America’s largest grocery retailer Kroger has teamed up with world’s largest dedicated online grocery retailer Ocado to launch America’s second customer fulfillment center (CFC) in Groveland, Florida. Kroger has planned to open 20 CFCs the first of which is being constructed in Monroe, Ohio known as shed an automated warehouse facility with digital and robotic capabilities. The model of CFC is being replicated in Groveland and will continue in different cities across the United States.
Note: Submit your feedback at krogerfeedback.com to win free fuel points on kroger feedback customer satisfaction portal. Kroger plans to invest $55 million to build the CFC in Groveland, in an area of 375,000 square feet which is expected to generate 400 new jobs. The online grocery business has proved to be quite a difficult one as compared to others as most of the inventory is perishable. Orders contain some cold, some frozen and some room-temperature products and if they are not properly managed, they can easily be spoiled.
How Kroger Is Using Technology In Their Business
The new CFCs will have a complete specialized robot that will transport and pick up bins of groceries and will help human workers to be more efficient in processing overall orders. This will in-turn make the complete system more efficient and faster and help in increasing the sales and profits for the company. The chairman and CEO Kroger said,” There is a high demand for Kroger products and by partnering with Ocado, customers can get anything, anytime, anywhere with advanced robotic technology and creative solutions”.
While referring to this partnership CEO of Ocado group said,” Ocado Group is delighted to bring Ocado’s world-class technology in such an important market. This partnership will bring exciting opportunities for engineers and technologists to work with cutting-edge automation and robotics of Ocado.”
How Their Partnership Can Turn Tables For Kroger
For the past few years, Kroger has seen a steep fall in their shares and profits as compared to their rivals. So, this partnership with Ocado can turn out to be fruitful for both these groups and can bring Kroger back in the game against its rival companies. This partnership of Kroger and Ocado to bring new high-tech automated CFCs is an innovative and new approach in the field of the online grocery business. Time and again we have seen technology transforming our lives and society and if all goes according to their plan then this partnership can generate new jobs as well as introduce a new form of grocery shopping that will include robotics along with humans to make an efficient and productive model for the others to use in the future.