Photo: Business Wire
Kroger is automating away. The grocery giant, which has built its fulfillment warehouse system on a robotic foundation, will now deploy three autonomous box trucks to transport orders from a Customer Fulfillment Center (CFC) in Dallas to local stores for delivery or pickup.
The cold chain-capable trucks have been designed to transport ambient, frozen and refrigerated products. Autonomous vehicles are expected to increase Kroger’s “speed and responsiveness” in fulfilling online orders and reduce its middle-mile supply chain costs. Trucks will make deliveries to local Kroger stores multiple times daily, seven days per week.
Mike Baker, head of final mile for Kroger, said in a recorded video for the launch announcement, “We’re implementing consistent automated delivery runs; we run roughly 18 to 20 hours a day. Anytime a customer wants an order, we're there to try to deliver it to them. It's super important to us that we're repeatable, we're on time, and we deliver that fresh full service that they're looking for.”
Mr. Baker stressed the critical nature of making on-time deliveries and leveling up customer service. The use of autonomous trucks for middle mile deliveries, he said, speeds up the supply chain process and focuses Kroger’s attention even “more on the customer service side of things, which ultimately leads to a happier customer and repeat customer.”
“Kroger’s commitment to redefining service levels for its customers through innovative technology meant that our collaboration came together very quickly,” Gautam Narang, co-founder and CEO of the autonomous vehicle firm, Gatik, said in a statement. “We’re deeply familiar with operating our autonomous fleet within the Dallas ecosystem, and we’re very excited to bring that experience to support Kroger in its mission to reshape the future of goods delivery.”
Kroger, as Mr. Narang indicates, is not alone in its use of automated vehicles to improve middle-mile performance in the Dallas/Fort Worth market.
Sam’s Club last June said it was deploying automated box trucks to make deliveries of Georgia-Pacific paper goods to its 34 locations in the area. Six Class 6 trucks replaced the traditional Class 8 tractor-trailers used to make deliveries.
The Sam’s Club pilot project was part of parent company Walmart’s ongoing efforts to test autonomous vehicles for middle- and last-mile deliveries. The retailer has engaged with Gatik, Argo AI/Ford and Nuro on various pilots in recent years.
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