Coles strengthens global supply chain visibility

Coles is powering forward its tech transformation with the implementation of new systems that will improve product availability and reduce costs.

The retail group will transition to renowned global supply chain management, GT Nexus, to streamline imports and allow real time visibility across its international supply chain.

“Availability is a key issue for customers and some popular items, such as light globes, herbs and spices and kitchen essentials like foil and garbage bags, cannot be sourced domestically so we need to look to international suppliers,” Coles Executive general manager operations and transformation Kevin Gunn said.

“By understanding where our stock is while in transit, we can better plan our stock movements to enhance availability for customers and reduce the time taken to move products into our stores, improving our use of working capital by reducing the time inventory spends in our supply chain.”

The system, which has been built by Infor, will also improve efficiencies and result in fewer truck movements, meaning reduced costs and lower carbon emissions.

In addition, new finance and procurement systems, SAP Ariba and S/4HANA, have been introduced as part of Coles’ smarter selling strategy to improve speed of processes and significantly reduce costs. The system will centralise purchasing of goods not for resale, allow for consolidation of suppliers and improve trading terms.

Coles Chief Financial Officer Leah Weckert said the introduction of the two systems is “fundamentally changing how Coles purchases goods not for resale right across the business”.

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