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Coles Logistic System. This report will evaluate one of the leading Australian supermarkets Coles backgrounds, supply chain structures, quality management, warehousing management, transportations, inventory management, forecasting system and possible fut

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2012 Table of Contents Introduction 3 Background 3 The Take Over By Wesfarmers 4 The Change for Success 4 Brands and Products of Coles 5 Supply chain structure of Coles 5 Coles transforms its supply chain 7 Value Chain 8 The main marketing model of Coles 8 Business-to-Business (B2B) 8 Business-to-Customer (B2C) 9 Quality management 9 Quality control 10 Supplier control 10 Testing and Coles Standards 11 In-house quality control 11 Quality assurance 12 Quality improvement 13 Warehousing Management 14 Suggest Improvements for Coles warehousing management. 15 Transportation 16 Distribution 17 Forecasting System of Coles 18 Inventory Management System 20 Suggest improvement on forecasting and inventory system. 21 Conclusion 22 Reference 23 Introduction Nowadays there is one common activity within every household, which is grocery shopping. Every Australian or overseas visitors in Australia at some point in life or during their visits, they will step within an Australian supermarket to shop. Everyone knows how to do grocery shopping, but what they don't know was the behind the scene works for consumers to do their shopping. This report will evaluate one of the leading Australian supermarkets Coles backgrounds, supply chain structures, quality management, warehousing management, transportations, inventory management, forecasting system and possible future improvements. Background Coles supermarket is recognized to be one of the Australian icons while it is part of the leading food, liquor and convenience retailers. The first Coles store was founded by George James (G.J.) Coles in the early 1914 in Collingwood, Victoria and it was begin with Coles variety store. Then within less than half a decade, Coles have acquired numerous local supermarket chain stores its expansion have begins its success. Its rapid growth hasn't stop then, within another half a decade, Coles have acquired Myer, Target, Country Road, Red Rooster and opened up the first Kmart discount department stores. Nerveless, apart from Coles acquired various department stores yet it also acquired various liquor companies and renamed its companies as Coles Myer Ltd. ...read more.


In addition to Coles �House brand� requirements, suppliers must undertake external accreditation in either SQF 2000 or BRC Global Standard for food in May 2006. For example, Odeum Farms Company, In order to ensure that standards are upheld or exceeded, Odeum has developed and implemented a number of internationally recognized food safety and quality assurance systems. And the assurance can prove the Odeum has the qualification to supply Coles supermarket, and all its product can reach the standards which is given by Coles, meeting international food security requirement. (Source from ODEUM PRODUCE PTY.2011.) Furthermore, Coles also give its quality Commitment to public in order to support its branding strategy, and building its reputation among customers. Coles promise a money back guarantee to protect customer's benefit and as well its commitment covering Coles' food from nutrition to packing with high quality and environmental friendly. Therefore, quality assurance establishes the standard for both supplier and Coles' behaviour relating to a paper work, quality management can be visually put into practiced on the basement of certification and contract. Quality improvement Coles did pretty good in Quality improvement, such as customer feedback, staff training, and even in packaging and many little details, for example, in 2008 an Allergen Management and Labelling program presented by Cole's policy& legislation manger McSkimming, in this program Coles push all labelling into standardization, some labelling is changing for adopting AFGC Allergen Guide. (Source : McSkimming, 2008) Warehousing Management Warehousing serves as a vital cog in the logistic system. A key reason for warehousing is because patterns of production and consumption do not coincide (Murphy & Wood, 2011, p. 196). As the company will be servicing all of Australia, warehousing management is important to Coles Limited. With the creation of national distribution centre of Coles, which equipped the completely automated-contro small part storage, such as the pick-by-light order picks from the mini-load and order picking to the goods-to-person principle from the Schaefer Carousel System. ...read more.


