Ocado is set to further expand its distribution network in the UK with the opening of its first mini-CFC, in Bristol.
The facility for Ocado Retail, the new joint venture unit set up with Marks & Spencer earlier this year, is being built in an existing 150,000 sq. ft. warehouse and will be group’s sixth CFC when it goes live at the end of 2020 or early 2021. It will have the capacity to process over 30,000 orders per week compared to approximately 85,000 orders per week expected from its larger CFC 5 site, which is currently under construction in Purfleet.
Despite its smaller size, Ocado stressed that Bristol site will achieve productivity close to that of its standard facilities and will mean it can serve customers with a full grocery range direct from the one site.
The group outlined that the mini-sized CFCs can complement its standard-sized ones to build a fulfilment network, including in areas not suitable for larger CFCs. Ocado stated that this will deliver long-term network benefits, enabling all its partner retailers to reach more households, while catering to the growing range of shopping missions expected by online grocery customers.
Tim Steiner, Chief Executive of Ocado Group, commented: “The Ocado Smart Platform is constantly evolving as we innovate to adapt to changing customer needs. We can now deliver the best customer experience across a whole range of customer missions, through CFCs, mini-CFCs, and micro fulfilment centres.
“Ocado’s technology is dynamic and constantly improving, delivered through tried and tested solutions with proven and attractive economics. Our mission is to deliver the future of online shopping today, and we believe we are succeeding.”
NAM Implications:
- Ocado obviously headed towards UK global coverage.
- (with UK learnings applicable overseas)
- Best for suppliers to assume full coverage…
- …and assess implications and opportunities for your category…
- …vs current route to consumer.
