Coles supply chain vital to $33.7b in sales

A supply chain transformation has been credited as ‘vital' to a retail turnaround at Coles

Coles supply chain vital to $33.7b in sales
Coles supply chain vital to $33.7b in sales

By Sean Muir |
July 30, 2012

A supply chain transformation has been credited as ‘vital' to
Coles' turnaround, which includes a
6.1 percent leap in annual supermarket sales.

Released last week, Wesfarmer’s
sales results for the year to June reported full year sales at Coles' supermarket division had increased to $33.698 billion.

The results follow an announcement earlier this year that Coles would be engaged in a supply chain transformation
in 2012-2013.

Coles communications head Jon Church says work on Coles’ supply chain is reflected
in the company’s strong financial performance.

"Our supply chain continues to be a vital part of the Coles turnaround – we are striving to provide superior service levels across the entire business to help drive increased value for our customers," Church says.

Church says Coles is working closely with its third party suppliers to better understand supply chain effects and to flow inventory more effectively.

"We work very closely with our partners to increase service levels across our respective supply chains, improving inbound and outbound deliveries to our distribution centres and stores, resulting in greater product availability and real value for our customers," Church says.

"Our latest fourth quarter and full year 2012 sales results show Coles continues to outperform the industry, welcoming 500,000 extra customers in to our stores each week. The work across our entire business, including supply chain, contributes strongly to our ability to reinvest hundreds of millions of dollars to bring prices down for our customers."

Coles reported 4.6 per cent growth in food and liquor sales at $26.2 billion for the 2012.

Convenience sales at Coles Express stores, including petrol stations, rose 11.5 per cent to $7.5 billion.

Coles managing director Ian McLeod says the sales performance is pleasing.

"We have been particularly pleased with the continued strong volume growth," he says.

Coles opened 19 new supermarkets and closed 11 supermarkets during the financial year.

Earlier this year, McLeod announced Coles was also working on improving its DC processes and had reduced stock handling by five days from 2009 to 2012.

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