Kroger and Ocado Announce New Region for High-Tech Fulfillment Center
CINCINNATI, OH - Kroger and Ocado continue to carve out a path for further expansion, as plans for an additional Customer Fulfillment Center (CFC) have been announced for the South region. The two partners are also collaborating on in-store fulfilment (ISF) capabilities with a planned rollout across Kroger stores beginning in 2021.
"Kroger continues to accelerate the expansion of our national network to redefine the customer experience," said Gabriel Arreaga, Chief Supply Chain Officer, Kroger. "Our partnership with Ocado is and will continue to be rooted in our ability to deliver a value-added customer-centric solution that brings fresh food to customers through our seamless ecosystem."
According to a press release, the new facility will measure 200,000 square feet. Currently, the exact location and construction dates of the new facility have yet to be announced, although they are scheduled to be revealed soon.
"In the long term, we know that winning online in grocery means having the best customer service, underpinned by the best operational economics," said Luke Jensen, CEO of Ocado Solutions. "In leveraging the wide range of Ocado fulfillment technologies, Kroger is accessing the best customer offering for online grocery in the world, proven in the U.K., one of most developed and competitive markets for grocery online."
The CFC model, which incorporates state-of-the-art automation and artificial intelligence (AI), will be used to expand Kroger’s products to a larger footprint.
Part of this growth plan includes investing and optimizing in-store fulfillment technology and processes. Kroger and Ocado are collaborating to leverage in-store fulfillment (ISF) capabilities in combination with the retailer’s technology and digital solutions.
"Kroger continues to accelerate the development and rollout of customer-centric technology and digital capabilities to build a seamless ecosystem that combines the best of the physical store experience with the digital experience," said Yael Cosset, Kroger's Chief Technology and Digital Officer. "Ocado's in-store fulfillment capabilities, leveraging AI, will further contribute to continuous improvement of the customer pickup experience."
As more word funnels down regarding Kroger's expansion in this sector, AndNowUKnow will continue to cover.