Morrisons has announced a strategic shift in its online operations, opting to increase its reliance on Ocado’s Dordon Customer Fulfilment Centre (CFC) and the company’s AI-driven in-store fulfilment solution.
Since its collaboration with Ocado began in May 2013, Morrisons has been utilising the technology company’s expertise to boost its online grocery service. This latest move will enable Morrisons to gradually phase out deliveries from Ocado’s Erith CFC, thereby consolidating operations at the Dordon facility.
Ocado, which owns a 50% stake in the online supermarket Ocado Retail alongside M&S, views this decision as an advantageous opportunity to expand its network capacity. The current network is nearing its limits, and the collaboration with Morrisons provides a vital short-term growth potential without the need for additional capital expenditure.
Rami Baitiéh, Chief Executive of Morrisons, expressed his confidence in Ocado’s technological capabilities. He emphasised that the partnership has been successful, underlining the value of Ocado’s technology for expanding Morrisons’ online business. Baitiéh assured customers that the service will remain uninterrupted across England, Wales, and Scotland, ensuring full access to Morrisons’ Market Street offerings.
Tim Steiner, CEO of Ocado Group, highlighted the role of their world-leading technology in delivering exceptional online grocery propositions in the UK. He noted that as Morrisons redirects its logistics focus towards Dordon, both companies are committed to maintaining seamless service continuity for their customers while achieving market growth with the Ocado Smart Platform.
This strategic change by Morrisons underscores its commitment to leveraging advanced technology to enhance its online presence and customer service, paving the way for future growth in the competitive UK grocery market.