As a result of that, Coles have reach up to 9 consecutive quarters in industry out-performance. It have meant a lot to Coles and so long as Coles kept up with its great work, it will get them a long way. Reference Alan, 2004, Australia chain enterprise, business forum, viewed 20 April 2012, <http://www.linkshop.com.cn/club/dispbbs.aspx?rootid=29414> Coles Official Supermarket 2012, viewed 23 April 2012, <http://www.coles.com.au/Shop-Online.aspx> Coles supplier portal, 'supplier audit requirements', viewed 1st may 2012 https://www.supplierportal.coles.com.au/csp/wps/portal/web/QualityColesBrands/SupplierAuditRequirements Colson, H 2012, 'a interview with Coles manager Harley Colson'. Costalogistics, 2010, COLES AWARD - Most improved site for Safety, viewed 29 April 2012, < http://www.costalogistics.com.au/news--media/latest-news/coles-award---most-improved-site-for-safety.aspx> Durkan, J 2011, 'Quality food Costs less at Coles', Australian Meat Industry Council Conference, 25th Aug 2011, pp. 5-6. Hill, B2011, Coles online-Behind the scenes, Coles.com, viewed 28 April2012, <http://blog.colesonline.com.au/2011/10/01/coles-online-behind-the-scenes/> Korporaal, G, 2008, Search and Rescue, viewed on 31st April, 2012, <http://www.theaustralian.com.au/news/features/search-and-rescue/story-e6frgabx-1111118285222 > McSkimming, N 2008, 'Coles Supermarkets Customer Focused Allergen Management & Labelling', viewed 28th April 2012, <http://www.allergenbureau.net/downloads/resources/adelaide-conference-2008/Allergen-labelling-and-management-Neil-McSkimmin-Coles.pdf> Murphy Jnr, P.R, & Wood, D.F. 2011, Contemporary Logistics, 10th ed, New Jersey: Pearson. Neill, M 2012, Supermarket giants attacked for intimidation, Australian BroadcastingCorporation, viewed 4th April2012, <http://www.abc.net.au/lateline/content/2012/s3460798.htm> Paula, J 2010, What is B2B (Business2Business or Business-to-Business), SearchCIO, viewed 23 April 2012, <http://searchcio.techtarget.com/definition/B2B> Rescher,N,1998, Predicting the future: An introduction to the theory of forecasting. Republished by State University of New York Press Rowe, D 2012, Mobile dimensioning system for Coles distribution centre in QLD, viewed 18th April 2012, <http://www.scalecomponents.com.au/index.php/most-recent-cubing-articles/91-mobile-dimensioning-system-for-coles-distribution-centre-in-qld> Sahu,A,P 2010, forecasting encyclopedia of business, 2nd ed , viewed on 15th April 2012, <http://www.referenceforbusiness.com/encyclopedia/Fa-For/Forecasting.html> Sandeep, K and Ashish Kumar, T 2007, Creating Supply Chain Flexibility in the Flattening World, Infosys, viewed 18 April 2012, <http://www.infosys.com/industries/high-technology/white-papers/Documents/creating-supplychain-flexibility-setlabs.pdf> Schaefer Systems International, 2009, Schaefer Systems International deploy warehouse management system for Coles distribution centres, viewed 12 April 2012, < http://www.ferret.com.au/c/Schaefer-Systems-International/Schaefer-Systems-International-deploy-warehouse-management-system-for-Coles-Group-distribution-centres-n833975> Scott, A, J 2001, Principles of forecasting: a handbook for researchers and practitioners, Published by Kluwer Academic Publishers. SearchCIO 2000, Value Chain, SearchCIO, viewed 21 April 2012, <http://searchcio.techtarget.com/definition/value-chain> Weis, S,A 2007, RFID (Radio Frequency Identification): Principles and Applications, MIT CSAIL, viewed on 20th April 2012, <http://citeseerx.ist.psu.edu/viewdoc/summary?doi=> ?? ?? ?? ?? Page 5 ...read more.

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