Bolloré Logistics Singapore will build its first automation facility in partnership with French luxury products group LVMH.

According to Bolloré, the 20,000-square-metre facility has the support of the Singapore Economic Development Board and will be built with an investment of S$10 million (US$7.2 million) between Bolloré Logistics and LVMH as part of a long-term partnership to drive productivity and increase space efficiency.

“Automation is the key for Singapore’s logistics sector to cope with emerging patterns globally,” said Cyril Dumon, chief executive officer of Bolloré Logistics Asia Pacific. “The setup will be housed in Bolloré Logistics Green Hub, our high-tech logistics facility in Pioneer Turn, and we are happy to announce that the co-development of this automation has secured a long-term commitment from LVMH. Bolloré Logistics strives to be at the forefront of innovation and prides itself in developing advanced supply chains for its customers.”

The facility, which is scheduled to be completed in January 2018, will be jointly designed by Bolloré, LVMH and automated supply chain technology provider Dematic.

“The close partnership between LVMH and Bolloré Logistics has strongly supported the growth of the business in the last 15 years,” said Guillaume Mechain, supply chain director of LVMH in Asia Pacific. “With the introduction of automation, it further reinforces our connections and emphasizes our expertise on safety, quality, service and efficiency for the next 10 years.”

A 12,000-tote multi-shuttle system from Dematic will increase efficiency and improve throughput by up to 10 times compared to conventional warehousing methods.

“Working closely together with Bolloré Logistics, we have developed an innovative automated solution that will bring tremendous improvements in productivity, accuracy and space efficiency,” said Michael Bradshaw, director of Dematic SEA. “This project represents a number of industry firsts both in Singapore and in the region and we are delighted to be involved with the Bolloré Logistics team in designing, delivering and supporting the project.”

The new facility will enable Bolloré to prepare e-commerce orders more quickly and accurately. It will also allow for higher storage density and improve lead time while using only half of the existing manpower resources.

“Bolloré Logistics strongly believes that innovation starts from the bottom and has invested in various training and developmental programmes within the company over the years,” said Fabien Giordano, managing director of Bolloré Logistics Singapore. “Our objective is to empower our staff. As part of change management, Bolloré Logistics has initiated several HR initiatives and a dedicated pilot programme known as ‘Level Up.’ The programme, which includes a variety of technical and soft-skill training, is specifically designed to equip our staff with necessary skills to cope with challenges that may come with automation.”

The 42,000-square-metre Green Hub in Pioneer Turn was launched in 2012 and serves as a regional distribution hub for multinational corporations, according to Bolloré.