The Kroger Co. has revealed the location of its newest and smallest automated fulfillment center near Detroit, which the grocer teased in June. The 135,000-square-foot facility powered by U.K. retailer Ocado is a fraction of the size of previously announced locations that measure around 350,000 square feet and will be located adjacent to an existing Kroger distribution center.
“We continue to invest in and constantly improve our e-commerce capabilities, focusing on cost-effective solutions. Our partnership with Ocado is an essential part of our evolving seamless ecosystem.” said Robert Clark, Kroger’s SVP of supply chain, manufacturing and sourcing. “In Michigan, we are engineering a smaller model for the region, leveraging advanced robotics technology and creative solutions to redefine the customer experience and respond to the growing demand for grocery e-commerce services.”
This CFC – an automated warehouse facility with digital and robotic capabilities – will be used to serve customers in Michigan, northern Ohio and Indiana. This is all part of Kroger’s plan to design a flexible distribution network, combining disaggregated demand and the proximity of its stores and facilities that vary in design and size.Progressivegrocer