Value Chain Analysis of Coles

Coles Group Limited is a grocery, consumer goods, and retail chain Australian public company. George Coles founded the company in 1914. Today, we’ll discuss the value chain analysis of Coles Group supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Substitutes of Coles Group

• Bidvest Australia
• Costco
• Walmart
• Woolworths
• Target
• Tesco
• Amazon
• Aldi
• IKEA
• Home Depot
• eBay

The Value chain analysis of Coles Group supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of Coles value chain analysis company example as follows;

Value Chain Analysis of Coles Group

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Coles Group supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Coles Group

Some of the five main primary activities in the value chain analysis of Coles Group supply chain analysis are as follows;

Inbound Logistics of Coles Group

I-Suppliers Network

Coles has established a very large network of suppliers comprising approximately 9000 suppliers in various countries worldwide. In order to ensure a smooth supply of resources at its retail stores, the brand develops a good relationship with them and deals with a diverse range of suppliers. In fact, the company deals with two types of suppliers;

• Goods for resale suppliers
• Goods not for resale suppliers

II-Standards for Supply Chain

Coles deals with a very large number of suppliers. In order to ensure their performance, the retail chain brand has set up specific rules, guidelines, and standards for its suppliers. The objective is to make sure that they’re complying with human rights standards, sourcing ethically, environmental sustainability, and commitment to zero waste and zero carbon emission rate.

III-Responsible Sourcing

Coles partners up with such suppliers that would have a limited negative impact on the environment and society. Some of the following products and goods have a great potential impact on the environment;

• Wheat
• Rice
• Sugar
• Livestock feed
• Soy
• Eggs, meat, and dairy

The retail chain brand collaborates with suppliers and farmers which would have a limited impact on the environment and lower deforestation.

Outbound Logistics of Coles Group

I-Distribution Centers

Coles has established a network of roundabout 300 distribution centers. They have the capability to serve hundreds of sites and stores in their daily routine network by delivering goods to retail stores. Their objective is to amplify operational efficiency and derive innovation and creativity in the distribution centers.

II-Transportation

Coles Collect offers freight and transportation solution services to manage the transportation of suppliers and distribution centers. In fact, Coles Collect is the largest transportation service provider of the company’s distribution centers.

• Collaborating with DCs, carrier partners, and suppliers
• Efficiently managing the transportation of goods for resale
• Maintaining safety, availability, and service
• Streamlining demand planning with suppliers and transport functions

Operations of Coles Group

I-Automated Warehouses

Coles is building automated warehouses and distribution centers. Automated Robots and drones operated by computer software would manage all the functions and operations of the warehousing. They perform the following functions;

• Sorting,
• Packaging,
• Supply replenishment
• Product picking accurately
• Stocking shelves faster

Marketing & Sales of Coles Group

I-Low Price Advertisement Campaign

Coles runs marketing and advertisement campaigns that focus on highlighting the low-price groceries of the company. Some of the main taglines of the retail chain brand are as follows;

• “Cheap Groceries”
• “Extra Value for You – and Me”
• “Why Pay More”

The objective of low-price ad campaigns is to attract the attention of customers, increase sales, and provide more value to the customers with lower-price shopping.

Services of Coles Group

Coles Group offers multiple types of services to customers to earn their trust and confidence. Some of them are as follows;

• Insurance
• Credit card
• Personal loans to families
• Financial services
• Loyalty programs
• Affordable prepaid plans for phone
• Convenient and cheap shopping

Supporting Activities of Coles Group

Some of the main supporting activities in the value chain analysis of Coles Group supply chain analysis are as follows;

Infrastructure of Coles Group

Coles Group has a well-established infrastructure of supplier network, distribution centers, warehousing facilities, retail chain stores, and transportation. Well-developed on-ground infrastructure helps the retail chain brand to smoothly perform its operations and efficiently deliver the finished goods to the end consumers.

HRM of Coles Group

Coles has employed roundabout more than 120,000 employees to manage its global retail chain operations. The human resource management department of the company plays a key role in building a healthy workplace environment; providing equal employment opportunities, promoting diversity, and innovative workplace culture. As a result, it helps the company to achieve growth and efficiency.

Technological Development of Coles Group

Coles Group is investing a significant amount of capital resources in automation technology, robots, and drones. It allows the retail chain brand to smoothly and accurately perform its various functions and operations with limited or no human error. As a result, it helps the company to efficiently stock the shelves, and replenish the old inventory with the new ones.

Procurement of Coles Group

Coles is highly cautious about ethical and responsible sourcing and procurement. In fact, the company has set up clear guidelines and standards for suppliers and partners to engage in ethical and sustainable practices; and comply with the human rights standards.

Conclusion: Coles Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of Coles Group Limited; we have realized that Coles is the world’s leading retail chain Australian company. If you are learning about the Coles value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.