Ocado Solutions provides the Ocado Smart Platform as a Service to retailers around the world. This platform will allow Kroger to assemble an order of around 50 items in six minutes with robotics in an automated warehouse instead of around 30 to 45 minutes with a Kroger employee picking them up in various areas of the store, a said Luke Jensen, CEO of Ocado Solution at the June 2019 launch for the Monroe site
Ocado is working to create similar partnerships with several grocery companies around the world, including Kroger.
An Ocado “shed” helps grocers achieve a higher degree of order fulfillment compared to the in-store experience, which can often find a grocer short of an item or completely, said Jensen. It also saves costs.
Kroger’s partnership with Ocado “will bring customers fresher food faster than ever before, accelerating our ability to deliver anything, anytime, anywhere,” said McMullen.
To exploreKroger sees his profits increase and his average salary
Sixty million households buy from Kroger each year and the scale of its digital business has grown rapidly, McMullen said during today’s earnings call. In 2020, the grocer had more than 1.3 billion interactions with his customers through his digital modalities, a 30% increase from last year, he said.
“Our meaningful reach allows us to significantly personalize the customer experience,” said McMullen.
In 2020, Kroger delivered nearly 11 million personalized recommendations per week, he said.
“When you look at that over the year, it’s over half a trillion offered personalized to customers in 2020,” McMullen said.
Kroger plans to open more Ocado hangars this year, McMullen said. The company has announced 10 of the 20 customer processing centers.
Ohio Governor Mike DeWine said in June 2019 that the state-of-the-art facility represents “the intersection of Ohio’s budding tech and food sectors and the next step in advancing experiments. purchase from Kroger customers ”.
TIMELINE: Kroger’s new automated warehouse in Monroe
May 2018: The partnership between Kroger and Ocado is announced, a nation’s first customer processing center known as the “hangar”.
November 2018: The two companies announced that America’s first automated warehouse will be located in Monroe. The total investment in the construction of the structure is $ 55 million.
December 2018: The Ohio Tax Credit Authority is voting to approve an 8-year 1.362% tax credit for the project, which is expected to create more than 400 jobs.
March 2019: Kroger buys nearly 100 acres along Ohio 63 from Monroe for $ 3.1 million
June 2019: Kroger and Ocado inaugurate on the project site.
3rd of March: The new “ hangar ” completes the inaugural order