We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
Home » Kroger advances plan to partner with Ocado on e-grocery DCs
Forward Thinking

Kroger advances plan to partner with Ocado on e-grocery DCs

November 1, 2018
Ben Ames
No Comments

Supermarket chain the Kroger Co. has firmed up its plans to build 20 highly automated warehouses for handling e-commerce grocery orders in a tie-up with British retailer and technology provider Ocado Group plc, Ocado said Tuesday.

Cincinnati-based Kroger will announce the location of the first three customer fulfillment centers (CFCs) within the next several weeks, according to the terms of a new "master services agreement" between the partners.

Under the terms of that agreement, Kroger is expected to order the first three CFCs by the end of 2018 and order a total of 20 CFCs over the first three years. Ocado will spend an estimated $117 million to build the first three facilities, preparing each one to "go live" within two years of its ordering date. In turn, Kroger has increased its ownership stake in Ocado to six percent, the partners said in the terms of their deal first announced in May.

Ocado—which operates an online grocery and general merchandise retail business of its own in the U.K.—will develop and operate those sites by installing and maintaining modules of mechanical handling equipment (MHE). The company recently shared a video tour of one of its own automated DCs for handling online grocery retail orders, located in Andover, Hampshire, U.K.

The deal with Kroger, which serves nine million customers daily through its 2,800 retail food stores and digital shopping portal, marks Ocado's largest corporate partnership to date. Through its Ocado Solutions branch, the firm has also contracted its services to operate the online business of Wm Morrison Supermarkets plc in the UK, Groupe Casino in France, Sobeys in Canada, and ICA Group in Sweden.

Ocado Solutions' Ocado Smart Platform (OSP) includes online ordering, automated fulfillment, and home delivery capabilities, the firm says. The OSP suite of products is an enabling platform provided as a service to retailers, comprising access to Ocado's physical infrastructure solutions to run efficient warehouse operations for the single pick of products, and access to the proprietary software applications required to operate an online grocery business, including products from user interfaces through warehouse operating and control systems, logistics, route planning, and optimization, Ocado says.

"The Kroger and Ocado teams have been working hard for some time to prepare for the opening of the first CFCs in the United States," Luke Jensen, CEO of Ocado Solutions, said in a release. "We are very excited at the prospect of helping Kroger bring new services and value to its customers and transform the food retail market in the U.S."

The e-commerce grocery sector has attracted a rising tide of investment in recent months, including retail giant Amazon.com Inc.'s $13.7 billion purchase of the Whole Foods Market grocery chain, the logistics service provider MonarchFx's launch of a food and beverage division, and system integrator Knapp's partnership with Boston-area e-grocery startupTakeoff Technologies.

Technology
  • Related Articles

    Takeoff Technologies expands grocery fulfillment deal with retailer Albertsons

    Cloud tools help retailers cope with new buying patterns as pandemic impacts linger

    Small trials can lead to big results with blockchain and AI, panel says

Ben Ames is Editor at Large and a Senior Editor at Supply Chain Quarterly?s sister publication, DC Velocity.

Recent Articles by Ben Ames

Forecast: AMR and AGV robot sales will soon bounce back from Covid-19 hit

Containers back up on Chinese docks as coronavirus triggers closures

Logistics providers cheer White House passage of USMCA

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • The 3PL industry: time to reset

  • Resiliency starts with supplier mapping

  • Freight market growth expected to slow in 2021

  • Retailers designing stores to support inventory and logistics work, not just shopping

  • Seizing the helm

Featured Video

6cabd6ef 64df 4460 bb11 e90c2bdea0a5

Identifying Intralogistics Solutions to Fit Your Operation: LinkedIn Live Ep. 4

Viewer Contributed
As technology evolves, the advantages of using semi- and fully automated solutions to increase productivity and address labor shortages are clear. However, before an organization jumps fully into automation, optimization is a key step that must happen first. Intralogistics solutions, such as Raymond’s iWAREHOUSE and...

FEATURED WHITE PAPERS

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

  • Shaping Up Last Mile Delivery to Surpass Customer Expectations

  • Finding the Right Transportation Management Partner

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing