Coles has selected German automation specialist WITRON to develop two new automated ambient distribution centres in Queensland and New South Wales.
The two new distribution centres are part of a supply chain modernisation program that Coles says will improve availability for customers while lowering costs.
“The modernisation of our supply chain will provide a safer working environment for our team members, lower supply chain costs, enhance our overall business competitiveness and make life easier for our customers by having the right offer in the right location,” Steven Cain, CEO, Coles said.
Coles operates more than 2,500 retail outlets across Australia including supermarkets, liquor stores and fuel and convenience stores. More than 21 million customers per week shop in-store or online at Coles, generating sales of more than 39 billion Australian dollars over the 12 months to the end of June 2018.
The two distribution centres will respectively supply a full range of ambient grocery lines to more than 240 Coles supermarkets in New South Wales and more than 170 supermarkets in Queensland.
From each of the two approximately 70,000 square meter logistics locations, all stores are supplied with a full range of dry goods.
“We spent a lot of time working with Coles to make sure that the project was exactly what was needed, going right back to the most basic data before looking at logistics modules and technology, service and operator concepts, end-to-end supply chain intelligence, and finally to ways that the centres could make use of existing and future technology,” Helmut Prieschenk, CEO, WITRON said.
To manage the project, European-based WITRON has already registered an Australian subsidiary company, WITRON Australia Pty Ltd, which will be based in Sydney.
“We believe that by the end of 2023 when the projects are finished, these two new Coles distribution centres will be the most modern logistics infrastructure assets in Australia,” Walter Winkler, Owner and Founder, WITRON said.