The Barbie effect: Mattel expands into mega shed

As part of a new 10-year agreement with its third-party logistics provider, DHL Supply Chain, Mattel’s warehouse operations have moved to a new 31,000-square-metre shed at Truganina, in Melbourne’s west, developed and owned by super fund investor ISPT.

This shed is 20 per cent bigger than the 25,690-square-metre warehouse DHL previously operated for Mattel under a five-year agreement that began in 2019.

Mattel chief executive and chairman Ynon Kreiz said the release of Barbie in July last year helped drive a 9 per cent rise in quarterly revenue to $US1.9 billion in the October quarter.

“Our results benefited from the success of the Barbie movie, which became a global cultural phenomenon and marked a key milestone for Mattel,” he said in October.

From the new warehouse on Melbourne Drive, DHL will receive Barbie and Ken dolls and Mattel’s extensive catalogue of other toy products then store, pick, pack and distribute them to customers across the country.

DHL supply chain ANZ CEO Steve Thompsett said: “We enjoy a great relationship with Mattel, and we’re thrilled to have entered this 10-year agreement and have their warehousing operations running from this new site.”

Mattel’s move into a much bigger and more sustainable warehouse mirrors a wider trend in the logistics and industrial sector where retailers and wholesalers are scaling up their supply chains to deliver goods more efficiently and more quickly to customers. This includes a rising number of online orders.

The new Truganina warehouse includes a 200-kilowatt peak power rooftop solar array, storage for rainwater collection, highly energy-efficient fans, and rooftop lighting which uses sunlight to illuminate the building.

Paul Faulkner, managing director for Mattel Asia Pacific, said its new agreement with DHL ensured it had the operational infrastructure and expertise in place to secure its future growth plans.

“In our mission to deliver innovative products and experiences … precision in our supply chain is vital. This expanded partnership with DHL ensures we can continue to improve the delivery of these experiences across the Australian marketplace,” he said.

The deal is a win too for the Mattel shed’s owner ISPT, which invests on behalf of Australian super funds and has about $21.5 billion of assets under management.

Like many other institutional investors, ISPT been reweighting its portfolio away from malls and offices, which have underperformed, and increased its investment in industrial assets.

The Truganina estate, where DHL will operate its new Mattel warehouse, features two prime-grade warehouses with a total lettable area of 58,190 square metres leased fully to the German logistics giant.