RIYADH – Landmark Arabia - the Saudi arm of Landmark Group marked a significant milestone with the recent opening of its fully-automated mega distribution centre (DC) in Dubai, UAE – the largest in the GCC region.

With distribution being the backbone of retail, the Group invested over SR1 billion in the facility with the aim of strengthening its supply chain capabilities and establishing a logistics and distribution hub for the region.

According to a study by Harvard Business Review, out-of-stock situations can cause sales losses of up to four per cent for typical retailers and have a negative effect on customer loyalty. With over 850 stores serving more than 10 million customers in Saudi Arabia, the leading retail and hospitality conglomerate is ideally positioned to provide unparalleled services through maximizing delivery speed of the latest collections and availability of its products across the country.

Renuka Jagtiani, Chairwoman and CEO of Landmark Group, said: “The opening of the Mega DC marks a significant milestone for Landmark Group. As a brand present in this region for over two decades, we remain committed to this market and are always looking ahead. Customers today expect speed, convenience and transparency; therefore it is important to innovate along the supply chain and adapt to the factors influencing the modern retail industry. We are proud to launch this fully automated facility that testifies to our commitment to serving our customers, ensuring speed and agility of operations and projects the future of the supply chain in our region.”

The Mega DC is designed to process 300 million units per year, interchangeably handling pallets, cartons, pieces and garments-on-hanger (GOH). Built with a storage capacity of 2.2 million cartons and two million GOH, the new facility has 10 automated and three manual docks that can receive over 74,000 cartons per day. The outbound area features 36 docks, of which 10 are dedicated for GOH, and can handle up to 90,000 cartons and 250,000 GOH a day.

Boom conveyors ensure faster offloading of containers, handled across 33 levels with 1,300 robotic multi-shuttles, 94 lifts and 28 workstations.

Another first for the GCC region is the DC’s high-bay warehouse. At 43 metres, it is the tallest warehouse in the region and the first rack-clad building in the Middle East. Its automatic storage and retrieval system can store over 36,000 pallet positions, serviced by 41-metre tower cranes.

The Mega DC is also the first distribution centre in the region to use a hypoxic fire prevention system with an oxygen-controlled environment.

At the heart of the facility is a super-fast and efficient shuttle system for automated handling of cartons and totes with inter-aisle transfer technology.

Mihin Shah, Chief Supply Chain Officer at Landmark Group, said: “The Mega DC is a reflection of Landmark Group’s investment in the future. We have built the facility with a focus on digital innovation, using best-in-class robotics and automation that redefines the supply chain in the region. In a fast-paced retail world, where the need for speed, flexibility and agility is higher than ever before, the Mega DC has been designed to meet the changing market needs, increase productivity and cater to the business of tomorrow.”

In line with the Group’s sustainability journey, the Mega DC holds an Environmental, Health and Safety (EHS) certification and plans to meet 50 per cent of its energy requirements through an 8.2 MWp rooftop solar system – the largest in the region. — SG