Leading Australian retailer Coles has opened the country’s first Automated Distribution Centre (ADC) with the help of global leading Witron technology.
Following Coles’ biggest investment in technology, the ADC is designed to not only create safer and more sustainable outcomes for team members and suppliers but also provide better on-shelf availability for customers.
When operating at full capacity, the site can process up to four million cases per week, the equivalent of 32 million units sold in stores. Over the course of a year, this is around 1.6 billion sales units.
Coles Chief Executive Officer Steven Cain said the opening of the ADC is one of the most significant moments since Coles was founded in 1914.
“Modernising our operations is how we improve efficiency and availability in our stores and deliver higher service levels for our customers, team members and suppliers,” Mr Cain said.
“Our new ADCs can process twice the number of cases and hold twice the number of pallets compared to one of our current DCs. The ADCs enable us to half our current total footprint, leading to a more productive and sustainable business model.”
According to Mr Cain, over 90 per cent of the cases processed in these automated distribution centres will be processed fully by automation or ergonomically, a step-change for the safety of the company’s team as it eliminates almost 18 million kilograms of manual handling in the supply chain each week.
The state-of-the-art facility in Redbank is located 30 kilometres south-west of Brisbane and will service 219 Coles supermarkets in Queensland and Northern New South Wales, as far north as Port Douglas and as far south as Laurieton in NSW.
Coles Group Chairman James Graham AM said he would like to thank all those involved for their dedication to this very important project.
“I’m proud of our team, partners and suppliers who’ve worked together for over five years to create this state-of-the-art facility,” he said.
“Over 3,000 people came together, contributing more than 2.5 million work hours to plan and design the facility, construct the building and install and commission the automation.”
Prime Minister Anthony Albanese MP said this world-leading technology will help advance supermarket supply chains.
“This technology is not only a first for Australia, but also a win for the state of Queensland. As we’ve seen during the pandemic and natural disasters, resilient supply chains are essential when it comes to feeding our nation and providing Australians with essential supplies,” he said.
“Coles is one of the biggest employers in this country and its team was pivotal in ensuring food security during challenging times. A facility like this one in Redbank shows how retailers and manufacturers can look to the future to improve the productivity, safety and sustainability of their operations for all Australians.”
Queensland Premier Annastacia Palaszczuk welcomed the significant investment in the strong Queensland economy.
“The decision to invest in and build this Australian-first facility here in Queensland is a testament to the strength of the Queensland economy,” she said.
“Coles’ investment will drive productivity growth in Queensland while ensuring food security to one of the fastest growing regions in the country.”
WITRON Logistik + Informatik CEO Helmut Prieschenk said Coles has partnered with the market leader in warehouse automation systems for major food retailers globally.
“We have been engaged to build 93 automated distribution centres in 13 different countries, with the latest for Coles being the largest ambient system Witron has ever built,” Mr Prieschenk said.
“Witron will work with Coles to provide a technology-focused, multi-disciplinary team for day-to-day operations, technical expertise and maintenance support.”
Witron Founder Walter Winkler is extremely proud, that together with Coles, a powerful logistics platform has been created.
“This Automated Distribution Centre is for the benefit of the entire supply chain and will help the Australian grocery market by introducing the very best technology, and last but not least it creates great value to the Coles business,” Mr Winkler said.