Ocado Group and Groupe Casino has secured an agreement to develop the Ocado Smart Platform (“OSP”) in France. The deal will see Ocado build a "state-of-the-art" automated warehouse across three seperate sies in France, integrating grid based and robotic technology.
Ocado has been focusing its operational efforts on developing its automation practices with its supply chain operations, with the UK retailer saying the scalable, modular end-to-end solution provided by the OSP is a unique answer to the opportunities and challenges posed by shifting offline/online trends in grocery.
The company will also look to optimise its best-in-class front-end web site functionality, last-mile routing management and big data, real time implementation. The agreement sets out plans for the immediate initiation of the development of a Customer Fulfilment Centre (“CFC”) using Ocado’s proprietary mechanical handling equipment (“MHE”) to serve the Greater Paris area, the Normandie and Hauts de France Regions. The build and launch is expected to take at least two years.
In consideration of the investments made by Ocado, of maintenance and of provision of technology, Groupe Casino will pay Ocado certain upfront fees upon signing, and during the development phase, then ongoing fees linked to its utilisation of capacity within the CFC and service criteria.
In addition to the initial CFC, Groupe Casino and Ocado will consider further development of other CFCs close to other large urban areas.
Jean-Charles Naouri, CEO of Groupe Casino, said: "Groupe Casino is pleased to announce the agreement with Ocado Group which will allow it to develop an integrated customer and logistics platform, considered the best in the market.
“This agreement is a major leap in terms of quality: 50,000 food items will be offered in the first stage to customers in the Greater Paris area with precise and speedy delivery at home and through a platform which makes it achievable to do this profitably. Groupe Casino is very proud to have sealed this deal with Ocado which will further strengthen the quality of service available to its customers, at the core of its commitments for 120 years.”
Tim Steiner, CEO of Ocado, said: "We are delighted that Groupe Casino has decided to partner with Ocado Solutions to grow and develop its online food business. We believe that the scalable, modular end-to-end solutions provided by the Ocado Smart Platform, will allow retailers such as Groupe Casino to build their online grocery offer in a way that is profitable and sustainable, creating value for customers, suppliers and shareholders.
“We continue to make investments to commercialise our proprietary platform and expect this deal to be one of many successful collaborations with leading retailers to use it the world over.”
Luke Jensen, CEO Ocado Solutions, said: “Groupe Casino is a successful multi-format, multi-banner and multi-channel business with topthree market positions in all the countries in which it trades. Its decision to adopt the Ocado Smart Platform to build and drive its online food business in France gives it a unique, innovative, and world-leading solution to the challenge of delivering groceries profitably online. We look forward to working closely with Groupe Casino going forward”