Ocado officially launches first CFC in Australia with Coles

Coles has started another exciting chapter in its technology-led supply chain innovation journey with Ocado Group, with its first Customer Fulfilment Centre (CFC) officially opening in Victoria.

Located just over 20 kilometres west of Melbourne’s CBD, the Truganina CFC was opened this morning by the Victorian Acting Premier Tim Pallas MP, Coles Group Chairman James Graham, Coles Group CEO Leah Weckert and Ocado Group CEO Tim Steiner. The site has a footprint of more than 87,000 square metres — four times the size of the Melbourne Cricket Ground — and can hold three million units of stock while having the ability to process more than 10,000 customer orders per day when running at full capacity.

It’s the first of two CFCs to launch this year as Coles and Ocado Group reach an exciting milestone in their partnership, which brings together world-class technology and automation to enhance the shopping experience for Coles Online customers.

The CFC utilises a unique blend of artificial intelligence, advanced robotics and automation to transform the way orders are picked, packed and delivered. The state-of-the-art site houses a fleet of more than 700 bots, able to fulfil a 50-item order in just five minutes.

Added benefits for Coles Customers

The new facility will deliver better availability, fewer substitutions, an increased range of products and improvements in the shelf-life of staples like mince and milk.

Coles Chief Executive Officer Leah Weckert shared her excitement about the opening of Coles’ inaugural CFC in Victoria - the first 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. We sought the best global technology in the world to reimagine the Coles Online experience here in Australia. 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."

Tapping into the appetite for customers to create restaurant-quality meals at home, the CFC will house a range of speciality brands and local foods from smaller suppliers. This extended product range will also span health and dietary, vitamins and baby categories, offering a wider selection of brands to support customers' changing needs.

Additional features of the CFC include: an on-site bakery, a fresh produce area, and the option to choose between an array of delivery windows from 5am-10pm.

Delivery times will also be improved, with Ocado’s technology giving Coles the ability to calculate the most efficient routes based on real-time conditions and tonnage of the home delivery vans.

Coles Group Chairman James 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. 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 build including a two-megawatt solar installation, sensor lighting, water recycling system, and 100% recycling of cardboard.

CEO of Ocado Group, Tim Steiner, said he was thrilled to be a part of the step-change for Coles customers with the opening of the first CFC:

"It’s a great moment for Ocado as we mark the start of our operations here in Australia with Coles. This is one of the fastest-growing markets in the world for grocery ecommerce, and Coles is already a market leader in the online channel. As these CFCs ramp up both here in Victoria and in New South Wales, Coles Online customers in metropolitan Melbourne and Sydney will get to experience a game-changing difference in the quality of service available online."

The official opening of Truganina will be followed next month by a second CFC site in Wetherill Park, New South Wales.
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The history of Truganina

The Truganina CFC is proudly named Brungilo Curran, meaning Stringybark Gum Tree.

The site of the Truganina CFC — Brungilo Curran — is home to the Bunurong People. The name and associated artwork at the Truganina CFC were developed through consultation with the local Bunurong community and local artist Kobi Sainty.