Coles taps Accenture to help with digital makeover

Coles has signed up Accenture to help drive the digital makeover at the heart of its long-term strategy.

Coles CEO Steven Cain. Aaron Francis/The Australian

Coles is banking on big tech to keep cost under check, with the grocery giant signing up technology services provider Accenture to help make the most of its ongoing investment in digitising its operations.

The agreement, which builds on Coles’ (COL) longstanding relationship with Accenture, comes on the heels of it sealing a multimillion-dollar deal with Microsoft to power its ‘Smarter Selling’ program.

With the ‘Smarter Selling’ initiative designed to deliver $1 billion in cumulative cost savings by full year 2023, Accenture will play a central role in integrating the Microsoft’s technology into Coles’s operations.

Apart from Microsoft’s technology, Accenture will also help implement the automation technology provided by Witron and Ocado, as well as the procurement system provided by SAP.

Coles CEO Steven Cain with Ocado CEO Tim Steiner with their new Ocado bot. Aaron Francis/The Australian

Coles, which split from its parent Wesfarmers last November, has made technology transformation key to its long-term strategy.

Apart from the Microsoft alliance, the company has picked SAP’s technology to modernise its procurement and finance processes and is investing $950m to automate its supply chain.

Coles chief executive officer Steven Cain said that the tech makeover of its operations will inject significant efficiency at stores and in the back office.

“The partnership with Accenture will enable us to deliver the efficiencies we need for long-term sustainability, and provide the agility to respond to rapidly-evolving consumer needs.”

“This is a vital part of Coles winning in its second century,” Mr Cain said.

With more than 115,000 employees across Australia and working in partnership with more than 7000 suppliers, Coles is revamping the digital environment that underpins its operations.

Under the ‘Smarter Selling’ initiative, Coles is aiming to increased automation of manual tasks in stores, deliver faster checkouts, more accurate stock ordering as well as reducing energy use.

The Accenture partnerships will also see the services provider invest in a joint innovation fund focused on exploring new technology applications within Coles.

The fund will work on building Coles’ digital capabilities and help them keep pace with the company’s long-term strategy.

“The evolution of the relationship with Accenture reflects the company’s strategy to win together through genuine partnerships with suppliers,” Coles chief information and digital officer Roger Sniezek said.