Ocado may have started out in 2000 as an online grocer, but it is now one of the world's most innovative technology companies. The Ocado Smart Platform is an end-to-end e-commerce solution that uses artificial intelligence, machine learning, and other Industry 4.0 technologies to enhance operations and the customer experience.

1. The Amazing Ways Ocado
And Tech To Transform
Uses Artificial Intelligence
The Grocery Industry

2. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Title
Text
IntroductionIntroduction
Ocado may have started out in 2000 as an online grocer, but it is now one of the world's
most innovative technology companies. The Ocado Smart Platform is an end-to-end e-
commerce solution that uses artificial intelligence, machine learning, and other Industry
4.0 technologies to enhance operations and the customer experience.
While many know UK company Ocado as an online grocery retailer, it's really one of the
most innovative tech companies in the world. Ocado was founded in 2000 as an entirely
online experience and therefore never had a brick-and-mortar store to serve its
customers, who number 580,000 each day.
The Amazing Ways Ocado Uses Artificial
Intelligence And Tech To Transform The Grocery
Industry

3. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Title
Text
IntroductionIntroduction
Its technology expertise came about out of necessity as it began to build the software
and hardware it needed to be efficient, productive, and competitive. Today, Ocado uses
artificial intelligence (AI) and machine learning in many ways throughout its business
The Amazing Ways Ocado Uses Artificial
Intelligence And Tech To Transform The Grocery
Industry

4. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
From Online Retailer to Ocado Technology
Since 2000, Ocado tried to piece together the technology they needed to succeed by
purchasing products off the shelf. They quickly realized these off-the-shelf solutions
weren’t suitable for the unique demands of an online grocery, so they set out to build the
hardware and software they needed. Today, the Ocado Smart Platform runs end-to-end e-
commerce and is being sold to other brick-and-mortar grocery retailers such as Canadian
grocer Sobey’s, French retailer Groupe Casino, Aeon in Japan, Kroger in the United States,
ICA in Sweden, and others around the world.
Ocado Technology is helping to provide software as a service and hardware to help other
grocers operate profitably and sustainably online. Ocado Technology has led the industry
in innovation for years, from launching the first grocery app in 2009 to being the first UK
supermarket to have an Alexa app.

5. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Automated warehouses
Ocado’s warehouses are fully automated. The company’s warehouses illustrate the power
of Industry 4.0, where technology trends such as the Internet of Things, robotics, big data,
machine learning, and artificial intelligence are at work every day, making Ocado's
operations streamlined and efficient—in just 5 minutes robotics can complete 50,000
orders. The choreography of the robots—a swarm—is something to behold as they
navigate around warehouses the size of several football fields, pick up bins and deliver
them to pick stations to complete customer orders.
Ocado made this system completely scalable to accommodate the evolving needs of
online grocers during changing seasons, promotions, and events such as a global
pandemic. This robotic workforce is powered by big data and artificial intelligence and
becomes better through machine learning. Machine learning determines the traffic flow of
the robots through the warehouse to prevent collisions and to optimize efforts, calculates
the precise placement of bins for maximum efficiency, and also monitors the health and
maintenance needs of the robots to reduce any downtime. Artificial intelligence also helps
the system understand what products are in stock through real-time availability, so they
are able to give customers what they expect to receive.

6. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Reduce food waste
It is estimated by the Food and Agriculture Organization of the United Nations that we
waste around 1.3 billion tons of food each year on earth. If we could stop the waste, there
would be enough food to feed all the world's hungry and even have food leftover.
Technology could help us solve the world hunger problem, and Ocado might just be
leading the way to a solution. Ocado uses machine learning, artificial intelligence, and data
analytics to slash its food waste to just losing 1 in 6,000 produce items. The Ocado Smart
Platform determines the food customers want and need and adjusts orders from suppliers
accordingly.
The company's platform assesses 20 million forecasts each day to maximize freshness and
availability while reducing overstock and waste. Additionally, the machines help determine
the optimal time for discounts to push out all inventory.
Artificial intelligence and machine learning also help reduce food waste by ensuring that
products are stored or delivered in a way and at temperatures that reduce the likelihood
of spoilage. It donates produce to those in need that are only a few days away from
expiring. Machine learning algorithms help the company effectively monitor and manage
this donation effort.

7. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Better customer service
As you might be able to ascertain, customer service is a priority for Ocado, and having the
products customers want available and fresh, greater personalization, and smarter product
recommendations are certainly ways to create a stellar customer experience. While
customer interaction isn't the same as it would be in a brick-and-mortar store, customers
do interact with Ocado delivery drivers whose delivery routes are constantly evolving as AI
determines how to circumnavigate the city to avoid traffic and other delays or when they
interact with Ocado's contact centers via a phone call or email. These are also areas where
Ocado puts technology to work.
At Ocado’s contact centers, they allow customers to contact the company in a variety of
ways (email, social media, phone call). But, this isn’t what sets its customer service apart
because most companies who prioritize the customer experience do the same. Ocado
differentiates its customer service experience by applying machine learning and natural
language processing algorithms to quickly categorize customer communications to
prioritize the message and get it to the right team to solve the issue as quickly as possible.

8. © 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Combat fraud
Another development out of Ocado Technology is what it claims to be the world's first AI-
based fraud detection system for online grocery purchases. The advanced machine
learning algorithm has already improved fraud detection by a factor of 15.
Ocado continues to innovate to use technology, including artificial intelligence and
machine learning, to optimize warehouses, reduce food waste, improve customer
experience, and combat fraud. If it's not already there, expect the Ocado Smart Platform to
help support the online operations of a grocer near you very soon.
AI is reshaping businesses of all shapes and sizes across all industries. Discover how to
prepare your organization for an AI-driven world in my book, The Intelligence Revolution:
Transforming Your Business With AI.

9. Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website
© 2020 Bernard Marr , Bernard Marr & Co. All rights reserved© 2017 Bernard Marr , Bernard Marr & Co. All rights reserved
© 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website

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