Ocado must always ensure they are using the most

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Ocado must always ensure they are using the most advanced technology, in order toenhance the grocery picking process. Technology is used throughout; from the initial stage ofordering products online, to the final stage, where drivers use the quickest route to reacheach customer. Ocado use an automated system of cranes and conveyor belts to create‘zone-pick stations’ (Figure 6). These are 100-metre-long aisles where workers wait forcrates to arrive, which they then fill with an order. This combines machinery and humanactivity to create an efficient food packaging system. This reduces waste and time lags as itsaves walking between aisles to collect crates and food; rather, these are automaticallybrought to the workers. At one time in the warehouse there are about 3000 crates being filledwith food (Godwin, 2017). Ocado have successfully improved their design process throughadopting this new software.
1537162Figure 6:Ocado’s Automation system in CFCDeliverA company’s operational system is part of a larger network of suppliers and customers.Supply chain management considers the entire process, from its raw materials to the finalservice. Ocado’s downstream flow consists of external technological companies that supplytheir machinery and robots, and external suppliers who provide their food. Business’ need toensure their flow relationships with external companies are strong, to provide an efficientsupply network. Ocado have a large number of external suppliers which deliver products directly to theirCFC’s. All produce is kept in coloured crates in accordance with its temperaturerequirements. Ocado mainly receive produce from Waitrose, but have recently signedcontracts with other small suppliers. Through stocking a range of suppliers’ products, Ocadoensures their customers receive the best variety of products available. They also provide adelivery service for Morrison’s, giving them a competitive advantage over companies suchas Aldi, Asda and Lidl (Butler, 2016).Ocado’s machines and technological advice is provided by outside suppliers. CambridgeConsultants analyse Ocado’s technological warehouses and advise how to carry out theirdistributional operations more efficiently. They helped Ocado create the ‘Ocado Smartplatform’, which has utilised technology in a low-cost, efficient way. Ocado holds a patentover this system, and is now being commercialised and sold to other retailers in the UK andabroad. These machines were created by an external company, Tharsus, who workedalongside Ocado. Their expert engineers were able to design and build the robotic systemswhilst ensuring Ocado’s vision was implemented. Outsourcing this operation is the mosteffective and cost-efficient way of creating the machinery, as Tharsus are constantlydeveloping and updating software to meet Ocado’s demands. This Business-to-Business
1537162Supply Chain is crucial, as Tharsus have the correct skills and time to create robotic

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