Operations Management in Coles Supermarket

OPERATIONS MANAGEMENT 1
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OPERATIONS MANAGEMENT 2
Organization description
Coles supermarkets in Australia is a consumer and retail services chain of supermarkets
owned by Westfarmers, their parent company, and their headquarters are in Melbourne. These
supermarkets provide Australian families with quality products at affordable prices. They sell
packaged food products which they source from Australian manufacturers, growers, and farmers.
And if they import products, they make sure that the products meet quality and safety standards
required before they sell them to their customers. The supermarket is also committed to form
lasting relationships with the farmers in Australia, and to make sure that the dream of a
sustainable future to Australian families is realized and to also support jobs in the food industry
boosting Australian economy in the process. They are also partnering with other companies to
provide food to the needy people in a program called the Coles Community Food Program.
Supply network flows
Product flow which is the movement products from the retailer, the supermarket, to the
customers, which also involves the supermarket dealing with customer needs. This flow is
generally downstream, from the point of origin to the point of consumption. Secondly, financial
flow where revenues flow from the customers who are the source of the funds in a chain of
supply, to the other party in the supply chain, the retailer. Integrated management of financial
flow is a crucial activity in the supply network flow of Coles Supermarket as it impacts the cash
flow and the profitability of the supermarket directly (Nagurney 2013, p. 668). Thirdly,
information flow: supply network flow involves a lot of diverse information like descriptions and
pricing, product data and current cash flow which requires a lot of coordination and

OPERATIONS MANAGEMENT 3
communication from the parties involved. Better and faster flow of information enhances the
effectiveness of the supply network which transforms performance greatly.
Key performance objectives
One of the most important objectives of the supermarket is cost-effectiveness. Supply
chain design is a crucial factor in the supermarket’s outbound logistics and their superior
inbound capability. They control the distribution of their products via sophisticated logistics and
procurement networks. Management and ownership of the network of distribution enable,
optimum distribution efficiency, superior product quality and enhances the delivery of goods that
is cost effective. Also, through its use of advanced technology, economies of scale and efficient
capabilities of the supply network, Coles Supermarket offers high quality products at affordable
prices ensuring the perception of the customer value exceeds all cost activities and to also create
a margin of profit.
Improving their products is another objective where high quality products mean higher
accuracy meaning applicable standards must be complied with in order to meet higher consumer
satisfaction (Markgraf 2018 p. 27. The importance of these objectives is that they help the
supermarket improve their productivity and increase financial returns. They can also be used as a
benchmark to gauge the success of the business as the more objectives met, the more successful
the business is.
Supply network design concepts
Value chain concept is developed as a competitive strategy and analysis tool. It is
consists of primary activities like outbound logistics, inbound logistics, operations, and sales and
marketing and support activities like technology development, infrastructure, management of