Kroger places order for new Ocado automated technologies

(Sharecast News) - US grocery giant Kroger ordered two of Ocado's newest technology solutions for its existing and future customer fulfilment centres. According to Ocado boss Tim Steiner, the solutions came amid a backdrop of "significant" pressures on supply chains to manage higher volumes and increased complexity in the face of headwinds from labour costs and availability.

"Today marks another exciting milestone in our partnership with Kroger," Steiner said.

"Our current CFCs are already helping to deliver a game-changing quality of service to their customers across the USA. We are excited for these latest technologies to further enhance that proposition, as well as the efficiency of Kroger's operations in live and future CFCs."

The new automation solutions included Ocado's On-Grid Robotic Pick and Automated Frameload.

Ocado said the innovations would allow Kroger to lower its costs further and boost its already market-leading customer proposition.

Japan's AEON had recently announced a decision to retrofit Ocado's OGRP technology into its operations, with OGRP already being rolled out at Ocado's UK CFCs.

When fully operational, OGRP was expected to pick over 70% of an extensive online grocery range.