Australia's Coles opens second automated distribution centre in $1b tech push

It is set to process over four million cartons weekly, equating to 32 million products.

Australia’s Coles Group has launched its second Automated Distribution Centre (ADC) at Kemps Creek as part of a $1b investment in technology. 

Located 40 kilometers west of Sydney, the Kemps Creek ADC covers 187,000 square meters, equivalent to 25 rugby league fields, and features a 66,000-square-meter building. It is one of the largest and most efficient automated centers globally.

The facility, which uses Witron technology, was inaugurated by Coles Group Chairman James Graham and CEO Leah Weckert.

The Kemps Creek site, which will eventually service 229 stores across New South Wales and the ACT, is set to process over four million cartons weekly, equating to 32 million products. Annually, the facility aims to handle around 1.6 billion sales units.

This new ADC follows the opening of Coles’ first Witron facility in Redbank, Queensland, in May 2023. The Redbank ADC has processed more than 140 million cartons, resulting in a 20 percent improvement in product availability for Queensland and Northern New South Wales customers.

The Kemps Creek and Redbank ADCs are central to Coles' record $1b investment in supply chain technology. This includes an additional $400m allocated for two online Customer Fulfillment Centres, one in Wetherill Park, NSW, and another in Truganina, VIC.

Graham lauded the achievement, noting the extensive effort from over 4,400 people who contributed 1.8 million working hours to the project.

Additionally, the facility features a 3.5-megawatt solar installation, amongst the largest in Coles' network. The group aims to operate on 100% renewable energy by the end of FY25. The facility will also support food waste reduction efforts by donating unsellable but edible food to community partners Foodbank and SecondBite.