Kroger distribution network expands to Oklahoma City, Oklahoma
“We are excited to expand Kroger’s distribution network to Oklahoma Citya new geography for our operations and an integral part of our strategy to double our digital sales and profitability by the end of 2023,” said Gabriel Arreaga, senior vice president and chief supply chain officer of Kroger. “This grocery delivery service is an innovative addition to the growing digital shopping experience offered to our customers. The hub-and-spoke facility will provide unparalleled, impeccable customer service and improve direct access to fresh food in areas hungry for the variety and value offered by Kroger.
“We are delighted to welcome the largest supermarket in the country to Oklahoma which will further showcase our state’s impressive distribution infrastructure,” Governor said. Kevin Stitt. “Kroger’s new e-commerce model is innovative, creates new fresh grocery opportunities for the Greater Oklahoma City region and is leading the way to improving the health and quality of life of Oklahomans.”
The 50,000 square foot spoke facility located at 8801 North I-35 Service Rd. in Oklahoma City will work with the hub in Dallas, TX, serving as a last-mile transshipment location that effectively extends Kroger’s grocery delivery services and extends its reach to customers up to 200 miles from the hub. The facility is expected to become operational later this year and will employ up to 191 full-time associates.
“We are delighted to welcome Kroger to the Oklahoma City said Oklahoma City Mayor David Holt. “This is a real win-win that will provide more grocery shopping options for our citizens and good jobs for our community. We look forward to working with Kroger to ensure their success in Oklahoma City.”
Kroger Delivery Explained
The expansion into Oklahoma City represents an extension of a partnership between Kroger and Ocado, a global technology leader for grocery e-commerce. In 2018, the companies announced a collaboration to establish a delivery network that combines artificial intelligence, advanced robotics and automation in a bold new way, bringing first-of-its-kind technology in America. Chairman and CEO of Kroger Rodney McMullen said Kroger Delivery “supports the ongoing shift in grocery consumer behavior and elevates our position as one of America’s leading e-commerce companies.” Thanks to the delivery network, the company now serves customers in Floridafor example, without traditional physical stores.
“We continue to be pleased with the deployment of our fulfillment centers in Groveland, Florida and Monroe, Ohioboth exceeding internal expectations, and the opening of our newest facility in Forest Park, Georgia“, continued Arreaga. “We have experienced incredible Net Promoter Scores ™, and our customers tell us that they love our friendly, professionally trained drivers and their refrigerated delivery vans that bring the freshest food directly to the their door. We look forward to continuing to expand our fulfillment network and enter existing and new geographies through hub-and-spoke facilities.”
The delivery network relies on highly automated distribution centers. At central sites, more than 1,000 bots circle giant 3D grids, orchestrated by proprietary air traffic control systems in the unlicensed spectrum. The grid, known as The Beehive, contains bins with products and customer orders ready for delivery.
As customer orders approach their delivery times, the bots pick up products from The Beehive and are presented to pick stations for items to be sorted for delivery, an algorithm-driven process that ensures items are packaged intelligently. For example, fragile items are placed on top, bags are weighed evenly, and each order is optimized to fit in the fewest number of bags, reducing plastic usage.
After being packed, the groceries are loaded into a temperature-controlled delivery van, which can store up to 20 orders. Powerful machine learning algorithms optimize delivery routes, taking into account factors such as road conditions and optimum fuel efficiency. The vans can travel up to 90 miles with orders from the hub and hub-and-spoke facilities respectively to make deliveries. Spokesperson associates will deliver orders within their service area, adding postcodes as demand increases.
Kroger unveiled its Monroe, Ohio customer processing center April 2021his first, followed by the centers of Groveland, Florida and Forest Park, Georgia (Atlanta). the dallas the fulfillment center is expected to open this spring with additional customer fulfillment centers planned for California, Frederick, MD, Phoenix, AZ, Pleasant Prairie, WI, Romulus, MI (Detroit), as well as South Florida and the Northeast and West.
To download Kroger Delivery photography and video, visit here.
At Kroger Co. (NYSE: KR), we are Fresh for Everyone™ and dedicated to our purpose: Feeding the Human Spirit®. We are, in our family of companies, nearly half a million associates who serve more than 11 million customers daily through a seamless shopping experience under a variety of banner names. We are committed to building #ZeroZeroWaste Hunger communities by 2025. To learn more about us, visit our writing and investor relations site.
About Ocado Group
Ocado Group is a UK-based technology company admitted to trading on the London Stock Exchange (LSE: OCDO). It provides comprehensive online shopping fulfillment solutions to some of the world’s largest food retailers and owns a 50% share of Ocado Retail Ltd in the UK through a joint venture with Marks & Spencer. Ocado has spent two decades innovating for online grocery, investing in a broad area of technology that includes robotics, artificial intelligence and machine learning, simulation, forecasting and edge intelligence.
SOURCEThe Kroger Co.