Kroger has announced plans to incorporate new technologies from Ocado Group into several of its operational and future automated customer fulfillment centers (CFCs). The technologies, On-Grid Robotic Pick and Automated Frameload, are designed to enhance efficiency and labor productivity. This development comes during a pause in the expansion of automated fulfillment centers, a joint venture between Kroger and Ocado.
Advanced Technologies to Boost E-commerce Fulfillment
The integration of these technologies aims to reduce Kroger’s service costs from CFCs, thereby improving the economics of their e-commerce fulfillment network. Ocado’s On-Grid Robotic Pick, a robotic arm installed on the automated fulfillment grid, is equipped with advanced machine vision, reinforcement learning, and sensing capabilities. It can accurately pack bags with items deposited by other bots operating on the grid.
The On-Grid Robotic Pick has already been introduced to distribution networks outside the U.S., and at full capacity, it can pick over 70% of an extensive online grocery range.
Ocado’s Automated Frameload technology automates the task of loading prepared customer orders onto delivery frames, eliminating the need for manual labor. The technology uses computer vision to examine the tote and the frame, understand their dimensions and shape, and align them, making real-time direction adjustments to push the tote in.
Kroger and Ocado’s Ongoing Collaboration
In 2018, Kroger and Ocado entered into an exclusive agreement to bring Ocado’s automated fulfillment capabilities to the U.S., aiming to enhance Kroger’s competitive edge in the growing e-commerce market. Kroger committed to opening 11 CFCs with Ocado by the end of 2022, with eight currently operational and three more planned.
Despite a slowdown in the rollout of new e-commerce sites with Ocado, the latest announcement of new technology integration indicates that Kroger’s collaboration with Ocado is far from over. The AI-Driven Robotics and automation trends are set to revolutionize the industry.
