Ocado Retail, the online supermarket joint venture between Ocado Group and Marks & Spencer, has announced that it will stop operations at its Hatfield customer fulfilment centre in the summer. The move comes as the company shifts to robotic customer fulfilment centres, which are more productive and have lower energy usage.
According to the company, the stoppage of operations at Hatfield will not affect the volume of orders fulfilled, and all current customer orders fulfilled from the site will be moved to other facilities around the UK.
CEO of Ocado Group and chairperson of Ocado Retail, Tim Steiner, said the company’s new and enhanced fulfilment centres and technologies would “drive a step change in customer experience and efficiency.”
The Hatfield facility, which is the oldest in the Ocado network, employs around 2,300 people. The company has started a consultation process with them to redeploy as many people as possible to other sites, primarily to the soon-to-be-opened Luton site.
Ocado said it expected further improvements in productivity and increased capacity for same-day deliveries with the help of new technologies. The company does not expect a material financial impact from the closure of the facility to its FY23 financial guidance.
Online retailers are shifting to robotic facilities because automation offers several benefits such as increased efficiency, accuracy, and cost-effectiveness.
Robots can work around the clock without taking breaks, reducing the time it takes to process orders and increasing the speed of delivery. Additionally, robots can perform repetitive tasks with a higher degree of accuracy than humans, reducing errors and improving overall quality.
Robotic facilities also require less physical space than traditional warehouses since robots can operate in a more compact and efficient manner. This allows retailers to save money on rent and other operational costs.
Overall, the use of robotics in online retail facilities can improve operational efficiency, reduce costs, and enhance the customer experience by enabling faster and more accurate order processing and delivery.
While the use of robotics in online retail facilities offers many benefits, there are also some potential disadvantages to consider:
Initial investment: The upfront cost of implementing robotic technology can be significant, and may require a significant investment in hardware, software, and infrastructure.
Maintenance costs: Robotic systems require regular maintenance, which can be expensive and time-consuming. This includes software updates, hardware repairs, and other routine maintenance tasks.
Limited flexibility: Once a robotic system is installed, it may be difficult to make changes or adaptations to the system, limiting the retailer’s ability to respond to changing market conditions or customer needs.
Lack of human touch: Robotic facilities can lack the personal touch and empathy that human workers bring to the job, potentially leading to a less satisfying customer experience.
Potential job loss: The use of robots can potentially lead to the displacement of human workers, which can be a significant concern for employees and their communities.
Overall, while the use of robotics in online retail facilities offers many benefits, it’s important to carefully weigh the potential advantages and disadvantages before making a decision to invest in this technology.
Workers at Amazon go on strike in Coventry this weekend over pay dispute
Leave a Reply