Coles makes $1 billion move to boost product availability on supermarket shelves
The hi-tech distribution centre, as big as 10 MCGs, has been opened in Sydney's west and is expected to increase stock delivery by 20 per cent.
Empty shelves can be a frustrating sight for grocery shoppers but supermarket giant Coles claims to have made a leap to reduce the problem for millions of Aussies.
On Tuesday, Coles opened its second automated distribution centre (ADC) in Sydney's west. A massive billion-dollar warehouse at Kemps Creek which is about the size of nine MCG playing fields. It will cater to all of its NSW and ACT stores, centralising the supply chain and increasing stock availability by 20 per cent, the supermarket says — regardless of whether customers are shopping in a city store or out in the regions.
The majority of the work in the distribution centre will be carried out by robots, meaning efficiency and accuracy will be improved, according to the company. It's the second of its kind for Coles, with its first ADC established last year in Redbank, Queensland.
"Today marks a key milestone on our roadmap to enhance our supply chain and improve our operating efficiency, with a world-class facility that will deliver improved availability for our NSW customers," Coles CEO Leah Weckert said.
How will this change impact Coles customers?
By having robots do the majority of the work at the ADC, it's likely the right stock will get to the right places quicker, meaning there will be fewer instances where shoppers get to the supermarket and are met with empty shelves or can't find the items they want.
"Ultimately, when you think about automation, really robots are doing the work. Humans are loading the pallets of inventory into racks but robots are essentially picking and packing, and consolidating," consumer expert Gary Mortimer told Yahoo News. "One of the issues with human labor is humans make mistakes, so that's reduced."
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However, supply issues won't completely cease to exist now as there will still be times when "suppliers can't supply" as the country has recently seen in periods of extreme weather which disrupt producers and distribution.
But overall, the process of produce and products making their way to supermarket shelves will be sped up with the embrace of robotics-powered distribution centres, Mortimer argued.
"Once you remove the human element from it and shift it to robotics, essentially you can reduce time, increase efficiency and improve accuracy," he said.
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