Executive summary
Kroger, a leading grocery retailer in the USA, sought a reliable supplier for suitable totes for its online grocery division. They chose Utz due to our proven expertise in manufacturing delivery totes for the Ocado system in the UK. Utz's know-how in creating totes with integrated shopping bags facilitated the approval process in the USA. Despite the challenges posed by the construction of Kroger's fulfillment center and the pandemic, Utz's efficient labeling assembly line and continuous support ensured the project's success. The North Carolina CFC, measuring 200,000 square feet, became operational within 24 months after the site broke ground and will employ up to 700 associates over the next few years.
The client
Kroger is a prominent grocery retailer in the USA, known for its extensive network of stores and commitment to providing high-quality products and services to its customers. The company has been expanding its online grocery division to meet the growing demand for convenient and efficient shopping experiences. At The Kroger Co. (NYSE: KR), they are Fresh for Everyone™ and dedicated to their purpose: To Feed the Human Spirit®. Across their family of companies, nearly half a million associates serve over 11 million customers daily through a seamless shopping experience under a variety of banner names.
The challenge
Kroger faced significant time and expectation pressure during the realization period of the project. With the fulfillment center still under construction, Kroger needed almost 90,000 Utz totes delivered from the UK and labeled in the USA. The central focus was on setting up smooth logistics while managing the additional challenges posed by the pandemic. Ocado is helping Kroger to establish a new high bar in the type of quality and service that U.S. grocery shoppers can receive online.
The solution
We provided Kroger with the necessary totes, leveraging their experience with the Ocado system. The totes were delivered from the UK and labeled efficiently in the USA, relieving Kroger of extra work. Our support extended beyond the initial delivery, with weekly video calls to ensure everything was implemented according to plan. This proactive communication and adherence to deadlines were crucial in navigating the uncertainties caused by the pandemic.
Implementation process
- Initial consultation: Kroger and Utz assessed the system requirements and objectives.
- Tote delivery and labeling: Utz delivered almost 90,000 totes from the UK and set up an efficient labeling assembly line in the USA.
- Continuous support: We provided ongoing support through weekly video calls, ensuring smooth implementation and adherence to defined checkpoints.
The North Carolina CFC - site visit
Results
- Efficient logistics: The rapid provision of labeled totes allowed Kroger to carry out test runs of the system in advance, enabling new sites to start earlier than planned.
- Proactive communication: Our willingness to communicate and adhere to deadlines helped Kroger navigate the challenges posed by the pandemic.
- Enhanced fulfillment: The labeled totes, including the bags required for delivery, facilitated smooth logistics and efficient order fulfillment.
Utz helps us to identify needs and offers us excellent solutions with new products or product enhancements. We look forward to a great partnership with equally great solutions from Utz!
Key takeaways
- Customizable and efficient: Utz's tote solutions are adaptable to specific client needs, helping Kroger meet both operational and logistical goals.
- Strong partnership: The collaboration between Kroger and Utz exemplifies the power of strategic partnerships in delivering tailored, high-performance solutions for the e-commerce sector.
