Globalizing the Supply Chain: Coles Supermarket Report and Analysis

This report offers an in-depth analysis of the globalization of Coles Supermarket's supply chain. It begins with an executive summary and an introduction, highlighting Coles' expansion and its strategic shift towards a global perspective in supply chain management. The report outlines specific strategies implemented by Coles, including the establishment of a new demand center for excellence, the implementation of new supply chain operations, and the integration of demand planners. A critical evaluation of these strategies is provided, discussing both the benefits, such as expanded sourcing opportunities, and the challenges, including political instability, increased transaction costs, and limited trained personnel. The report concludes with a summary of the key findings and an assessment of the impact of globalizing the supply chain on Coles Supermarket. This assignment is available on Desklib, a platform providing AI-based study tools for students, including past papers and solved assignments.

Running head: COMPETITIVE STRATEGY
Globalizing the Supply Chain
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1COMPETITIVE STRATEGY
Executive Summary:
The report gives an overview on globalizing the supply chain of the Coles Supermarket of
Australia. There is discussion on the strategies adopted by Coles Supermarket in globalising the
supply chain. The report also put forward a critical evaluation of theory of globalizing supply
chain by putting across arguments for and against the theory.

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Table of Contents
Introduction......................................................................................................................................3
Strategies for Globalization the Supply Chain of Coles Supermarket............................................3
Critical Evaluation of the Approach................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
The report is a discussion on the globalisation of supply chain of Coles Supermarket.
Coles is an Australian supermarket chain that opened its first store in the year 1914 on the Smith
Street of Melbourne (Coles.com.au 2018). However, in the present day scenario, top
management of Coles Supermarket have realized that better management of the supply chains by
adopting a global perspective in terms of finance, purchasing, logistics and transportation
management, management of materials, information technology and quality can largely enable
the organization to not only implement initiatives strategically but also help in achieving overall
goals.
Strategies for Globalization the Supply Chain of Coles Supermarket
Cole’s supermarket now looks forward in building solid progress of its existing supply
chain ensuring its modification on a global perspective. The supermarket chain of Australia took
baby steps in simplifying the ways of working by ensuring more efficiency, responding faster to
the customers and ensuring delivery of better outcomes (Burch, Dixon and Lawrence 2013). The
company however looks forward to replicate the benefits on a global scale through globalizing
its existing supply chain. Although the changes will help in introducing, newer reporting lines
and roles but they will also allow a single supply chain team on focusing a greater availability,
freshness and value for the customers.
The strategy adopted by Coles in globalisation of supply chain includes:
1. Implementing a new demand centre for excellence for driving consistent processes and
enhanced accuracy of forecast

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2. Implementation of newer supply chain operations of excellence for facilitating decision
making and planning especially through sales support, demand planning, systems and business
integration.
3. Incorporation of demand planners with the merchandize and reporting to the supply
chain managers for bringing the customers closer to the heart of the business and ensuring
consistent ways for working.
4. Implementation of new end-to-end structure that helped in reflecting strategic
importance of the business in driving greater simplicity and efficiency
The newer players in the scenario are not only forcing Coles Supermarket in rethinking
their older strategies and implementing newer ones but cut down excessive and unnecessary cost
across the supply chain of Coles.
Critical Evaluation of the Approach
Globalising supply chains comes with its own barriers and challenges. In presence of
varying environment, international environment there exist a number of barriers and challenges
in building a supply chain globally (Richards et al. 2013). Due to the globalisation of the supply
chain, the Coles supermarket faces an uncertain political stability due to implementation of
different agenda set by the government. Lack of critical market mass in specific countries can
negatively influence the Coles Supermarket. With globalising, the transaction cost related to
supply chain of Coles Supermarket increases due to difference in business environments. There
is also a requirement for the use of in country partners or agents along with local requirement of
content. Coles Supermarket also faces a lack of potential for repetitive purchases. Globalising the
supply chain also enhances the financial risks and longer and unpredictable lead-time of the

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suppliers. Coles Supermarket faces a limited availability of the trained personnel for the supply
and purchase of management positions. Globalizing the supply chain also brings in certain
benefits for Coles Supermarket in the form of expanded opportunities for sourcing, opportunities
for reaching newer customers in newer markets (Monczka et al. 2015). The application of theory
ensures more room for growth and better opportunities for saving money
Conclusion
The report ends with a critical evaluation of the theory on globalising supply chain. There
is also discussion on the strategies of globalising the supply chain of the supermarket chain.
Coles Supermarket is however confident that application of such a theory would help its business
scores a 100 percent.

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References
Burch, D., Dixon, J. and Lawrence, G., 2013. Introduction to symposium on the changing role of
supermarkets in global supply chains: From seedling to supermarket: Agri-food supply chains in
transition. Agriculture and Human Values, 30(2), pp.215-224.
Coles.com.au. 2018. Coles Supermarkets. [online] Available at: https://www.coles.com.au/
[Accessed 17 Jan. 2018].
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Richards, C., Bjørkhaug, H., Lawrence, G. and Hickman, E., 2013. Retailer-driven agricultural
restructuring—Australia, the UK and Norway in comparison. Agriculture and human
values, 30(2), pp.235-245.