Coles urges suppliers to return to the office

As corporates around Australia struggle to force workers back to the office, Coles is battling food and grocery supplier agents refusing to leave home.

Coles is concerned the work from home trend among some key supermarket operatives is impacting its ability to efficiently and smoothly run its food and grocery supply chain. Picture: Shae Beplate

Coles is growing increasingly alarmed by the reluctance of key food and grocery workers to return to the office and continuing to work from home despite the end of the pandemic, and is concerned the trend is limiting its ability to efficiently operate its supply chain and properly stock its stores for major shopping events like Easter and Christmas.

In a new twist, Coles is urging workers not on its payroll to return to its headquarters, including workers who interact with Coles managers on behalf of some of the supermarket operator’s food and grocery suppliers.

In the spotlight are vendor replenishment planners (VRP) and brokers who are employed by food and grocery suppliers and usually work at a supermarket’s headquarters, collaborating with executives to plan and deliver goods into stores. About 120 VRPs work with Coles, mostly representing the largest food and grocery manufacturers in the country, but at present only a handful are turning up to the Coles headquarters.

As corporates around Australia work out how to encourage, or force, workers back to the office, Coles is facing the challenge of ensuring correct volumes and types of perishable goods are sent to its supermarkets at a time when food and grocery supplier agents are refusing to leave home.

The refusal of the bulk of VRP workers to head back to Coles headquarters in the Melbourne suburb of Toorak has prompted Coles chief commercial officer Anna Croft to write to suppliers, asking that their VRP planners and brokers turn up at work at least three days a week.

“Over the last few years VRPs had to navigate numerous supply chain challenges and we would like to thank you for your ongoing commitment in providing Coles and our customers exceptional availability during these times,” Ms Croft wrote in her letter to suppliers, obtained by The Australian.

She said having VRPs in the office alongside Coles managers was the norm before the Covid-19 pandemic and was crucial in ensuring that supermarkets were stocked efficiently. Now, with many working from home, collaboration was being disrupted.

“Suppliers who employ either a VRP or a VRP broker model represent a significant proportion of Coles’ daily inbound stock. Prior to Covid, our VRPs used to be based in our office (predominantly full time). This allowed both Coles & VRPs to create a strong community, provide ongoing training, support, and efficiently cascade critical information.

“However, since Covid, return to the office has been extremely slow with only a handful of VRPs making the trip which we believe has had a number of implications, particularly with supporting and onboarding new starters or those going through their first major event (i.e. Easter or Christmas).”

Ms Croft said while Coles appreciated the benefits a flexible working policy provided, the supermarket was focused on strengthening its supply chain metrics, which required VRPs to return to the office.

Coles is appealing for VRPs to come into the office at least three days a week.

“Coles would like to discuss the opportunity for your VRP/s to start coming back to the office. This will not only provide opportunity to rebuild the community but also offer better in person support for training and development for Coles requirements,” Ms Croft wrote.

‌“We identified Tuesday, Wednesday and Thursday to be the most appropriate office days. While we appreciate this is likely to be a change to several VRPs’ arrangements, we hope you agree there are several significant up­sides. I would therefore like your support to ensure your VRP is in the office on those three days.”

Coles held a VRPs office day on April 18 that included a barbecue.

In a statement to The Australian, a Coles spokeswoman said the retailer had a flexible working policy backed by an increased level of investment in technology at its support centres around the country.

“Following the worst of the pandemic, we have seen many of our team now return to the support centres for a few days a week to collaborate, attend events and socialise in person.

“Coles works with around 120 VRPs who play an important role managing orders for some of our biggest suppliers. They work with our operations and commercial teams at Coles to support production planning and manage deliveries into our distribution centres.

“As Coles innovates and upgrades our supply chain for the future, we want to encourage VRPs to have face-to-face time with our team, learn new systems and develop their skills through training and networking.”

The work from home issue continues to plague companies, with arguments raging over whether companies should or can force workers to return to the office. It is also an issue being debated by government and IR regulators, such as the Fair Work Commission.

Jessica Tinsley, director of workplace relations at the Australian Chamber of Commerce and Industry, said most employers were trying to accommodate the needs of their employees where they could, by providing fair and flexible arrangements for remote work where possible.

“This is welcome and should be encouraged. But we need to avoid a ‘one size fits all’ approach. It is just not possible for some employees to work from home. Some small businesses that are less able to support working from home arrangements are particularly in need of workers onsite.

“The Fair Work Commission has ruled that it’s reasonable for a business to require a worker to be in the office and be face-to-face for better productivity. Competition for good workers is fierce. Businesses find they need to balance employee desires for flexibility with the real benefits of in-house teamwork and immediate feedback. Though hybrid models are becoming more common, there’s real value in the energy of the office environment.”

Originally published as Coles urges suppliers to return to the office