Image Wesfarmers plan to demerge coles0: Wesfarmers made it clear the performance potential of the huge supermarket chain was not good enough for them to continue owning it. In Coles revenue fell and so did profits.
Introduction In present business world, supply chain management SCM is considered as one of the most essential elements of running business competently in the global market.
It is crucial for satisfying customers and making the business profitable. Effective SCM is crucial for rapid Coles value chain of multinational organisations. Without an efficient SCM, companies may face issues in sourcing, environmental concerns that can affect the bottom line and business strategy significantly.
Therefore, considering SCM as the most important corporate discipline, the present study focuses on logistic management or SCM of Coles group ltd. The company is Australian based and operates several retail stores. The company ranks second among the retail chains.
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The company has an effective supply chain management that helped them to improve their customer service considerably across the world. Further, this study analyses the link between the business activities of Coles and LB theories. In addition, it also evaluates the sustainability of the value chain of the company.
Overview of the Coles group Ltd Coles group ltd. This company is also offering its product through online sites. The company was acquired by the western Australian public company known as wesfarmers but the ownership was transferred to the Coles group in the year The company opened its first variety store in Melbourne in The company head office is constructed in Melbourne, which consists of multi building and large-scale multi level facility.
The company is national service retailer of supermarket owning more than stores and supermarkets throughout Australia. The Coles group has a rich history in Australia with its first retail store in the Melbourne since The aim of the company is to provide the people of Australia the shop which they can trust by delivering products and services.
The company has aboutstaff and numerous outlets nationally. The Coles group also operates online supermarket by enabling the customers to login from anywhere and anytime in order to order grocery products and services.
The company delivers its products by having good control over the supply chain management in temperature-controlled vans in the particular time period across the Australia Coles. According to Olson and Wu,p. The retail revolution needs a supply chain alteration that can identify the contemporary variable and unpredictable demands of customers and the shortage of scalability of old systems.
The company has succeeded in getting fame with its improved supply chain management. As stated by Stank et al. The company focused on changing their approach regarding SCM and adopted the required changes and controls for making their supply chain effective.
The effectiveness of this development can be accessed through their profitability. The company has developed an organised retail supply chain that has facilitated them to supply efficiently to their customers to gain customer satisfaction. The company maintains online supply chain portal for SCM that helps in supporting efficient working relationship between the company and the suppliers.
This helps in providing better communication and coordination in order to drive efficiency throughout the supply chain.
The portal is providing the suppliers with the information so that they can assess the performance on a daily basis in order to identify the opportunities for improvements in the value chain.
Logistic or supply chain management from the source to the customer Coles group ltd. The company has set up their supply chain management system in a manner to ensure that all their supplier centres can fulfill the requirement of all their retail supermarkets.
The company managed to focus on the core competent environment by becoming much more flexible in the supply chain management. The company eliminated the levels of middle management and empowered their employees so that they can provide effective services to their customers in their own ways Carter and Liane Easton,p.
The company ensures to maintain the supply chain in order to improve the collaboration and trust between the chain partners ultimately improving the visibility of its inventory and the supply chain movement. Coles group ensures that it relies on efficient supply chain networks to maintain its position in the competitive retail chain market and in the economy network.
As opined by Yi et al.
The company tries to work closely with its suppliers in order to take appropriate measures regarding the regular improvement to have discussions with the chain management about the threats and opportunities and to assess the areas where the necessary improvements are required.
Coles group maintains a very good supply chain management by delivering goods and services to the customer in a specified time. The company ensures that the customers are provided with quality product and services without compromising any factor responsible in the supply chain management.
The company operates its logistic operations by putting in operation two centres for receiving, dispatch and processing of the goods and merchandise and some other grocery items for supermarkets.Coles has reported sales growth of %, following a challenging year with supply chain disruptions.
Supply chain disruption Coles' overall performance was impacted by ongoing price cuts that resulted in price deflation for the year of %, coupled with cost inflation and supply chain disruption caused by .
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Supply Chain (and if you missed them, issue #7,#6, #5, #4,#3,#2 and #1 are available here) Quick Links Contractor Induction. Quality - All Suppliers.
Quality - All Coles Brand Suppliers. Password Issues. Merchandise Team Contact List. National Product Catalogue. Coles Product Catalogue. - Quality, service & value. The beginning of the 's was marred by the savage social impacts of the Great Depression. Despite tough economic times, Coles did not step down from its commitment, first made in , to donate a large share of profits to charities including hospitals, nursing homes and relief funds for the unemployed.
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