Coles/Wesfarmers For many years the Australian grocery sector has been dominated
ID: 383107 • Letter: C
Question
Coles/Wesfarmers For many years the Australian grocery sector has been dominated by two major players Coles and Woolworths (Safeway). Over the last decade or so both companies have been subject to scrutiny with regard to supplier management and there have been many negative claims made. There are a large number of newspaper and journal articles related to the way the company engages and works with its suppliers. In 2011, the ACCC brought charges against Coles for unconscionable conduct in dealing with suppliers and was found negligent. In response, the company appointed the former Victorian Premier Mr. Jeff Kennett as an independent arbiter to engage with suppliers and oversee disputes. Currently Wesfarmers (Coles) has 15,000 suppliers. For this research project, you will need to conduct an extensive search online. There are many newspaper and journal articles freely available online and you can also access the company website as well as many of their supplier websites.
1. See if you can find out how new suppliers establish relationships with Coles? a. What is the role of the Coles Category Buyers?
2. What is the difference between suppliers and contractors at the Coles Group?
3. Find the Online Contractor Induction: a. Give an example of some of the businesses who are contractors at Coles b. Review the online induction, how comprehensive do you think it is?
Explanation / Answer
1.
a) Role of Coles Category Buyers: To buy from the Supermarket Giant Coles' 220 suppliers, the supermarket Giant has buyers. These interact with Coles' supply chain. These are involved in buying and trading. These buyers are category buyers, for instance, category buyers for meat, bakery, Gluten-free, and, Kosher.
Coles has a 7 point-supplier Charter for long-term relationships, integrity, and, transparency. New suppliers can get into long-term contracts with Coles. Their businesses get support from Coles and these grow with Coles giving sustainability to these relationships.
The seven-point charter is for building relationships with suppliers through transparency in grocery supply agreements, ranging, and, delisting, trading relationships, supplier dispute resolution framework.
Difference between suppliers and contractors
Contractors are those working for the organization in construction, forecourt; forming the framework for the functioning of the supply chain as builders, electricians, plumbers, installation & demolition, etc. Contractors work for Cole in health & safety management, incident management, electrical safety, etc.
Suppliers deliver products for customers.
Businesses who are contractors at Coles
Contractors for plant and equipment, chemicals & MSDs, asbestos register
Online induction
Coles portal for online contractor induction is a standardized induction program for general safety. The course takes an hour. Contractors must take and clear a test after the one-hour course. Contractors get an induction number after the online induction. This is for those undertaking physical work. Employers get the contractors inducted. These contractors work for Cole group websites - Coles Supermarkets, Coles Logistics, Spirit Hotels, Quaffers, Vintage Cellars, Kmart Tyre & Auto, state and national office locations, etc.