I used to work up at NorWest
It could be that they are not putting as much stock through that particular DC. They have been tuning their logistics model for a while and moving supply boundries away from some DC's to others as it is more cost effective (and more flexible).
As for overtime, they have been trying really hard to NOT pay overtime and get their logistics right. The fact they are no longer paying overtime is normally a plus.
However it would all come down to out of stocks in the stores, have they gone up and sales are down? If they have then there is a problem, if not then it is about tuning the logistics model.
Woolworths Turnaround?, page-73
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