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Australia Distribution Redesign Reduced Duties and Improved Order Fulfillment

A German sourcing company supplying major Australian discount retailers needed to simplify a complex import and distribution model. Optimized value-added services, duty planning, and distribution design reduced cost and improved fulfillment reliability.

Table of contents

Customer Overview

Challenges

Solution

Results

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Customer Overview

  • Major supplier to Australian discount supermarket chains
  • Commodity mix included general merchandise and packaged goods
  • Network served five distribution centers on Australia’s east coast

Challenges

  • High internal distribution cost between DCs
  • Higher import duties tied to limited local duty expertise
  • Strict fulfillment requirements for value-added services and pallet configuration

Solution

  • Conducted a duty-savings study using sourcing-country exemptions and FTA opportunities
  • Performed pallet optimization, repacking, labeling, and other value-added services
  • Planned shipments by final destination and nearest discharge port, with warehousing and distribution to five DCs

Results

  • Achieved duty savings and pallet-packing efficiencies
  • Improved customs clearance through clearer origin and destination requirements
  • Met strict order fulfillment requirements for palletized deliveries

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