Ocado Group PLC has announced a significant development in its partnership with Kroger, a leading US grocery retailer. Kroger has placed an order for a wide range of new automated technologies to roll out in Customer Fulfilment Centres (CFCs) across its network. The implementation of Ocado's latest 'Re:imagined' technologies, including On-Grid Robotic Pick (OGRP) and Automated Frameload (AFL), is expected to bring new levels of efficiency and labor productivity to the Kroger Delivery network. These innovations aim to drive down the cost to serve from CFCs and enhance the customer proposition.
Ocado's global partners, including AEON in Japan, are also upgrading their distribution networks with Ocado's latest technologies. The On-Grid Robotic Pick technology is being retrofitted into existing operations, with the expectation that it will pick more than 70% of an extensive online grocery range at full capacity. Tim Steiner, CEO of Ocado Group, expressed excitement about the partnership with Kroger and the potential for these technologies to enhance the efficiency of Kroger's operations in live and future CFCs.
The On-Grid Robotic Pick (OGRP) is a robotic arm installed directly on the grid, enabling the picking and packing of tens of thousands of products into customer bags with precision and accuracy. Automated Frameload (AFL) automates the loading of prepared customer orders onto delivery frames ready for dispatch, without human touch. Ocado Group, a UK-based technology company, provides end-to-end online grocery fulfillment solutions to some of the world's largest grocery retailers and holds a 50% share of Ocado Retail Ltd in the UK in a Joint Venture with Marks & Spencer.
Ocado has spent two decades innovating for grocery online, investing in a wide technology estate that includes robotics, AI & machine learning, simulation, forecasting, and edge intelligence. This development marks an exciting milestone in the partnership between Ocado and Kroger, with the potential to revolutionize the efficiency and customer experience in grocery retail.