Coles Redbank Automated Distribution Center

Project Overview

Coles has made its largest single capital and technology investment in 109 years of history with the implementation of their first Automated Distribution Center (ADC) in Redbank, Queensland. This groundbreaking facility represents a significant modernization of Coles' supply chain, designed to improve efficiency, availability, and service levels for customers, team members, and suppliers across Queensland and Northern New South Wales.

The massive 170,000 square meter site (equivalent to two Suncorp Stadiums) houses a 66,000 square meter warehouse that ranks among the biggest and most productive automated distribution centers of its kind globally. Coles selected Witron as their technology partner based on proven capability to deliver this level of advanced logistics infrastructure.

The facility provides the full range of over 18,000 ambient grocery SKUs to 219 stores spanning from Lismore in New South Wales in the south to Port Douglas in Queensland in the north, creating a comprehensive supply chain solution for the region.

Technical Solution

High-Capacity Storage System

The storage capability is empowered by the facility's height and three-dimensional design, featuring approximately 70,000 pallet spaces. This represents twice the stock holding capacity of Coles' current Queensland network, enabling more efficient inventory management and product availability.

Key Features

The facility's massive scale - 170,000 square meter site with 66,000 square meters of warehouse space - provides unprecedented capacity for grocery distribution, making it one of the largest and most productive ADCs of its kind globally.

The system processes an impressive 4 million cases per week (32 million products) with the ability to hold 70,000 pallets, representing twice the capacity of Coles' existing distribution centers in both processing throughput and storage capability.

The comprehensive vertical and horizontal integration creates a seamless logistics platform that connects suppliers through to stores, optimizing the entire supply chain rather than individual components.

Results & Benefits

The ADC delivers twice the case processing capacity and twice the pallet holding capacity compared to Coles' existing distribution centers, while simultaneously halving the total distribution footprint through more efficient space utilization.

Operating costs are significantly reduced, with the ADC operating at two-thirds of the costs of an existing distribution center, contributing to improved structural cost efficiencies for the Coles business.

Store availability has dramatically improved, with out-of-stocks more than halved in stores served by the Redbank facility, primarily because all SKUs in Queensland are now ranged under one roof, improving inventory management and replenishment accuracy.

Challenges & Solutions

The challenge of modernizing Coles' supply chain to improve efficiency and availability was addressed through the implementation of this fully automated distribution center with Witron's advanced technology, creating a state-of-the-art logistics platform.

Processing the high volume of ambient groceries (over 18,000 SKUs) required a facility designed to handle 4 million cases weekly with 70,000 pallet spaces, which was achieved through the three-dimensional storage design and automated processing systems.

System Integrator

Witron served as the system integrator, bringing proven capability to deliver this level of technology and investment. Their expertise in creating integrated logistics platforms enabled the successful implementation of what may be the most cutting-edge dynamic distribution center in the southern hemisphere, delivering economic, ergonomic, efficient, safe, and sustainable supply chain improvements for Coles.