- Global athleisure brand consolidates two overcrowded sites into a purpose-built 23,000sqm distribution centre in Ravenhall
- Transformation in partnership with ThreeSixty Supply Chain Group delivers five-fold capacity increase while maintaining zero customer service disruption
- New facility positions lululemon for future automation and continued growth across Australia
Lululemon has successfully transformed its Australian distribution operations, moving from two overcrowded facilities to a purpose-built 23,000 square metre distribution centre in Ravenhall.
The 26-month project was delivered in conjunction with ThreeSixty Supply Chain Group, achieving a seamless transition to a greenfield site without disruption to lululemon’s retail or e-commerce customers.
Experiencing 35% growth year-on-year, lululemon had outgrown its existing facilities in Derrimut and Laverton, operating at maximum capacity with limited dock capacity and no room for expansion. The Ravenhall facility is five times larger than the combined previous sites, featuring full cube utilisation, flexible layouts, and capacity for future automation. Lululemon Staff now benefit from world-class amenities, including a gym/yoga studio, meeting spaces, a prayer room, and a parents room.
A two-phase approach allowed lululemon to move operations first, then add automation capabilities without disrupting business continuity. The first phase, completed prior to 2023 peak season, focused on building and transitioning to the new facility. Phase 2, completed in August 2024, introduced a two-level mezzanine to the new facility, adding approximately 12,000 square metres and automation capabilities that have significantly exceeded performance expectations.
“It’s the most aesthetically pleasing building we’ve had in our network. Of all the distribution centres we built during my time at lululemon — and there were ten — this was one of the most pleasant and straightforward projects. ThreeSixty handled everything with professionalism, and major risks were managed exceptionally well.”
Scott Munn, former Senior Director Fulfillment Programs lululemon
When the site’s permanent power connection was delayed, contingency plans allowed lululemon to operate on generator power for an extended period, involving detailed electrical load planning and coordination with diesel suppliers. During internal construction, ThreeSixty and lululemon coordinated multiple workstreams, including building construction, racking installation, IT and electrical fit-out, WMS configuration, procurement of materials handling equipment, office fit-out, and comprehensive change management for staff transitioning to the new location.
“The benchmark for me is that the customer — whether that’s lululemon’s stores or their online shoppers — doesn’t notice that anything actually happened. And they didn’t. We moved the entire operation without disruption.”
Andrew Helm, Project Manager, ThreeSixty Supply Chain Group
The Ravenhall facility has positioned lululemon for future expansion, with built-in capacity for additional automation and flexibility to adapt to evolving fulfilment requirements. During the 2024 peak season with new automation in place, the facility significantly exceeded performance expectations, processing volumes well beyond initial projections.
For more details please read the lululemon Case Study.
