Research Project

Bunnings Warehouse Supply Chain Network Design

Optimising operations to sustain “Everyday Low Prices” while preparing for a more agile and resilient future.

Overview

  • This case study explores how Bunnings Warehouse, Australia’s largest home improvement retailer, has designed its centralized supply chain network to support its Everyday Low Prices (EDLP) strategy. It analyses how the current structure enables cost control and nationwide coverage, while identifying opportunities for hybrid models, regional fulfilment hubs, and predictive data tools.

Problem Statement

  • Bunnings’ centralized model provides cost efficiency and consistency but exposes the business to vulnerabilities from disruptions and slower response times in remote areas.
  • Goal: Evaluate the supply chain design, highlight strengths and risks, and recommend improvements to enhance resilience, flexibility, and customer service.

Methodology

  • Approach:
    • Literature review of supply chain network design (lean, agile, collaborative, centralized, decentralized).
    • Mapping Bunnings’ current network and technology integration.
    • Comparative analysis against global best practices.
  • Data Sources:
    • Annual reports, industry research, sustainability statements.
    • Academic studies on SCND models.

Key Insights

  • Current Model: Centralized distribution with demand forecasting, ERP platforms, and strong supplier partnerships.
  • Strengths: Economies of scale, operational discipline, inventory control, alignment with EDLP.
  • Risks: Disruption vulnerability, slower rural delivery, limited localized assortments.
  • Opportunities: Hybrid network design, predictive analytics, sustainability integration.

Recommendations

  • Adopt Hybrid Supply Chain Model — Add regional fulfilment hubs to reduce lead times.
  • Enhance Supplier Collaboration — Joint planning, transparency, and innovation sharing.
  • Implement Sustainable Practices — Transport optimization, emission reduction, eco-friendly packaging.
  • Expand Omnichannel Capabilities — Improve Click & Collect, online inventory visibility, and last-mile delivery efficiency.

Deliverables

  • Literature review on SCND models.
  • Current network map & technology integration diagram.
  • Risk analysis & improvement plan.
  • Strategic recommendations report.

Project Impact

  • Potential to increase supply chain resilience.
  • Faster delivery in regional areas.
  • Stronger sustainability credentials and improved customer satisfaction.

View Full Report (PDF)