Integrated Logistics Management: A Case Study of Coles Supermarket

This report delves into the operational planning of Coles Supermarket in Australia, focusing on the integration of logistics operations within its local supply chains. It highlights the significance of supply chain management for global business expansion in the Australian retail sector. Coles Supermarket, a major retail giant, prioritizes direct relationships with suppliers to ensure a continuous flow of supply and maintain its market position. The report emphasizes the importance of integrating logistics operations with local suppliers and leveraging technology, such as barcoding, to enhance inventory accuracy and control product pricing. By maintaining a robust supply chain, Coles effectively manages its pricing strategy, fostering a competitive advantage in the Australian retail market. This strategic approach allows the company to adapt to market changes and sustain long-term success.

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Organisational logistic supports..................................................................................................2
Integration of logistic operation...................................................................................................3
Conclusion.......................................................................................................................................3
References........................................................................................................................................4

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Introduction
The supply chain management is considered to be one of the major aspect in the global
business expansion for the Australian retailing sectors. In this regard, the report is going to figure
out the Operation planning of Coles Supermarket in Australia and puts emphasis on the
integration of the logistics operations in local supply chains. The Coles Supermarket is one of the
biggest retail giants in Australia and it is pertinent to figure out the existing retail supply
management of the company. Moreover, the report also stipulates an understanding regarding the
relationship between operational planning and the supply chain management in order to get the
insights of the logistics management.
Discussion
Organisational logistic supports
The products that Coles are distributed internationally and domestically are comprised of
the food products, household products, health products and the business items. In this context, it
can be argued that the company set up its supply chain in such a manner that it ensures and meet
all the requirements of the Australian supply chain market. The Coles Supermarket does not
want to negotiate with the suppliers through the middle men. As a result of that the company sets
its primary focus on building relationship with the suppliers directly. In case of the retail
companies it is important for the organisations to retain a continuous flow of supply for
sustaining in the market (Mylan et al. 2015). Therefore, it is important for Coles Supermarket to
trace the product after it leaves the warehouse and keep a track on the logistic supply by making
contact with the merchandise regularly.

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Integration of logistic operation
It is highly important for a retail company to integrate its logistic operation with the local
or global supply chains. In case of Coles Supermarket, the company primarily puts focus on the
local suppliers. As a result of that the direct relationship with the local suppliers is essential.
Moreover, the process is also coupled with the correct amount of inventory that delivers
customer value (Brandenburg et al. 2014). According to Kozlenkova et al. (2015) if a retailing
company fails to identify its inventory capability then it is not possible for the company to retain
its business in the high competitive market because the inventory management leads the
customer value.
In addition to this, Coles supermarket is also incorporated some technological measures
and training facilities in order to continue the supply chain intact and flawless. The barcoding
technology that Coles used, helps to ensure inventory accuracy. In fact, the direct relationship
with the local supplier will lead the company to control the price of its products (Venkatesh,
Rathi and Patwa 2015). In case of depending upon the middlemen it might cause hike in price
that would be negative to the objectives and market capitalisation for the company.
Conclusion
Therefore, it can be concluded that the supply chain management of Coles Supermarket
has an intense characteristic to shape itself with the change in the market. As a matter of fact, the
retail market in Australia is highly competitive and Coles still manages to set its price so low that
fosters an advantage to the supply chain management of Coles and provides strategic advantage
to the long run.

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References
Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S., 2014. Quantitative models for
sustainable supply chain management: Developments and directions. European Journal of
Operational Research, 233(2), pp.299-312.
Kozlenkova, I.V., Hult, G.T.M., Lund, D.J., Mena, J.A. and Kekec, P., 2015. The role of
marketing channels in supply chain management. Journal of Retailing, 91(4), pp.586-609.
Mylan, J., Geels, F.W., Gee, S., McMeekin, A. and Foster, C., 2015. Eco-innovation and retailers
in milk, beef and bread chains: enriching environmental supply chain management with insights
from innovation studies. Journal of Cleaner Production, 107, pp.20-30.
Venkatesh, V.G., Rathi, S. and Patwa, S., 2015. Analysis on supply chain risks in Indian apparel
retail chains and proposal of risk prioritization model using Interpretive structural
modeling. Journal of Retailing and Consumer Services, 26, pp.153-167.