Austin Group
Building supply chain capability from the ground up
How ThreeSixty helped a premium fashion retailer build a thriving in-house distribution centre.
Austin Group has successfully transitioned its warehousing operations, from outsourcing logistics to developing a fully in-house distribution centre. The project has transformed the fashion retailer’s fulfillment capabilities, with the new Melbourne facility doubling daily processing capacity while achieving 99.8% on-time delivery performance. ThreeSixty guided Austin Group through every phase of building their distribution operations from scratch, managing comprehensive planning, disciplined project management and working collaboratively to reach the operational go-live on schedule.
Austin Group operates three premium retail brands – Gazman, Cable, and Perri Cutten – targeting customers over 30 across physical stores and e-commerce channels. Following several years of outsourced logistics operations, the business recognised that they needed to better invest in their supply chain infrastructure to improve current operations, and support future growth.
“Now the facility basically runs itself – we’re processing significantly higher volumes with fewer errors, and our stores are seeing the benefit through faster, more reliable deliveries.”
Kevin Buhagiar, DC Manager, Austin Group
“When you’re a retailer with stores and online, supply chain is the backbone of how you deliver to your customers. The question we always ask: is supply chain a strategic imperative in your business? For Austin Group, the answer was clearly yes”
Arthur Dardoumbas, Executive Director, ThreeSixty
The evaluation
Austin Group engaged ThreeSixty in 2022, to carry out comprehensive business modelling and direct its transition strategy. Rather than assume in-house operations were the best way forward, ThreeSixty developed parallel potential solutions: detailed in-house scenarios including both manual and automated options, alongside a competitive evaluation of capable tier-one 3PL providers.
The evaluation process extended over five to six months. ThreeSixty gathered operational data, analysed throughput requirements, and developed detailed roadmaps for people capability, property requirements, capital investment, and technology systems. The team modelled complete P&L scenarios for each option, providing Austin Group with clear commercial comparisons.
After extensive review and modelling of all options, ThreeSixty advised against full automation. With Austin Group building an entirely new team and implementing new systems simultaneously, introducing complex automation would create unnecessary risk. In steering Austin Group away from full automation, the retailer could ensure operational stability and team capability and avoid technical complexity.
“From day one, ThreeSixty gave us confidence through knowledge of the industry, both conceptually and practically. They prepared a comprehensive seven-year model and guided us on what data they needed to make it reliable. We put quite a few of our team into critically reviewing that document, and we believed in it. There was real credibility in the model they prepared, which led us to our decision-making about whether to go with a 3PL again or bring operations in-house.”
Simon Murray, Austin Group Chief Operating Officer
“The right answer for Austin Group, even though the case for automation was financially viable and they were prepared to proceed with it, the direction was to not automate yet. When you’re transitioning from outsourced operations with limited internal capability, you need to build your team first. Every other consultant leads with automation, but we provided guidance to ensure they didn’t overstretch and set themselves up to fail.”
Arthur Dardoumbas
The benefits of in-house capability
Because Austin Group were seeking more flexibility and agility in their operations, the decision was made to develop in-house supply chain capabilities. ThreeSixty worked in collaboration with CBRE on property selection and contract negotiation. To execute the operation, ThreeSixty managed everything from major procurement items, installation of capital equipment covering 350 line items from racking to custom pick trolleys, and a new Warehouse Management System.
When faced with building delays, ThreeSixty rescheduled containers arriving with racking, adjusted contractors and network infrastructure installation timelines, and re-sequenced the entire fit-out while maintaining the project schedule. The team’s ability to adapt quickly and coordinate multiple contractors prevented costly delays.
The transformation included developing stock slotting strategies, seasonal pick face changeover processes, and detailed work instructions. ThreeSixty developed custom solutions including engineered pick trolleys with step platforms for shorter-stature workers, warehouse numbering conventions, travel pick sequences for the WMS, and comprehensive signage design. Working with minimal visibility into existing operations, ThreeSixty oversaw careful planning around labelling, location mapping, and inventory verification, working with Austin Group to develop detailed transition protocols.
“The decision to bring operations in-house was about gaining more control and flexibility. ThreeSixty helped us build that capability from the ground up. “ThreeSixty’s team embedded themselves in our business. Their responsiveness and expertise were phenomenal – we could ask questions and get the results and solutions for things we needed to understand. They were in boots and vests on site, not just behind a desk.”
Kevin Buhagiar, DC Manager, Austin Group
The results: A stable, scalable platform
The transformation delivered immediate operational improvements while establishing a platform for future growth. Processing capacity increased significantly and doubled the daily processing capacity with significantly fewer errors. The operation now achieves 99.8% delivery in full, on time (DIFOT) performance, running two overlapping crews from 6am to 5pm with early carrier pickups enabling next-morning store deliveries.
This improved performance has transformed store operations. Retail locations now receive stock more reliably and quickly, freeing up floor space while maintaining stock availability and improving overall customer experience. The facility’s design includes substantial capacity headroom, with operations running well below the 78% capacity threshold where efficiency usually degrades. This has proven valuable as Austin Group expands online operations, with additional women’s brands made live in early 2025 and Gazman’s online expansion.
One year into operations, the facility runs with minimal supervisor oversight. The business has transitioned to a stable, scalable platform that supports their premium retail positioning.
“What amazed both the owner, Will Austin, and myself was that it just worked from day one. We went from a brownfield site to a ramped up, fully operational facility in no time. We’re now 18 months into operations and trading favourably to the seven-year model ThreeSixty prepared – both from the capital build perspective and from an OPEX perspective post-build. As a CFO, that’s a great outcome – a credible model with upside built in.”
Simon Murray, Austin Group Chief Operating Officer
