- 10 May 2019
- Transport / Logistics Services
After the Andover fire, Ocado is suspending Morrisons online grocery operation at the Erith, SE London customer fulfilment centre (CFC) while it seeks extra capacity in its national network.
Morrisons is to return to the Erith CFC in early 2021, and will not incur any costs associated with the use of the CFC. It is also to get lower stock pick fees.
Morrison.com will continue fulfilling orders from Morrisons stores using Ocado’s store pick solution.
Both parties have agreed to a mutual relaxation of certain exclusivity provisions bringing Morrisons more in line with the terms agreed with existing international Ocado Solutions clients.
In the meantime, Ocado will investigate longer term steps to replace the lost capacity from the Andover CFC.
“We are pleased to be helping our partner in times of need after the recent fire. We will keep growing Morrisons.com for our customers and save some cost, returning to the Erith CFC when it is more mature,” said Morrisons chief executive officer, David Potts.
“Our new agreement allows us to have more than one digital partner, and opens the way for significant potential opportunities and partnerships in this important growth area for Morrisons.”
Ocado chief executive Tim Steiner said: “Morrisons is a valued partner of Ocado and we are glad that we have been able to come to an equitable and pragmatic agreement that is in the interests of both parties. We look forward to welcoming Morrisons back to Erith in February 2021″.