The Kroger Co. has launched a new automated customer fulfillment center, which combines vertical integration, machine learning, and robotics with affordable, friendly, and fast delivery service for fresh food, according to the retailer.
“Kroger is uniquely positioned to transform grocery e-commerce because of our innovative and knowledgeable delivery associates’ commitment to providing fresh food and delivering a rewarding customer experience,” said Rodney McMullen, Kroger’s chairman and CEO, in a statement. “Kroger delivery brings together the expertise of our team and the efficiency of technology to create an in-stock, fresh, and friendly experience for every customer, every time.”
The center, located in Monroe, Ohio, is powered by Ocado, which has partnered with Kroger since 2018. Within it, over 1,000 robots travel around giant 3D grids, piloted by proprietary air-traffic control systems. The grid, known as The Hive, contains totes with products and ready-to-deliver customer orders.
The customer fulfillment center will offer delivery to an area up to 90 miles from the hub location and significantly more territory when spoke locations are integrated. As customers’ orders near their delivery times, the bots retrieve products from The Hive and are presented at pick stations for items to be sorted for delivery, a process governed by algorithms that ensure items are intelligently packed.
After being packed, orders are loaded into a temperature-controlled Kroger Delivery van, which can store up to 20 orders. Powerful machine learning algorithms dynamically optimize delivery routes, considering factors like road conditions, and optimal fuel efficiency.
“The introduction of this customer fulfillment center marks a historic milestone for grocery retail in the U.S.,” said Tim Steiner, co-founder and CEO of Ocado Group, in a statement. “Since signing our partnership in 2018, Ocado and Kroger teams have worked in tight-knit collaboration to lay the foundation to advance their state-of-the-art fulfillment ecosystem across the country, supporting Kroger to reach customers anywhere with anything, at any time.
Another CFC is scheduled to open to customers in Groveland, Florida this spring. There are also plans to open CFCs in Dallas; Forest Park, Georgia; Frederick, Maryland; Phoenix; Pleasant Prairie, Wisconsin; and Romulus, Michigan. As the network expands, Kroger will announce additional locations.
“We’re excited to be building a distribution network that creates a more equitable food system by providing greater accessibility to fresh food through the power of innovation,” said Gabriel Arreaga, Kroger’s senior vice president and chief supply chain officer, in a statement. “Kroger delivery’s network of customer fulfillment centers will accelerate our e-commerce capabilities, focusing on more cost-effective supply chain and last-mile delivery solutions, seamless customer experiences, and new career opportunities.”
