Much like Amazon, Ocado is making a move to digitally disrupt its market. Employing 1,200 developers, engineers, data scientists, and robotics engineers, it is clear that it is fast becoming a technology company. With partnerships in Canada and France too, it seems Ocado is no longer just a grocery retailer. Ocado’s share price and valuation have been boosted by a recent partnership agreement with US food giant, Kroger, which plans to use the UK company’s technology in 20 distribution centres. And with a second Smart Platform warehouse currently under construction – which will be three times the size of the one in Andover – Ocado is set to continue to dominate in online grocery distribution. Coupled with the proficiency of the robots, Ocado’s automated fulfilment solution can prepare 65,000 orders a week, making it extremely fast and efficient.Īll this has helped make Ocado the world’s largest online-only grocer. The grid offers a dense storage system that maximises space utilisation in the warehouse. They travel at four metres a second and can pick and pack a full customer order be in five minutes – many times faster than if done by humans. Running three million routing calculations a second, the system directs the robots around the grid. The grid houses 250,000 storage locations, and the robots pick crates from this grid and take them to stations where they are assembled by packers into the customer orders. The facility went live in December 2016 and features up to 1,100 robots working on a grid roughly the size of a football pitch. The OSP is an advanced storage and automated picking system used at one of the company’s customer fulfilment centres (CFCs) at Andover, in Hampshire. Whilst the Smart Platform seeks to revolutionise the grocery industry through the use of artificial intelligence, AmazonFresh is reshaping the consumer picking process by establishing itself as the online supermarket delivering fresh food at the customer’s convenience. This comes thanks to solutions such as AmazonFresh and the Ocado Smart Platform (OSP). Continuing our series of posts on logistics digital disruption, we turn attention now to disruption in the grocery market and how the buying experience is changing for consumers.
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