoStore solution is designed to grow alongside the business, with modular additions enabling phased expansion of storage and throughput capacity with minimal operational disruption.

Dematic is integrating the new automated systems with CoolDrive's existing warehouse management system (WMS). The approach is informed by the company's prior experience with a similar GTP solution for another local spare parts distributor running the same WMS Host, which is expected to accelerate the implementation process and minimise associated risks.

Terry Jamieson, Business Development Manager at Dematic, explained the significance of the project and the benefits of the selected technology.

"We are proud to partner with CoolDrive on this exciting project," said Terry Jamieson, Business Development Manager at Dematic. "AutoStore is a powerful platform for businesses dealing with high SKU volumes, and our experience across similar applications in the region has shown that it delivers real, measurable value. This solution will give CoolDrive the operational agility they need to continue leading in a competitive market."

The construction and automation of the distribution centre are expected to position CoolDrive to better meet customer expectations and provide a supply chain capable of supporting projected business growth. The company is also aiming to achieve improved environmental outcomes by streamlining operations and reducing the need for physical expansion.

The new facility is scheduled for completion in August 2026.