Kroger opens first Ocado fulfillment center, strengthens digital presence in the US

US grocery giant Kroger has launched its first Ocado automated online grocery warehouse ( CFC ) in Monroe, Ohio , one of 20 warehouses planned to be developed in the US in partnership with the UK e-grocery specialist .

The 375,000-square-foot facility, located in Monroe, a city north of Cincinnati, is capable of shipping thousands of popular grocery products and can fulfill tens of thousands of delivery orders each day, according to Kroger. The facility can also support fulfillment of pickup orders.

Kroger said the CFC is backed by grocery e-commerce company Ocado Group and the new facility will also feature vertical integration , machine learning and robotics technology, and provide affordable, friendly and fast fresh food delivery services.

The Monroe CFC uses artificial intelligence, advanced robotics and automation to provide more seamless and efficient fulfillment, picking and delivery of Kroger online grocery orders. Inside , more than 1,000 robots with product boxes and ready-made customer orders fly on a huge 3D grid (called a "hive") that is managed by an air traffic control system.

When the time for an order to be delivered approaches, the robot retrieves the product from The Hive and brings it to a sorting station where the items are sorted for delivery. Algorithms control the sorting and sorting process to ensure that the products are packaged intelligently, fragile items are on top, and bags are evenly weighed.

Next, the packaged orders are loaded into temperature-controlled Kroger delivery vehicles, which can hold up to 20 orders. Machine learning algorithms weigh factors such as road conditions and fuel efficiency to optimize delivery routes. Each CFC has a maximum delivery radius of 90 miles.

Shoppers can place orders through Kroger.com or the Kroger mobile app. In markets using CFC services, Kroger said customers will have their groceries delivered by "knowledgeable" Kroger delivery associates. The company plans to set customer service levels as "industry-leading," with delivery associates ensuring order freshness and satisfaction, managing order changes, and informing customers of loyalty membership benefits, such as coupons .

Kroger's chairman said that 2020 is a crucial year for grocery e-commerce. Kroger's digital business will exceed $10 billion, and digital sales growth will reach a record 116%. We will continue to strive to expand the speed of digital business development and ensure that Kroger becomes one of the leading e-commerce platforms and companies in the United States .

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