Ocado Group has signed its first deal outside of the grocery retail sector for its automated fulfilment technology.
The group’s robotic warehouse system and software will be used at a site in Canada operated by pharmaceutical distributor McKesson.
The online supermarket and technology group noted that there was huge potential for it to expand beyond grocery, one of the most complex supply chains that has given it expertise to apply to other sectors.
Tim Steiner, CEO of Ocado Group, said: “Today represents a new and exciting milestone as we bring the amazing benefits of Ocado’s technology to the healthcare distribution and logistics sector. Our technology is ideally suited to supply chains that require dense storage, highly accurate inventory management and secure stock control.”
Ocado will receive upfront fees from McKesson during the construction process, with further payment upon final installation of its system. The British firm will also receive an ongoing annual fee related to the servicing and maintenance of the technology.
Ocado Group currently has technology deals with several grocery retailers around the world, including Kroger, Aeon, and Casino.
NAM Implications:
- Ocado is only approaching the end of the beginning…
- …in terms of application of its expertise.
- Only real issue is when it will decide it is being held back by retail fulfilment…
- …and hives off that division…
- …to focus on real opportunity.
