Contract logistics solution provider, DHL Supply Chain, has launched a dedicated distribution centre in Truganina, Victoria, to support its operations with the world’s largest toymaker, Mattel.

The 25,690-square-metre warehouse features an automated labelling and sortation system that will reportedly increase efficiencies in Mattel’s supply chain, will consolidate operations from two existing site in Melbourne, and comprise additional dock space for inbound goods and outbound truck loading space.

DHL said the new distribution centre will combine the activities of receiving product from Mattel factories, storing, picking and packing and distributing to Mattel’s customers throughout Australia, including large volumes each year for Christmas season. In addition the facility will provide services for repacking of Mattel products for promotions and in store displays.

"What we have managed to achieve throughout our partnership since 2016 underscores the value that we bring by driving operational excellence and cost optimisation, while simultaneously ensuring that our supply chain practices remain sustainable and environmentally-friendly,” said DHL Supply Chain Australia & New Zealand, Saul Resnick.

"With the upcoming distribution centre and the partnership renewal, we are thrilled to strengthen our collaboration with Mattel. Moving forward, we will continue to provide our supply chain expertise in every aspect possible to support Mattel's growth,” he said.

DHL and Mattel also aim to keep the new warehouse functions eco-friendly, to have sustainable green practices and staying more energy efficient. The facility is fitted with a 100-kilowatt solar panel system and LED lights.

“We are excited about our long-term partnership with DHL,” said Mattel Vice President and Country Manager – Australia & New Zealand, Paul Faulkner.

“We're delighted to work with a partner that not only understands our business and markets, but has the capability to provide strategic warehousing options to deliver a seamless customer experience,” he said. “Supply chain is a massive part of how we connect to our consumer, and DHL enables us to efficiently have the right product at the right place at the right time.”

Mattel was founded in 1945 and is headquartered in El Segundo, California.

According to Q2 2019 financial results, Mattel reported a gross profit of $341.4 million USD ($504.5 million AUD).