ECU MAN5410: Project Integration and Sustainable Procurement at Coles

This report examines sustainable procurement strategies for Coles Supermarkets, beginning with an analysis of the Australian retail market, considering both private and business customers, and how purchasing behaviors are evolving. It incorporates current news and data to illustrate market dynamics and stakeholder influences. The report then outlines specific sustainable procurement practices Coles could implement, focusing on capital, maintenance, and operational activities, differentiating between project and operational approaches. It explores the impact of new technologies on procurement, considering both end-customers and supply chain producers, and forecasts potential future scenarios for Coles. Finally, the report develops a project integration management plan emphasizing procurement aspects, designed to facilitate the transition of other supermarkets from traditional to sustainable procurement strategies, using a provided template as a guide.

Running head: SUSTAINABLE PROCUREMENT: COLES SUPERMARKETS
Sustainable Procurement: Coles Supermarkets
Name of the Student
Name of the University
Author Notes:

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1. Describe the retail trade market in Australia. You should consider private and business
customers, and how they purchase now and how it may change in future. Support your
answer using publicly available data/statistics. Ensure your answer include recent
actions that have taken place by various stakeholders as set out in the current news and
explain how this could influence buyer actions in future.
Ans. Regardless of the nature of competitiveness of the retail industry, it can be said that the
scope of operations of the retail industry varies (Gaur & Kesavan, 2015). The aspects associated
with the operations of the companies in the retail sector varies depending on the attitudes of the
consumer community. Furthermore, it depends on the nature of the industries that are present.
The Australian retail industry is the assimilation of businesses such as e-retailers, departmental
stores, super markets, general stores, malls and others (Price, 2016). In Australia, some of the
most popular retail supermarkets are Woolworths, Coles and Costoco (Mortimer, 2013). The
latter have been able to gain the majority of the market share in the industry. Furthermore, they
have been able to gain effectiveness in catering to operations while catering to the needs of
environment sustainability.
With the increase in the adverse environmental effects as a result of the malpractices
carried out by organisations in their operational practices. It has been found that most of the
waste that are generated by the companies in the retail industry are not disposed in landfills
where they accumulate. Furthermore, the accumulation of the waste consists of wastes that are
also non-biodegradable and sometimes even toxic in nature. The leads to the degradation of the
quality of life of whatever biotic component comes in touch with the same. Furthermore, the
methods of waste disposal are limited to incineration which further results in degradation of the
quality of air by releasing harmful substances into the same. As a result of the sad activities and

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the implications of the activities, regulations have been passed by the government that cater to
the needs of conservation of the environment. Companies regardless of their mode of operations
have to comply with the laws and regulations that have been established in order to carry out
operations as usual in the industry that they are a part of (Berliner & Prakash, 2015). The
companies operating in the retail sectors have to comply with the same. Apart from the
opportunity to gain effectiveness in operations, the companies in the retail industry can gain
competitive advantage against each other apart from being able to contribute to the sustainable
needs of the environment.
It has been also witnessed that the consumer community has gained awareness regarding
the needs for conservation of the environment. Carrying out activities such as protection of the
environment through small contributions such as eliminating the use of plastic can help the
consumer by gaining utility from conserved efforts through the protection of the environment.
Thus, the companies operating in the said industry have to ensure that they comply with the
standards established by the regulatory bodies, not only to be able to sustain their operations, but
also to contribute to the sustainability of the environment.
2. Outline possible sustainable procurement practices for Coles. You should consider its
approach to capital, maintenance and operating activities. You should also consider
project versus operating activities.
Ans. Sustainable procurement refers to carrying out activities such as establishment of the
facility, operations in terms of goods and service exchange and general modes of operations that
are associated with the operations of a said company in a particular industry (Large, Kramer &
Hartmann, 2013). From the case study it has been found that the Coles aims to contribute to the
sustainability of the environment through an array of activities that help in terms of development

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of activities such as gaining appreciation from the consumer community, gaining corporate
governance through stakeholder engagement and most importantly contributing to the needs of
the environment. It has been found out that the Coles super markets has been committed to the
activity of sustainable development of the environment through the commitments that they have
stated clearly (Lawrence, Richards & Lyons, 2013). It has been found out that most of the waste
that is generated by companies in the retail industry are disposed in landfills thus leading to the
development of dire consequences for the environment. Hence, the company aims to gain the
stature that allows them to divert 90% of the waste generated away from the landfills. A
considerably high amount of waste is generated while a company is operating in the retail super
market industry. Same applies for Coles super markets as a result of which they have developed
a commitment to cut down the amount of waste that is generated by half. The activities that will
be used by the company in terms of reducing the waste is through the donation of the remaining
but edible for to the under privileged communities. The food that is deemed to be unsuitable for
consumption is converted to compost which is latter used as a source of energy. The food items
that remains unsold and in the inventory of the supermarket is donated to an NGO known as
Second Bite who then transfer the underprivileged communities. The objective that has been
taken by the company is to help in terms of provision of food to needy Australians. The aim that
has been taken up by the company is to gain effectiveness in operations that helps in terms of
development of activities through which they can provide 100 million meals to the people who
are needy. The said goal can be achieved by the year 2020.
Lean supply chain management is instated in the operations of the company where the
company operates with the company in order to gain favourable outcomes in terms of reduction
of wastage in the operations of the supply chain. The packaging to be carried out by the company

