Ocado launches new mini-CFC to increase capacity

Date : 04 March 2021

Rachel Sibson

Retail Analyst

Operations have started at Ocado’s new mini-Customer Fulfilment Centre (CFC) in Bristol, with capacity for over 30,000 orders per week.

Boosting capacity

The new CFC is a quarter of the size of Ocado’s Erith CFC at 150,000 sq ft. It has the capacity for more than 30,000 orders per week. Ocado said the Bristol CFC will open up more capacity for new and existing customers across the country. It will also offer local customers quicker delivery. By offering quicker deliveries, Ocado can cater for new missions including top-up and meal-for-tonight. These new missions will also lead to smaller orders, which will mean Ocado will have to make the supply chain more efficient.

According to Ocado Retail, it has been delivering approximately 374,000 orders per week. It also plans to launch CFCs in Purfleet (capacity for 85k orders/week) and Andover (60k orders/week) in Q4 2021. Once all three sites are operating, capacity for Ocado Retail will have increased by 40% compared to 2020.

A new component of the Smart Platform

The Ocado Smart Platform offers global partners a range of fulfilment formats including large CFCs and in-store fulfilment. The mini-CFC format will enable partners to serve denser areas with shorter delivery times, as well as rolling out automated fulfilment to wider areas.

Ocado Retail is set to launch a further mini-CFC in H1 2022 in Bicester. As part of the partnership with Kroger in the US, it is currently building a mini-CFC in Romulus, Michigan with plans to launch at a similar time.

Looking for more insight on Ocado?

Subscribers can read the Ocado Strategic Outlook report here, which answers the following key questions along with implications for your business:

  • How will Ocado Retail maintain its growth?
  • What’s the impact of the planned new capacity in the UK?
  • Why is the Ocado Smart Platform launching in these markets?
  • How efficient is the Smart Platform?
  • Can the Smart Platform stay ahead of the competition?