Ocado Retail, the joint venture between Ocado Group and M&S, has announced changes to its operations, including ending operations at its Hatfield Customer Fulfilment Centre (CFC), the oldest site in its network.
Opened in 2002, the company’s first automated fulfilment centre was a test bed for the Ocado operating model, which is now deployed worldwide with other retailers. However, the group noted that technological innovations in recent years mean its newer sites are more productive and energy-efficient.
Ocado stated that it did not expect any change to the volume of orders fulfilled due to the stoppage of operations at Hatfield. The 400k orders per week fulfilled from the site will be moved to the company’s “next-generation” facilities around the UK. This includes a nearby Luton CFC, which is scheduled to open later this year.
There are currently around 2,300 staff based in Hatfield, with Ocado saying it has now commenced a consultation process on the proposals, with it hoping to redeploy those affected to its other sites. The consultation is expected to close in the summer, with Hatfield operations planned to halt in line with the start of operations at the Luton site.
“As the online grocery channel grows, our new, enhanced fulfilment centres and technologies will drive a step change in customer experience and efficiency,” said Tim Steiner, CEO of Ocado Group and Chairman of Ocado Retail.
“With this capacity coming online, now is the right time for us to halt operations at our oldest facility at Hatfield and consider our future options for the site. Ocado.com customers will continue to enjoy the same outstanding standard of service throughout the region, which will further improve as the benefits of our new technologies are deployed across the network.”
NAM Implications:
- With a 12-mile journey from Hatfield to Luton…
- …moving to a new job location may be an option for some of the Hatfield team.
- Hopefully meaning a friction-free move to more effectiveness for Ocado/M&S customers…
