Technical difficulties at Coles Myer

Coles Myer has scrapped plans to install a new warehouse management system, and has restricted a project that improves forecasts for grocery demand, due to unforeseen complexities.

In the wake of expensive failures at UK grocer Sainsbury’s, the Australian retail giant is currently looking to slash A$425 million ($337 million) in annual costs from its distribution operations by speeding up its supply chain. But the projects are proving more technically challenging than expected.

Coles’ eventual aim is to match Woolworths’ advanced Project Refresh reforms that aim to save its competitor A$5 billion over the next five years.

Melbourne (AUS)