Coles Prepare to Unveil Third Advanced Automated Distribution Centre
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Coles Allocates $880 Million for Third High-Tech Automated Distribution Centre
Quick Overview
- Coles is putting $880 million into a new automated distribution centre in Truganina, Melbourne.
- The upcoming facility will leverage Witron’s sophisticated supply chain automation technology, akin to Coles’ current centres in NSW and Queensland.
- The Truganina centre will offer 15% more capacity than the first two, serving Victoria, Tasmania, South Australia, and Western Australia.
- This project is part of Coles’ overarching strategy to boost efficiency, safety, and sustainability within its supply chain.
- Coles’ transformation is aimed at enhancing product availability while lowering operational expenses.
Coles Enhances Automation Efforts with New Truganina Facility
Australian supermarket leader Coles Group is poised to further overhaul its supply chain, unveiling plans to invest $880 million in a third automated distribution centre (ADC) situated in Truganina, near Melbourne. This represents a crucial advancement in Coles’ persistent mission to upgrade its logistics framework with state-of-the-art technology, following the successful establishment of two comparable centres in Queensland and New South Wales earlier this year.
The new Truganina facility will capitalize on the cutting-edge automation technology pioneered by Witron, a global frontrunner in supply chain automation. The centre aims to optimize operations, enhance efficiency, and bolster safety across Coles’ supply network. It is anticipated to become a central hub for the retailer, servicing numerous states while boasting a 15% increase in capacity over its predecessors.
Witron Technology Central to Advancements
Coles has opted to maintain its collaboration with Witron, a German firm celebrated for its groundbreaking warehouse automation systems. Witron’s technology enables rapid sorting and picking of groceries, significantly minimizing manual effort and elevating accuracy. In the current Queensland and NSW facilities, this has facilitated quicker fulfilment times and improved stock management, particularly during busy periods.
The same Witron technology will be implemented in Truganina. It employs a mix of robotics and artificial intelligence to automate the picking function, moving away from traditional, labour-heavy approaches. This system is set to further revolutionize Coles’ logistics operations by decreasing human errors, reducing workplace injuries, and enhancing inventory management, ultimately ensuring improved product availability for consumers.
Increased Capacity and Extended Reach
A prominent attribute of the new Truganina facility is its 15% higher capacity in comparison to the two centres in Queensland and NSW. This increase in capacity is especially crucial since the Melbourne-site will cater to not only Victoria but also Tasmania. Additionally, it will connect with Coles’ current supply chain in South Australia and Western Australia, broadening its footprint across more regions.
Coles has indicated that the efficiencies derived from this heightened capacity will enhance product availability in stores, particularly as the Truganina centre will manage a larger volume of stock and orders. As a result, customers in Victoria, Tasmania, South Australia, and Western Australia can expect more reliable access to fresh produce and other merchandise.
An Integral Component of Coles’ Business Evolution
Coles Managing Director and CEO, Leah Weckert, stressed that this pivotal investment in automation is a vital aspect of the company’s continuing business evolution.
“The Victorian centre is anticipated to support all stores in Victoria and Tasmania while also synchronizing with Coles’ ongoing supply chain in South Australia and Western Australia,” Weckert mentioned. “This marks another significant stride in Coles’ business evolution as we persist in investing in technology to improve product availability for our customers and enhance efficiency across our supply chain.”
The Truganina facility is part of a wider initiative to render Coles’ supply chain more efficient, safer for personnel, and environmentally sustainable. By automating various processes, Coles aims to lower operational costs while also reducing its ecological footprint and refining service delivery across its retail framework.
Coles’ Dedication to Sustainability
In alignment with Coles’ “Together to Zero” sustainability initiative, the new automated distribution centre is projected to bolster the company’s endeavors to lessen its environmental footprint. The automation technology implemented in the facility is likely to lead to reduced energy consumption, lowered emissions, and diminished food waste due to enhanced stock oversight.
Sustainability has evolved into a core principle of Coles’ business strategy, with the company concentrating on decreasing greenhouse gas emissions, procuring renewable energy, and refining waste management throughout its operations. The introduction of the Truganina centre is anticipated to advance these objectives by enhancing supply chain efficiency and minimizing excess inventory, which frequently results in waste.
Conclusion
Coles is markedly advancing its adoption of modern automation technology with the introduction of its third automated distribution centre in Truganina, Melbourne. The $880 million investment is set to improve efficiency, safety, and sustainability within Coles’ supply chain. The new establishment, utilizing Witron’s innovative automation systems, will have 15% more capacity than the facilities in Queensland and NSW, servicing stores in Victoria, Tasmania, South Australia, and Western Australia. This initiative is integral to Coles’ broader strategy to refine operations, decrease costs, and enhance product availability for its consumers.
Q: What is the aim of Coles’ new distribution centre in Truganina?
A:
The Truganina distribution centre aims to automate Coles’ supply chain operations to improve efficiency, safety, and sustainability. It will serve stores in Victoria and Tasmania while connecting with Coles’ existing logistics framework in South Australia and Western Australia.
Q: What technology will the Truganina facility employ?
A:
The new facility will implement Witron’s advanced automation technology, incorporating robotics and artificial intelligence to automate grocery sorting and picking, thus reducing manual work and improving operational precision.
Q: How does the new facility compare to Coles’ other automated centres?
A:
The Truganina facility will possess 15% greater capacity than the two existing centres in Queensland and NSW. This enables it to manage a larger amount of stock and orders, servicing more areas across different states.
Q: How does this investment align with Coles’ broader business strategy?
A:
The investment in the new distribution centre is an element of Coles’ comprehensive business transformation strategy, focusing on using technology to enhance product availability, cut costs, and boost supply chain efficiency.
Q: What impact will the new centre have on sustainability at Coles?
A:
The automation included in the new Truganina facility is expected to aid Coles’ sustainability objectives by curbing energy use, minimizing waste through improved inventory management, and reducing greenhouse gas emissions.
Q: When is the Truganina distribution centre projected to be operational?
A:
While a specific opening date hasn’t been disclosed yet, the facility is part of Coles’ ongoing expansion plans, with the Queensland centre having commenced operations in April 2023 and the NSW centre in August 2023.
