Coles Supermarket - Capacity Management - Case Study Example

Running Head: Report Analysis on Coles supermarket Name Instructor’s name Institution of study Date The physical flow of goods The physical flow of goods by the Coles Supermarket uses a method known as Coles Collect; this is the method whereby Coles is the transport provider where it collects all the products designated for the Coles Distribution Centers. This is obviously made using carriers that are arranged by Coles themselves. This arrangement by the name of Coles Collect is an agreement that has been put in place between the Coles suppliers and the Coles Supermarket[Col12]. Coles in essence manages its inbound freight and therefore is able to manage the entire supply chain actively from its suppliers to the Cole’s Distribution Centers as well as the vice versa which is from the Distribution centers to the Coles Supermarket Shelves. The responsibility of transporting the freight under the Coles Collect into the Distribution Centers of Coles therefore shifts from the supplier to Coles. This means that a supplier is not required whatsoever to foresee the transport logistics of having any freight delivered into the Distribution Centers of the Coles Supermarket[Col12]. The work of the supplier in this process remains that of packaging, labeling, documentation, labeling, data integrity, and order fill. The supplier should conform to the processes and procedures that are laid down by the Coles Supermarket Supply chain. Their supply system has been able to highlight the preservation, protective, a brand communication, logistical and environmental functions. It cannot be forgotten that they have been able to bring in design and technology and used it for a competitive advantage. It meets the needs of the people as well as the wants of the end users through their packaging innovation and design and also opening distribution channels that make the system work more efficiently[Ric11]. The Coles Collect has an aim which is that of ensuring that through the better planning, capacity management, vehicle utilization at the Distribution centers as well as the consistency of this inbound service levels the end to end cost of the supply chain; the costs are minimized and ensures that the supplier who uses Coles Collect has a competitive advantage in trying to put the products on the Coles Supermarket shelf[Col12]. There exists an organizational and management structure that controls the supply chain. This is usually carried out by the Inbound Freight System (IFS) which is a centralized inbound customer care center. This customer care center is responsible for the allocation of the mutually agrees inbound delivery timeslots into the Coles Supermarket ambient, liquor, and also the frozen/chilled distribution Centers nationally. Before the deliveries are made, a supplier is required to contact the Inbound Freight System so as to obtain a booking[Col12]. It is required that one completes information on; Distribution Centre Number and Name Transport Company Type of Vehicle Supplier Name and Supplier Number Order Number Pallet Quantities After this is completed, IFS will make a request that the orders be delivered on the due date. This means that the suppliers or the transport providers should do everything possible to ensure that the stipulated stock is made available to be able to meet the timeslot d on the date of due delivery. Besides the control, the Coles collect team acknowledges that by closely working with its suppliers, Cole’s strategic carrier partner, providers of the logistics service[Col12], Coles Distribution Centers, and the Coles merchandise departments they can be able to improve the supply chain performance not forgetting that they will be able to address any opportunities that may arise in areas such as: Responsibility management chain Greenhouse gas emissions and Environmental impact Optimize order frequency, profiles, and inventory Optimal vehicle type That throughout the entire supply chain there is cost to serve optimization Nevertheless, the Coles Collect seeks commitment with all the supply chain partners who are in this line so as to offer a great service and cost improvements. Current Performance of Supply chain Since December 2010, the results released showed that the continuous improvements that were made to enhance the efficiency in the supply chain helped by a great deal the boasting of earnings. In this period, the earnings went up by 18.3% year in year out, while from this efficiency improvement, the food and liquor sales showed a 6.3% increase in the same period. The customer numbers were notably increase from this period onwards and customer service improvements made were notably cited to be the main drives to this[RIC12]. This is a validation that the products quality had improved and that there is a real value in-store experience that was resonating well with the customers. With the believe that price is a key driver to the way the customers behave in Australia, Coles seeks to ensure that they remain competitive by offering good value that is friendly to its customers. It also delivers an everyday value in its supermarkets and across the range of products they sell. They have on the other hand developed a significant investment of new house brand products that are aimed at giving customers product quality and at lowers prices and they have this far managed to achieve that. In a recent grocery price survey dubbed “Best Value Shopping” and that was conducted by Choice consumer group, Coles was found to be the cheapest grocery nationally for the Choice’s groceries basket; this was in over the 23 regions that the survey was conducted in[sup11]. Coles Supermarket’s relative performance against outside organizations In Australia, Coles forms one of the largest supermarket chains and with people realizing the need to have fresh foods on their purchase lists as well as other consumer products the grocery stores demand have been transformed to supermarkets. For this reason, the competition to remain relevant to the customers and also to be at the top of the rest remains stiff. Coles has procedures and policies that are followed strategically as compared to its competitors. This makes Cole one of the most successful supermarkets in Australia; this is in terms of customer satisfaction, innovation in the product strategy, customer retention, their marketing strategy, not overlooking their financial capabilities as well as their strong working culture which has in it leadership values[sup11]. This entire combination makes Coles a key player in this Industry in Australia. Moreover, the use of online marketing strategies places Coles in an extension position of generating revenue with them having a presence online. With the fact that online services are today the most convenient means of conducting shopping services online, affordable marketing, motar shops, and outside bricks, their strategy to implement an IT platform in their business processes has created an avenue for key success in financial revenue as well as customer satisfaction. Besides this, the supply chains as well as other operational activities are effectively managed through the internet[Ric11]. This technological innovation helps Coles make an extension in minimizing the operational costs and revenue increment. The last couple of years, Coles have recorded an increase in the revenue and sales. They cited the technological insight as one of the key factors that led to the boast in the company’s revenues, sales, and profits[RIC12]. Coming from a staggering position, Cole’s revenue figures has double in the last couple of years proving that the company still has great opportunity in this industry in Australia. With growing confidence that amidst the five year turn around program, there are great signs of the program generating momentum and traction[Ste09]. Comparing it with its high performing competitor the Woolworths, the Coles Supermarket performance is benchmarked against the history that it has. Real sense that the Coles team is very much on track is alive which is providing the market with reassurance that this business at Coles is fixable[Ste09]. A notable performance of the Coles supermarket against Woolworths is in this month’s sales performance on flat flood and liquor where Coles is poised to outperform the Woolworth. This will be the 11th consecutive quarter for it to report its like-to-like for sales made. Bibliography Col12: , (Coles, 2012), Ric11: , (Coles, 2011), RIC12: , (GLUYAS, 2012), sup11: , (supply chain analysis, 2011), Ste09: , (Bartholomeusz, 2009), Read More