Coles has announced the official opening of its first Customer Fulfilment Centre (CFC) in Victoria, bringing together ‘world-class’ technology and automation as part of its technology-led supply chain innovation journey.
The Truganina-based CFC, located just 20km west of Melbourne’s CBD, is the first of two CFCs to launch this year as part of a $400 million partnership with Ocado Group.
Once fully operational, the modern facility is expected to deliver an enhanced shopping experience for online customers – with better availability, fewer substitutions, increased range of products and improvements in the shelf-life of staples like mince and milk.
The Victorian CFC’s delivery catchment will span the growing Melbourne region from Ballan in the west across to Bunyip in the east, and from Beveridge in the north down to the Mornington Peninsula.
It will utilise cutting-edge technology such as artificial intelligence, advanced robotics and automation to ‘transform’ the way Coles Online orders are picked, packed and delivered.
The site was opened on 20 September by Victorian Acting Premier Tim Pallas, Coles Group Chairman, James Graham, and Coles Group CEO, Leah Weckert, who said she was excited to see the opening of the first location “of its kind in the country”.
“Today’s opening signals a major step change in our online grocery deliveries that will offer our customers greater choice, better availability, improved freshness and more flexible delivery options,” she said.
“This transition from a local, store-based fulfilment model to a central, world-class facility will enable us to better serve the greater Melbourne region, home to more than five million people.”
The Truganina site has a footprint of over 87,000 square metres and the capability to hold three million units of stock, while being able to process more than 10,000 customer orders per day when running at full capacity.
The state-of-the-art site also features a centralised hub known as ‘The Hive’, where a fleet of over 700 bots will fulfil a customer order containing 50 items in five minutes, while an artificial intelligence ‘air traffic’ control system will oversee the bots as they move around giant 3D grids, transporting containers of grocery items to be packed and delivered by Coles team members.
The CFC will employ over 1,000 workers and will feature a fleet of more than 200 home delivery vans specially designed with dual compartments to ensure fresher products while reducing emissions and a side door to make unloading safer and faster for drivers.
According to Coles, delivery times will also be improved – with Ocado’s technology enabling Coles to calculate the most efficient routes based on real-time conditions and tonnage of the home delivery vans.
Graham said he was proud to see another significant investment in Coles’ technology strategy come to life.
“The opening of this CFC is the result of a five-year partnership with Ocado, whose world-class experience is helping Coles to innovate and meet the changing needs of our customers,” he said.
“It’s been a significant 18 months for Coles Group with the opening of two automated distribution centres in Kemps Creek, New South Wales, and Redbank, Queensland.
“Coupled with today’s launch of the first of two CFCs, we’ve made some meaningful progress in our commitment to use the best technology to drive supply chain innovation.”
The Truganina CFC has been designed to support best-practice sustainability, with features of the building including a two-megawatt solar installation, sensor lighting, water recycling system and 100-per-cent recycling of cardboard.
The official opening of Truganina will be followed by a second CFC site in Wetherill Park, NSW, next month.
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