Ocado.docx - Ocado Online Grocery 1 Ocado Online Grocery...

This preview shows page 1 - 4 out of 16 pages.

Ocado Online Grocery 1Ocado Online Grocery NameCourse:Professor’s Name:University:City (State):Date:
Ocado Online Grocery 2Ocado a 'retailer for the future' (2010). What is the future for Ocado after Morrison goes to bedwith Amazon?Ocado’s Operating Model Ocado sells groceries and other specialist and everyday products to consumers who place orders through the grocery’s’s convenient and easy to use interfaces. Ocado operates in way that, it brings groceries from suppliers and delivers them directly to consumers. This is facilitated by Ocado’s large warehouse operations involving customer fulfilment centers (CFCs). The customerfulfilment center is a place for receiving and holding of all stock so that customers can come and pick their orders. Ocado’s operating model is built on logistics skills and technology which makes it to be more effective than store-based real estate operating model. The company has reduced operating costs in its business through the use of several automated tasks that are manually undertaken in store-based retailing. Through the application of software and algorithmsor proprietary technology, Ocado has optimized its end-to-end operations starting with the grocery’s front-end user interfaces to the applied sophisticated routing software in optimizing thebusiness’ delivery routes. The combination of technology and automation has enabled Ocado to significantly lower or eliminate several costs incurred in retail operations of traditional grocery. The current delivery areas of Ocado cover over 70 percent of the United Kingdom population. The grocery fulfils orders from its centralized consumer fulfilment centers in Hertfordshire and Dordon, Hatfield, and Warwickshire. The grocery has also to opened its third consumer fulfilment center in Andover, Hampshire. This shows that Ocado intends to expand it coverage inthe UK. From the already established CFCs, Ocado delivers directly about 34 percent of orders
Ocado Online Grocery 3to local consumers. The remaining percentage is trunked to various spoke sites where the orders are delivery locally.Ocado’s operating model can be classified into two; retail operating model and platform operating model. Regarding the retail operating model, Ocado aims at operating a high quality service while keeping operation costs as minimum as possible to help in creating a virtuous cyclebetween investment, efficiency, innovation, and growth. This has been achieved through the combination of three key elements. – the application of proprietary technology, the automation ofseveral processes and the aggregation into single facilities. –in removing notable costs that are commonly incurred in store-based retailing. The grocery’s centralized approach provides way forthe aggregation of larger scale into single locations and it allows the investment of the grocery in automation to replace several tasks that are performed manually in store-based retailers. In

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture