Reinventing Kmart Logistics
Redesigning the existing Kmart Collapsible Pallet System
The Kmart Modular Collapsible Pallet-Bin System is a commercial logistics product developed through a partnership between JVG Product Design and LODI Enabled, a Brisbane-based logistics technology company. The project commenced in early 2024 as part of a formal, multi-phase engagement with Kmart Australia.
The concept was conceived to address a real and documented operational challenge within Kmart's supply chain — the failure of existing bin and pallet systems (including KC1s and Chep bin systems) to perform reliably when stacked in three-column configurations, as required at key Kmart distribution centres. The solution is a fully modular, collapsible pallet-bin system designed to be handled by both human operators and automated guided vehicles (AGVs) and Automated Storage and Retrieval Systems (ASRS).
The system is comprised of three primary components:
Collapsible Pallet Base — a heavy-duty pallet with a collapsible wall system featuring sliding internal side gates that fold down flush into the base for compact storage. When collapsed, multiple units stack neatly to minimise footprint. When assembled, the system can be stacked three units high in column configurations. The base includes drainage holes for fire safety compliance, a textured top surface for grip, a product licence plate zone for traceability, and AGV-compatible geometry on the underside.
Decanting Crates — modular crates designed to nest and lock within the collapsible pallet system. Multiple crates can stack and interlock within the bin cavity, with a dedicated sectional locking mechanism. Transparent variants were also explored for operational visibility of contents.
Nestable Pallets — a standalone pallet variant that can be stacked when not in use, offering additional flexibility in the product ecosystem.
JVG Product Design's scope across Phase 1 included full 3D CAD modelling, iterative design development via Loom video walkthroughs, a complete set of photorealistic renders (including animated videos demonstrating the collapsing wall mechanism), and scaled 3D printed physical miniatures of the system for presentation to the Kmart stakeholder team.