In the world of global dairy exports, few names carry as much weight as Fonterra.
With a complex, nationwide supply chain and the responsibility of delivering dairy products to over 140 countries, operational excellence isn’t just preferred—it’s essential. Since 2009, Fonterra has been partnering with Linde Material Handling to ensure that its logistical backbone remains strong, efficient, and increasingly sustainable.
A Partnership Built on Performance and Innovation
The relationship between Fonterra and Linde, supported by LDX, is one of collaboration, innovation, and continuous improvement. With over 600 material handling machines operating across 27 distribution centres, this long-term partnership has evolved into a model for how enterprise-level logistics can be managed with both precision and care.
A significant milestone was reached in October 2024 when LDX was awarded the exclusive contract to service and maintain Fonterra’s entire material handling fleet. This agreement formalised what had already been a high-functioning relationship and positioned LDX as a crucial operational partner in Fonterra’s supply chain strategy.
Challenges:
-
Managing a vast and complex supply chain with 27 distribution centres and over 600 material handling machines.
-
Transitioning to more sustainable and energy-efficient operations.
-
Maintaining high safety and hygiene standards in food production environments.
Solutions Implemented:
-
Adoption of Advanced Equipment:
-
Integration of Linde's lithium-ion (Li-ION) forklifts, enhancing energy efficiency and reducing emissions.
-
Deployment of Automated Guided Vehicles (AGVs) at the Darfield site, streamlining cream cheese production and minimizing human contact in hygiene-sensitive areas.
-
-
Energy Optimization:
-
Implementation of the Linde:Connect Charger system at the Clandeboye site, optimizing energy usage and help balance load and grid demand, enabling Fonterra to avoid costly infrastructure upgrades while moving closer to its sustainability goals.
-
-
Exclusive Service and Maintenance Agreement:
-
In October 2024, LDX, a subsidiary of TDX and the exclusive New Zealand dealer for Linde, was awarded an exclusive contract to service and maintain Fonterra's material handling fleet, ensuring consistent performance and support.
-
Results:
-
Achieved a fleet where 60% of the machines are now electric, aligning with Fonterra's goal to reduce emissions by 50.4% by 2030.
-
AGVs at the Darfield site have logged over 20,000 hours of operation, significantly improving productivity and safety.
-
Enhanced operational efficiency and reduced environmental impact across Fonterra's supply chain.
People Behind the Partnership
At the heart of this success are the people driving it. Richard Tyson, General Manager of NZ Distribution Centres at Fonterra, credits the performance and reliability of Linde’s equipment for its success:
“Linde has been awesome for us. Their reliability, performance, the ergonomics, and their focus on safety are unmatched. It’s a no-brainer for us.”
Matt Smith, Plant Manager at Darfield Cream Cheese, adds that automation has transformed their operation:
“The AGVs are great from a productivity and safety point of view. They've saved us countless hours, and I know our products are being handled safely every day.”
And for Bruce Hansen, the partnership’s true value lies in trust and shared commitment:
“There’s been a lot of support and collaboration between Fonterra, Linde and LDX to get the right outcomes for the business and keep the uptime of our machines as high as possible. The LDX team are fantastic—very open and honest—and we work through challenges together, which brings solutions that are key to our partnership. The agreement we have is extremely important. Having the flow of product from production through to export is a key part of the business, so machine reliability and uptime are critical.”
A Model for the Future
Fonterra, Linde & TDX's collaboration is a powerful example of how technology, trust, and teamwork can come together to create lasting operational success. As the dairy giant continues to innovate, LDX and Linde remain key players in helping it deliver premium New Zealand dairy to the world.
Their partnership proves that in the fast-paced world of logistics, having the right people—and the right machines—makes all the difference.
We’re committed to supporting your business with tailored material handling solutions. Feel free to reach out to us with any questions or feedback.
