Coles Partners with WITRON on $880m Supply Chain Transformation
Coles Group Limited is accelerating its logistics transformation with a substantial $880 million investment in a new Automated Distribution Centre (ADC) in Truganina, Victoria. Developed with WITRON Australia, a leader in supply chain automation, this project is Coles’ third ADC and reinforces its commitment to technology-driven supply chain advancements. The Victoria facility, set to launch in fiscal year 2025, is expected to be 15% larger than Coles’ existing ADCs in New South Wales and Queensland, enabling it to process up to 4.6 million cartons weekly.
This venture is a key component of Coles’ strategy to enhance safety, efficiency, and sustainability across its distribution network, with TMX Transform overseeing end-to-end project management. Upon completion, the facility will integrate with Coles’ infrastructure in South Australia and Western Australia, increasing stock availability and streamlining logistics across critical regions. Coles’ Managing Director and CEO, Leah Weckert, highlighted the center’s pivotal role in scaling the company’s supply chain capabilities through advanced automation technology.
Coles’ journey in supply chain automation and partnership with WITRON
In recent years, Coles has made significant strides in modernizing its supply chain, initially launching two ADCs with WITRON in Queensland and New South Wales. These centers—among the largest automated distribution facilities in the Southern Hemisphere—have greatly boosted Coles’ distribution capacity and efficiency.
WITRON has been central to these advancements. The company’s sophisticated systems manage and transport high volumes of products with precision, meeting the complexities of modern retail distribution. The automation infrastructure at Coles’ ADCs includes high-bay automated storage and retrieval systems, which store tens of thousands of pallets, and order-picking machinery that assembles optimized pallets for distribution. This setup allows Coles to respond quickly to demand changes and improve delivery times across Australia’s eastern seaboard.
The new Victoria ADC will expand Coles’ network and strengthen its national supply chain. Leveraging WITRON’s technology, Coles anticipates greater throughput and efficiency. As the company invests further in logistics, its partnership with WITRON exemplifies a transformative approach that enhances scalability and ensures resilience amid changing consumer needs.
Features and capacity of the Victoria ADC
The new ADC in Truganina is Coles’ most advanced facility to date, with a 15% capacity increase over existing sites. Designed to process up to 4.6 million cartons weekly, the Victoria ADC enables Coles to handle higher product volumes, optimizing distribution across Victoria, Tasmania, and beyond.
Equipped with WITRON’s advanced automation systems, the center will fully automate picking, packing, and palletizing tasks. Its systems include high-bay storage and retrieval, allowing the ADC to manage vast stock volumes efficiently. WITRON’s Order Picking Machinery (OPM) system further reduces labor costs by handling intricate pallet builds and minimizing human error in inventory handling.
The ADC’s integration with Coles’ South Australian and Western Australian networks means stock can be strategically allocated across facilities, ensuring consistent availability in stores and preventing potential shortages. This level of connectivity strengthens Coles’ ability to serve customers efficiently during peak periods and mitigates disruptions.
Automation benefits for efficiency, sustainability, and customer satisfaction
Automation at the Victoria ADC supports Coles’ goals for safety, sustainability, and efficiency. By automating the most labor-intensive tasks, Coles reduces operational costs and improves workplace safety, as the need for heavy lifting and complex sorting is minimized. The automation also aligns with Coles’ environmental goals by reducing waste, energy consumption, and emissions. Fewer resources are required to manage stock, and the improved efficiency allows for streamlined inventory that minimizes excess.
For customers, these improvements translate to better product availability and an enhanced shopping experience. By managing high volumes across multiple states, Coles ensures popular items remain in stock without delays. CEO Leah Weckert noted that automation is key to Coles’ transformation, allowing the company to meet customer needs dynamically and cost-effectively.
TMX Transform’s role and project management insights
TMX Transform, Coles’ partner in automation, will manage the Victoria ADC project. With experience from Coles’ previous ADC builds, TMX brings expertise in end-to-end management, from facility design to WITRON system deployment. TMX’s role ensures the project aligns with Coles’ goals, delivering a fully operational facility suited to a dynamic retail market.
The construction and commissioning of an ADC of this scale is a multiyear project that requires careful planning and phased implementation. TMX will guide the execution of key milestones, overseeing complex logistics and coordinating technology installation. With an expected completion timeline of up to five years, TMX’s structured approach reduces risk and enables a predictable project schedule.
With TMX’s support, Coles is equipped to handle challenges associated with large-scale automation, balancing construction with ongoing distribution needs. By using data analytics and predictive modeling, TMX will also help Coles anticipate demand and optimize inventory management.
Coles’ investment in this project, together with TMX and WITRON, represents a strategy aimed at enhancing competitiveness within Australia’s retail sector.
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