Coles Myer's e-commerce grocery business, Coles Online, has signed a five-year partnership agreement with Australia Post, turning over the entire customer order fulfilment process to the corporation.
The deal expands Australia Post logistics business including a Post Fulfilment Online operation for Coles.
The winning solution offered by Australia Post includes a substantial investment in new electronic systems and work practices to fulfil grocery orders.
Both Coles Online and Australia Post are gearing up for an anticipated growth in grocery online shopping in Victoria and NSW.
E.colesmyer managing director Jon Wood said Australia Post has provided delivery services for Coles Online from the beginning of the business and this is a logical extension of that relationship.
"Coles Online will continue to own the stock, set the ranges, maintain the customer relationship and market the brand -- this is still our business, but we are now using an expert agency to complete the order processing," he said.
General manager of Australia Post's logistics division Alec Ceselli said the deal is the creation of an "electronically-enabled multiple order fulfilment environment".