Mondelez boosts distribution with Swisslog automation solution
Intralogistics automation specialist Swisslog has completed a major warehouse solution for Mondelēz at its new national distribution centre (DC) in Truganina, Victoria.
The build is part of a $130 million supply chain upgrade designed to centralise the company’s confectionery logistics and improve national throughput across core brands including Cadbury, Pascall and The Natural Confectionery Company. The automated storage and retrieval system (ASRS) now serves 56,100 pallet locations in a high bay warehouse zone, with capacity to expand to 62,000 as demand increases. The site, located approximately 25km west of the Melbourne CBD, will allow Mondelēz to consolidate multiple Victorian distribution centres and offsite storage facilities into a single, purpose-built location.
“This is the largest in-house automated warehouse Mondelēz has delivered in the region – it’s not operated through a third-party logistics partner,” says Swisslog managing director for Australia and New Zealand, Dan Ulmamei. “We’re proud to have delivered the solution using local teams across design, controls, software and integration.”
The Truganina site marks Mondelēz’s first fully national DC in Australia, reflecting the company’s ongoing investment in long-term supply chain resilience. In 2024, Mondelēz reported global net revenues of approximately US$36.4 billion, holding leading market positions in biscuits and chocolate worldwide. Its local presence includes some of the country’s most well-known snack brands, with distribution volumes expected to rise steadily in coming years.
Swisslog won the competitive tender for the automation solution after demonstrating the flexibility and long-term performance of its SynQ-powered platform. According to Ulmamei, the company’s ability to deliver an end-to-end solution with local capability was a key differentiator. “Mondelēz needed a system that could handle both seasonal and non-seasonal stock concurrently, while increasing distribution efficiency and maximising high-density storage capacity,” he says. “It was also critical that we could build in redundancy and performance headroom, so the system could scale with demand.”
The solution includes 11 Vectura vertical stacker cranes – each 32 metres tall – capable of double-deep load handling. These are paired with an inverted monorail system using 22 dual-load trollies, 16 dual pallet flow lanes, 490 metres of pallet conveyor, and 56,100 pallet locations configured in high bay storage. The SynQ warehouse execution system (WES) orchestrates operations and interfaces with Mondelēz’s broader enterprise systems.
The automation setup delivers a designed throughput of 218 inbound and 255 outbound pallets per hour. According to Mondelēz, the configuration offers operational redundancy across key material flow systems, with extra capacity built into the cranes, monorails and conveyors to support business continuity in high-demand periods.
Wayne Angus, supply chain vice president for Mondelēz (Australia, New Zealand and Japan), says the project supports both current and future operational goals. “This new facility increases our network-wide storage capacity while improving overall efficiency. We selected Swisslog for their ability to deliver a flexible, scalable system – one that can respond to both growth and changing consumer demand.”
He says the automation project is also designed to enhance safety, upskill the team, reduce truck turnaround times and align with sustainability objectives. “The solution reduces manual handling and eliminates common warehouse errors. It enables us to redeploy labour into more value-adding roles and build automation capability within our workforce.
“Aligned with our net zero carbon goals, the facility uses 100% renewable electricity and includes rooftop solar generation capacity of approximately 1 MW – expected to meet around 30% of total energy demand. The site is also targeting a 5 Green Star Design Rating from the Green Building Council Australia.”
The dual-deep ASRS design delivers a balance of space utilisation and selectivity. By removing double-handling across multiple sites, the system allows Mondelēz to streamline inventory flows while retaining SKU access flexibility. The overall facility design supports consolidated pick and pack zones, cross-docking, and strategic replenishment staging.
“Swisslog’s solution gave us strong coverage for peak periods, seasonal spikes and high-SKU throughput,” Angus says. “This is essential when working with short shelf-life products across diverse product lines.”
Swisslog’s modular SynQ platform forms the operational backbone of the site, managing both automated and manual zones. The platform acts as WMS, WES and WCS – and can integrate with ERP and e-commerce systems to support full warehouse intelligence. “SynQ is designed to synchronise complex warehouse activities with high visibility and control,” says Ulmamei. “It also includes an independent business intelligence suite that supports decision-making, forecasting and performance benchmarking.”
The platform has been implemented globally in hundreds of automated facilities and is supported by a dedicated software team of more than 500 engineers. In the case of Mondelēz, the SynQ system manages crane movements, inventory logic, monorail coordination, and real-time reporting through a unified operational interface.
“This is about working smarter, not harder,” Ulmamei says. “SynQ enables Mondelēz to keep warehouse efficiency high while simplifying operational oversight.”
The entire solution was delivered by Swisslog’s Australia and New Zealand division, with engineering, installation, commissioning and software integration completed using local resources. Ulmamei says this was a key factor for Mondelēz, which sought a hands-on partner to support long-term serviceability and knowledge retention. “This wasn’t a fly-in, fly-out model. It was developed and implemented on the ground – with all the necessary expertise available locally. That makes a big difference when you’re building for the future.”
Swisslog and Mondelēz showcased the system in July, ahead of its full operational rollout, with leadership from both organisations present at the launch. “Our customers expect product availability and consistency across all channels,” says Angus. “With this investment, we’re positioning our supply chain to deliver that – now and into the future.”