Assessment Task - CASE STUDY Coles/Wesfarmers

For many years the Australian grocery sector has been dominated by two major players Coles and Woolworths (Safeway). Over the last decade or so both companies have been subject to scrutiny with regard to supplier management and there have been many negative claims made. There are a large number of newspaper and journal articles related to the way the company engages and works with its suppliers. In 2011, the ACCC brought charges against Coles for unconscionable conduct in dealing with suppliers and was found negligent. In response, the company appointed the former Victorian Premier Mr. Jeff Kennett as an independent arbiter to engage with suppliers and oversee disputes. Currently Wesfarmers (Coles) has 15,000 suppliers. For this research project, you will need to conduct an extensive search online. There are many newspaper and journal articles freely available online and you can also access the company website as well as many of their supplier websites.

1. On its company website, Coles states ‘We commit to strong and respectful relationships with our suppliers’. From your research, what sort of relationship does the company have with its suppliers and where does the power lie?

2. What is the voluntary Food and Grocery Code of Conduct?

a. What is its purpose?

b. When was it developed and by whom?