Why Smart Retailers Must Embrace Technology to Succeed in 2025.

As 2025 dawns, many are calling it the "Year of Transformation," with organisations across industries doubling down on advanced technologies to streamline processes and drive efficiencies in their supply chains.

For Australian retailers, the landscape looks promising. The Reserve Bank of Australia is expected to reduce interest rates in the near term, and with inflation trending downward, economic conditions are poised to improve. Retailers that seize the moment and invest in future-ready systems and technologies, like Coles Group, will be best positioned to capitalize on rising consumer demand.

As reported by iT News back in November, Coles Group, a standout in strategic innovation, announced several major technology investments during its Investor Day. One which has largely flown under the radar was the implementation of Manhattan Active TMS, a cutting-edge transportation management system from Manhattan Associates, replacing its legacy OneNet solution.

“This (Manhattan Active TMS) gives us revenue and cost visibility, it onboards suppliers faster, and it also has full tracking and traceability,” said Matt Swindall, Chief Operating Officer of Coles Group, during the announcement.

The investment in Manhattan Active TMS reflects Coles' commitment to supply chain excellence. The system, recognised as a leader in the Gartner Magic Quadrant for Transportation for six consecutive years, boasts a cloud-native architecture and unified supply chain platform. These capabilities enable real-time visibility, predictive analytics, and powerful automation tools that help break down execution silos and improve decision-making.

“Manhattan Active TMS is designed to manage every transportation function, across any mode or size of network, and leverages advanced intelligence to solve even the largest and most complex transportation challenges,” said Bryant Smith, Director of Product Management at Manhattan Associates.

But this was just one piece of the puzzle. Coles also revealed plans for a third automated distribution center in Truganina, to serve stores across Victoria and Tasmania. In addition, the company celebrated the opening of its second automated distribution center in Kemps Creek, New South Wales—a milestone representing the largest capital investment in Coles' 110-year history.

These investments highlight Coles’ forward-thinking approach to meeting the demands of a rapidly evolving retail environment. As Australia's retail sector prepares for a potential uptick in demand thanks to improving financial conditions, companies must follow Coles' lead by acting strategically. Technology investments that enhance visibility, efficiency, and scalability will be crucial for success.

In a competitive and fast-paced landscape, those who embrace advanced systems like Manhattan Active TMS will be well-equipped to manage complexities, eliminate inefficiencies, and drive sustainable growth. For Australian retailers, the time to act is now—2025 is shaping up to reward those prepared to lead the transformation.

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