Coles opens new automated distribution centre in western Sydney

The facility will service 229 stores across New South Wales and the Australian Capital Territory.

Jangoulun Singsit August 06 2024

Australian supermarket chain Coles has inaugurated its second automated distribution centre (ADC) in Kemps Creek, western Sydney, utilising leading Witron technology.  

The launch is part of Coles' investment of more than A$1bn ($647.717bn) in technology-driven innovation.  

Coles Group chairman James Graham and CEO Leah Weckert officially opened the facility, which will bolster product availability and streamline operations for staff and suppliers. 

Spanning 187,000m²  - equivalent to 25 rugby league fields - and with a building size of 66,000m², the Kemps Creek ADC stands as one of the largest globally.  

At full capacity, the facility will service 229 stores across New South Wales (NSW) and the Australian Capital Territory, processing more than four million cartons weekly, equating to 32 million products. 

The Kemps Creek ADC is the second of two Witron facilities Coles has launched and the largest capital investment in the company's 110-year history.  

The first ADC, which opened in Redbank, Queensland, has processed more than 140 million cartons, with a 20% improvement in product availability for customers in Queensland and northern New South Wales compared to other stores.

Coles is further expanding its investment in New South Wales, with additional funds directed towards its MilkCo facility at Erskine Park and an online customer fulfilment centre at Wetherill Park.  

The Kemps Creek and Redbank ADCs are part of Coles' broader $1bn-plus investment in technology-led innovation aimed at creating a more efficient, sustainable and safer supply chain. 

Weckert said: "Today marks a key milestone on our roadmap to enhance our supply chain and improve our operating efficiency, with a world-class facility that will deliver improved availability for our NSW customers. 

“This facility also delivers a step-change for the safety of our team, with the elimination of around 16 million kilograms of manual handling every week.” 

The Kemps Creek ADC also features a 3.5-megawatt solar solution, one of the largest in the Coles network, aligning with the group's commitment to using 100% renewable energy by the end of fiscal 2025.  

Coles will donate unprocessable edible food to community partners Foodbank and SecondBite to address food waste.

In February 2024 Coles partnered with artificial intelligence (AI) systems provider Palantir Technologies to improve workforce management and supply chain functions.  

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