Coles CEO Calls for Greater Investment in Supply Chains Amid Rising Disruptions

Coles CEO Leah Weckert is urging governments to take the lead in strengthening Australia’s critical supply chains, which ensure the delivery of essential goods such as fresh food, groceries, and medicines. With severe weather events increasingly cutting off remote communities, she believes investment in resilient infrastructure is crucial.

Having recently navigated the logistical challenges of supplying groceries to northern Western Australia after extreme flooding, Ms Weckert is now tackling similar disruptions in Queensland due to Cyclone Alfred. She argues that businesses and policymakers must integrate these “once-in-a-century” crises into their long-term planning, as such events are becoming more frequent.

Speaking ahead of her keynote address at The Australian Global Food Forum, Ms Weckert emphasised Coles’ commitment to communities during natural disasters. “Our team members live and work in these regions, and it’s vital that we support them when disaster strikes. Australia’s vast landscape makes supply chains particularly vulnerable, as they rely heavily on road and rail networks,” she explained.

Many remote communities do not have sufficient local food supplies to sustain them when transport links are severed. Ms Weckert stressed the need for investment in infrastructure that can endure extreme weather conditions. “Every time a cyclone or severe storm hits, we see infrastructure being washed away. We need a more robust system capable of withstanding the climate challenges we now face,” she said.

While some of Australia’s key transport routes are privately owned, Ms Weckert believes governments must take responsibility for driving improvements. “Coles takes proactive measures, such as stockpiling essential goods in at-risk areas ahead of cyclone season. However, national infrastructure cannot be left solely to individual businesses. Reliable transport networks are essential not just for supermarkets but for delivering medical supplies, fuel, and other critical goods,” she noted.

To mitigate disruptions, Coles strategically positions trucks near affected regions, ready to move as soon as roads become passable. “In Queensland, for instance, we had fully loaded trucks waiting at the edge of floodwaters, prepared to deliver supplies the moment clearance was granted. This approach ensures we can act swiftly, but it also incurs significant costs, with drivers and stock on standby for days,” Ms Weckert explained. Perishable goods are particularly at risk, sometimes requiring entire truckloads to be turned back and restocked.

She also highlighted the challenges posed by differing regulations across state and local governments. “Crossing state lines during a natural disaster comes with regulatory hurdles that complicate logistics. Greater harmonisation of these rules would help streamline supply chains and improve response times,” she suggested.

Ms Weckert, who took the helm at Coles in 2023 following a distinguished career in executive leadership and consultancy, has overseen strong performance for the company. Over the past year, Coles’ shares have climbed by 13.6%, outpacing competitor Woolworths, which has seen an 11.7% decline.

With extreme weather events becoming a regular occurrence, Ms Weckert’s message is clear: resilient supply chains are not just a business necessity but a national priority, requiring coordinated effort and long-term investment.

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