Trends
Kroger orders Ocado’s new automation for warehouse efficiency
Ocado has received a significant order from its partner Kroger for an array of new automated technologies to be deployed in its warehouses. Kroger is set to adopt Ocado’s latest innovations across its operational network of customer fulfilment centres (CFCs) and in future CFCs.
Headline
Ocado has received a significant order from its partner Kroger for an array of new automated technologies to be deployed in its warehouses. Kroger is set to adopt Ocado’s latest innovations across its operational network of customer fulfilment centres (CFCs) and in future CFCs.
Context
OUR TAKE The recent announcement by Ocado, the UK-based online supermarket and technology company, that its US partner, Kroger, has placed an order for a range of new automation technologies not only demonstrates Ocado’s leadership in robotics, but also reflects Kroger’s commitment to pursuing supply chain innovation and optimising the customer experience. The move is a significant milestone for Ocado, especially after its Canadian partner, Sobeys, suspended its project to open a fourth robotic warehouse, and the news is a shot in the arm. Through this partnership, Ocado will provide Kroger with state-of-the-art automation solutions including On-Grid Robotic Pick (OGRP) and Automated Frameload (AFL), which will help Kroger to achieve greater operational efficiencies and labour productivity across its distribution network. –Elodie Qian, BTW reporter Ocado , the British online supermarket and tech giant, has received a significant order from its U.S. partner Kroger for an array of new automated technologies to be deployed in its warehouses. This comes as a positive development for Ocado, following a previous announcement that its Canadian partner Sobeys had halted the launch of a fourth robotic warehouse, which had caused a drop in Ocado’s share prices.
Evidence
Pending intelligence enrichment.
Analysis
Kroger is set to adopt Ocado’s latest innovations, including the On-Grid Robotic Pick (OGRP) and Automated Frameload (AFL), across its operational network of customer fulfilment centres (CFCs) and in future CFCs. Ocado has not disclosed the financial value of Kroger’s order. The OGRP is a robotic arm mounted on the warehouse grid, capable of picking over 70% of a wide online grocery range at full capacity, thereby streamlining the packing process into customer bags. The AFL, on the other hand, addresses the most physically demanding task in the warehouse by automating the loading of prepared customer orders onto delivery frames, ready for dispatch. These technological advancements are expected to enhance efficiency and labour productivity within Kroger’s delivery network. Despite a 45% year-on-year decrease in stock value, Ocado’s recent boost in annual guidance and CEO Tim Steiner’ s reassurance to investors have helped to partially recover the company’s shares. Steiner emphasised that the global shift towards online shopping is ongoing, reinforcing confidence in Ocado’s business model. Also read: Ocado says cash flow is improving despite robot warehouse delays
Key Points
- Ocado has received a significant order from its partner Kroger for an array of new automated technologies to be deployed in its warehouses.
- Kroger is set to adopt Ocado’s latest innovations across its operational network of customer fulfilment centres (CFCs) and in future CFCs.
Actions
Pending intelligence enrichment.
