Coles supply chain improves

The strong pace of reform and rejuvenation at Coles/ Wesfarmers is continuing with the supply chain re-engineering projects starting to show results according to industry analyst Laurence Wade. Supply chain re-engineering in a grocery business takes time involving changes to IT, business processes, and corporate culture. It is fraught with risk, but according to Wade, by keeping some basic principles in mind, success is likely and the rewards can be huge. Woolworths earlier rejuvenation of its supply chain helped give it a long-term competitive edge over Coles, which partially accounts for its current market dominance over Coles. Wade believes the cultural implications of the supply chain changes at Coles are the least developed (and the most important) so benefits from the investment will be patchy, but will grow over time.

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