Kroger Invests in Ocado Robots for Fulfillment Centers

Kroger has placed a new order for automated technologies, including picking robots, from grocery technology company Ocado Group.

The latest development expands on the pair's ongoing partnership, with Kroger ordering additional technology solutions for its customer fulfillment centers.

According to a disclosure with the London Stock Exchange, Kroger’s order includes on-rail robots that autonomously pick items and automated frameload systems that send crates of orders to be dispatched.

Ocado said the order would enable Kroger to reduce costs in its fulfillment centers.

“Today marks another exciting milestone in our partnership with Kroger,” said Tim Steiner, Ocado Group’s CEO of Ocado Group. “Our current customer fulfillment centers 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 customer fulfillment centers."

Kroger and Ocado have been working together since 2018, when the grocery retailer initially committed to building 20 customer fulfillment centers across the country.

The partnership has since expanded to include in-store fulfillment solutions supporting Kroger's curbside pickup service.

Related:Grocery Tech Company Expands Automated Fulfillment Centers in Japan

According to Ocado, 16 fulfillment centers have been launched in various locations, including Kroger's hometown of Cincinnati, Ohio, as well as Groveland, Florida, Dallas, Texas and Denver, Colorado

Each fulfillment center houses Ocado’s Smart Platform (OSP), a combination of software solutions and on-rail robots that autonomously pick items to automate warehouse operations.

The system uses a fleet of robots to carry items to stations where orders are packed by humans or robotic arms. The software component optimizes various aspects of operations, from delivery vehicle loads to ordering on e-commerce sites.

This expansion of Ocado's partnership with Kroger follows the company's recent announcement of plans to expand its sites in Japan with retailer Aeon.

"We are delivering a step-change in warehouse automation and new levels of efficiency to our partners as global supply chains are under significant pressure to manage higher volumes and greater complexity, as well as challenges in labor cost and availability,” Steiner said.