Kroger is Rolling Out an Ocado-Powered Customer Fulfilment Centre
Michael Hemsworth — April 16, 2021 — Business
Kroger has announced that it will be launching a Customer Fulfillment Centre (CFC) in the US that will make use of technology developed by delivery service Ocado. The launch follows on an exclusive partnership that was formed back in 2018 between the two brands and will help to expand Kroger's ability to expand its customer reach and more. The center will be located in Monroe, Ohio with a size of 375,000-square-feet and will utilize Ocado technology to combine machine learning, vertical integration and robotics for fast, affordable delivery of fresh foods.
Co-Founder and CEO of Ocado Group Tim Steiner spoke on the new Kroger Customer Fulfilment Centre launch saying, "This moment marks the next phase of our partnership, and it comes against the backdrop of soaring demand for online grocery options in the US and worldwide. In the coming years, we will open more automated CFCs across a range of sizes with Kroger. We will also roll out components of our software solutions to stores in collaboration with Kroger’s existing seamless platform to support fulfilment of curbside pickup orders.”
Co-Founder and CEO of Ocado Group Tim Steiner spoke on the new Kroger Customer Fulfilment Centre launch saying, "This moment marks the next phase of our partnership, and it comes against the backdrop of soaring demand for online grocery options in the US and worldwide. In the coming years, we will open more automated CFCs across a range of sizes with Kroger. We will also roll out components of our software solutions to stores in collaboration with Kroger’s existing seamless platform to support fulfilment of curbside pickup orders.”
Trend Themes
1. Automated Fulfillment Centers - More companies may begin to invest in automated fulfillment centers to improve delivery efficiency and customer reach.
2. Machine Learning in Retail - Retailers may start using machine learning to optimize fulfillment, improve inventory management, and better target customers.
3. Integration of Robotics in Logistics - Logistics companies may look to integrate robotics to speed up delivery times and improve overall efficiency.
Industry Implications
1. Retail - Retailers may want to explore the use of automated fulfillment centers to improve delivery speed and reach.
2. Logistics - Logistics companies may adopt robotic technology to improve overall efficiency and speed up delivery times.
3. Grocery - Grocery chains may invest in machine learning and robotic technology to optimize inventory management and improve fulfillment operations.
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