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will be incorporated with the use of materials that are recyclable. This will help in terms of
reduction of plastic accumulation. Coles branded packages are to be created from materials that
are deemed to be effective in terms of development of activities that help in terms of
development of activities that help in gaining effectiveness in terms of conservation of the
environment. Furthermore, it has been recognised that the activities of the company is to cater to
the removal of activities associated with the removal of plastic from the operations of the
company. This, will help in terms of development of activities through which the unnecessary
packaging of materials can be removed from operations. The company introduced the soft plastic
recycling program, bought over 500 recycled benches and introduced recycle bins in every Coles
super Markets. The labelling to be carried out by the company is to be carried out in an effective
manner, so that recycling instructions are clearly available from the labels of different products
found at the store.
3. Consider new technologies and the impact they are having on procurement, both for
end customers and for producers in the supply chain. Using material from current
business literature or journal articles, describe what the future might look like for an
organisation such as Coles.
Ans. The rapid rates of innovation that is taking place in the industry has resulted in the
development of new forms of technology by incorporating which the companies are aiming to
gain competitive advantage in the industry that they are operating in (Hermann, Köhler &
Scheepens, 2015). It can be said that efficient usage of technology not only allows for efficacy in
terms of achievement of organisational goals, it also acts as a boost for having favourable
relations with the suppliers and the consumer community. In the modern business environment
technology can be used in effective manner through which the companies gain effectiveness in

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capturing the pulse of the market. The following section will, evaluate the impact of technology
on the consumer community and the suppliers. There are various sustainable activities that are
being carried out by various organisations on a regular basis. The latter can be improved with
help from the part of the consumer community. The consumers can come across the motive
through forms of technology such as smartphones through the social media and similar sources.
Forms of technology have been developed to continue to the sustainability of the
environment. There is technology that has been developed for gaining effectiveness in terms of
recycling of plastic, creation of recyclable material, generation of biogas and various other forms
of technology that enable consumers to contribute to the environment. From the perspective of
the suppliers, there are activities such as assortment, assembling, dispatching and other
associated to the functioning of intermediaries in a supply chain. Mechanising the process can
help in terms of development and maintenance of a fast process. With the increase in
transparency in terms of operations through the use of technology, the members of the supply
chain can communicate extensively with each other. The transit can be improved with
considerable amount of development in terms of gaining favourable outcomes as result of the
increased mobility and efficiency in the operations.
For an organisation such as Coles, who are carrying out operations in the industry a
sustainable motive can be deemed to be favourable in nature. Such companies who act according
to the needs of the environment and cater to the needs of the under privileged communities is
likely to face favourable nature of operations. Furthermore, the companies can be on the
receiving end of appreciation from the end of the diverse consumers of the community.
Moreover, they are likely to gain effectiveness in gaining compliance with the legislative and
regulatory bodies.

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4. Develop a project integration management plan that emphasises the procurement
aspects, and that could allow other supermarkets to transition from traditional
approaches to sustainable procurement strategies. See the sample Procurement
Management Plan template as a guide.
Ans. For the said case it has been found that the aim of the Coles is to cater to the needs of
sustainability while the company is operating in the Australian retail industry. Unlike traditional
approaches, the approach that has is to be taken by Coles is characterised by a sustainable
mindset. Procurement of operations is a key area that the company needs to contribute to as that
will help the latter in the achievement of their organisational goals as well as help the company
in catering to the needs of the environment which is deemed to a ground through which the
company is likely to gain effectiveness in operations and a competitive advantage in the long
run. The company needs to ensure that they communicate their motives to the all the key
stakeholders associated to the organisation. A communication plan is the method through which
the company can communicate effectively with the diverse groups of stakeholders associated to
the company (Kim & Dear, 2013). Furthermore, it can be said that the company should cater and
adhere to the diverse policies and legal compliances in order to gain effectiveness in operations
and will allow the firm in terms of operations in the industry. Furthermore, marketing of the
procurement activities will help in terms of increase the awareness about the motives of the
company in the consumer community that through which the company will be able appreciation
from the consumers (Tseng, Tan & Manalang, 2013). The practices that will be carried out by
the company will help in terms of help the company in transition from traditional to sustainable
procurement.

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The Australian retail industry is highly competitive in nature and thus companies need to
carry out activities through which they can separate themselves from one another. Thus, it has
been identified that Coles Supermarkets has adopted a strategy that is characterised by a great
deal of affiliation with sustainability. The company has identified that conservation of the
environment is a CSR activity through which they can contribute to the environment and develop
goodwill in the market that they are operating in.

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Mortimer, G. (2013). FactCheck: is our grocery market one of the most concentrated in the
world?. The Conversation, (12).
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