Ocado suspends deliveries due to stockpiling

Ocado suspended its delivery service last week thanks to many of its customers stockpiling. There had been a spike in demand and the firm had to adjust its delivery offering.

In a statement, Melanie Smith, chief executive of Ocado Retail, said that the company had made the “decision to temporarily suspend access to Ocado.com for a few days in order to make some changes to [its] service.”

The spike in demand led to Ocado delivering to some 170,000 households nationwide over four days. The suspension was lifted on Saturday after changes to the website were made to account for supply chain issues on certain lines.

The situation Ocado faces is being replicated across every supermarket chain as stockpiling has led to shortages of many essentials. There have been a range of responses from the grocers, from giving priority to certain elements of society and NHS workers to setting limits on high demand SKUs. This is a demand-led supply chain crisis, showing the fragility of Just In Time delivery.