Morrisons enhances its online grocery operations by leveraging Ocado’s cutting-edge technology.
- The company will process more of its online volume through Ocado’s Dordon facility.
- Morrisons plans to phase out deliveries from the Erith center gradually.
- The change will provide Ocado Retail with additional network capacity.
- Both companies aim to ensure a seamless service for customers across the UK.
Morrisons is taking significant strides to improve its online grocery business by increasingly relying on Ocado Group’s advanced technology. The retailer will process a greater portion of its online orders through Ocado’s Dordon Customer Fulfilment Centre (CFC) and utilize Ocado’s AI-powered in-store fulfilment solution. This strategic move is expected to enhance efficiency and customer service.
As part of this evolution, Morrisons will gradually cease its operations at the Erith CFC, shifting focus to the more capable Dordon facility. This change reflects Morrisons’ ongoing partnership with Ocado, which began in May 2013, underscoring a commitment to innovation in fulfillment services.
Ocado, which holds a 50% stake in the online supermarket Ocado Retail with M&S, views this transition as an opportunity to expand its network capacity. CEO Tim Steiner remarked that the decision allows for “further short-term growth without an expectation for additional capex,” highlighting the potential for enhanced service delivery.
Rami Baitiéh, Morrisons’ chief executive, emphasized the value of the partnership with Ocado, noting their technology as pivotal in providing customers with comprehensive access to Morrisons’ unique offerings. He assured that the change would not impact service in terms of geographic coverage across England, Wales, and Scotland.
This development is not only about technological enhancement but also about strategic growth and ensuring continuity. Ocado and Morrisons aim to maintain seamless service as operations transition from Erith, fostering market share growth across the UK.
Morrisons’ embrace of Ocado’s technology marks a forward-thinking step in strengthening its online grocery services without compromising on customer satisfaction.
