SUPPLY CHAIN SOLUTIONS EXCLUSIVE INTERVIEW Our scale and use of software
algorithms leads to less waste compared to other supermarkets; their waste levels (three per cent) are four times greater than Ocado’s (0.7 per cent). We are currently looking to sell the Ocado Smart Platform as a solution to international bricks and mortar grocery retailers, giving them the ability to replicate our success in other parts of the world. In an increasingly competitive
marketplace, automated systems can make the difference between success and failure. Our CFCs remain pivotal to the profitability and future success of our online shopping and delivery services.
Right: The Ocado Smart Platform (OSP) robotic grid, showing how the crates navigate the centre
Many supermarkets currently run their online shopping service at a loss, but Ocado has demonstrated that online grocery can actually be a profitable and successful business with the use of highly automated systems and intelligent software. We have achieved profitability at an order level and we’ve invested that profit back into building and strengthening our platform and engineering know-how. The investment in our technology
has also enabled us to reach a number of milestones in the engineering industry and we have filed many patent applications, which we are extremely proud of. We’ve also collaborated with universities and research institutes to push the boundaries of what is possible in terms of robotics or battery technology.
HOW COULD THIS TECHNOLOGY BE ADAPTED TO OTHER ENVIRONMENTS? When we introduce ourselves to people in the world of engineering, it is not unusual that we have to explain what it is that we do. The Ocado name is well established as a grocery retailer and people know of our affiliation with Morrisons and Waitrose, but less is
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known about our growing engineering capabilities. Ocado Engineering will continue to support the way we change online grocery retail by developing new products for warehouse environments and beyond. The underlying technology powering
the Ocado Smart Platform robot hive is independent of the end application and can be used for other logistics applications. The system has been designed to be scalable according to business needs as well as available warehouse space.
Ocado Engineering
www.ocadoengineering.com
/ MATERIALSHANDLINGLOGISTICS
MATERIALS HANDLING & LOGISTICS | JULY/AUGUST 2017
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