Coles has announced it has entered into an exclusive services agreement with British supermarket chain Ocado to bring its online grocery platform, automated single pick fulfilment technology and home delivery solution to Australia prior to the end of the 2023 financial year.
Under the agreement, Ocado will partner with Coles in Australia to launch an end-to-end online grocery shopping solution, including:
- A significantly enhanced customer experience, supported by Ocado’s entire end-to-end proprietary software applications and technology solutions required to operate a worldclass online grocery business, known as the Ocado Smart Platform (OSP), which will be available to Coles’ customers Australia-wide by the 2023 financial year;
- Two state-of-the-art automated customer fulfilment centres (CFCs), one located in each of metropolitan Melbourne and Sydney. Ocado will be responsible for the installation of the material handling equipment in the CFCs, including the provision of ongoing maintenance of the equipment; and
- Last-mile routing management technology to optimise delivery efficiency and customer service.
Migration to Ocado’s online platform and the development and construction of the CFCs is expected to be completed by the end of the 2023 financial year.
To ensure successful implementation of the project, Ocado has committed to a dedicated team to be based in Australia, both during the construction phase and then permanently for the ongoing maintenance of the facilities.
“Ocado is singularly focused on online grocery shopping, and as a result, has become the leading solution provider in the world. We are delighted to be partnering with them to make life easier for Coles’ customers here in Australia. Ocado’s ongoing investment and retail partnerships around the world will help us continue to improve our offer into the future,” Steven Cain, CEO, Coles said.