Ocado Intelligent Automation - Third-Party Logistics (3PL)

Third-Party Logistics

Scalable Automation That Meets Every Client’s Needs.

The 3PL sector is witnessing a surge in competition. Labor prices and shortages continue to rise along with increasing real estate and operational costs, all putting pressure on margins. Leading organizations are turning to automation to improve operational efficiency, take better advantage of high-value real estate and differentiate themselves in the marketplace.

Historically third-party logistics (3PL) companies have been able to rely on flexing labor across facilities to support natural or unplanned changes in operational demand. The increase in competition for labor is putting significant pressure on operating margins, especially for long-term client contracts and during peaks.

Operating in a diverse landscape catering to multiple clients demands adaptability and scalability. Winning logistics organizations are implementing automation to stabilize their labor challenges and outshine competitors. Ocado is uniquely positioned to help in that journey with flexible automation options—from our capital-and-infrastructure-light Chuck AMR solution to our flagship OSRS cubic storage solution, suited for applications demanding the highest throughput and storage density available.

OSRS’ minimal yet highly scalable footprint allows for efficient handling of diverse inventory types, supporting 3PLs in optimizing operations, meeting client demands, and ensuring precision in their supply chain. This scalability also enables OSRS to adapt to both natural and unplanned changes in operational demand, and to grow as client demands change.

Third-Party Logistics

Key Benefits

Key benefits of the Ocado Storage and Retrieval System (OSRS) to the third-party logistics industry.

Reliable, Sustained Peak Performance

Deliver ever-shorter cycle times and reduced order cut-off periods with OSRS’ predictable, continuous throughput

Intrinsic Product Slotting

Utilize smart stock ordering within the grid, as slower-moving SKUs move naturally towards the bottom of the grid while fast-moving SKUs rise to the top

Secure In-grid Storage

Store stock safely and securely in-grid, then buffer and sequence for automatic load balancing to external pack or value added services (VAS) stations as needed

Configurable Workstations

Accommodate both individual item and full case picking with our flexible OSRS pick workstations, designed to support a wide range of SKUs and handle multi-channel order profiles

Ultra-high Density Storage

Carry a far greater range of stock within the same occupied footprint. Compared to conventional pallet storage systems, OSRS requires significantly less aisle space

In-Grid Order Buffering

Unlock additional efficiencies in outbound sortation and dispatch processes by nesting delivery bins inside grid bins, with temporary order buffering to support customer order modifications

How does OSRS enable 3PL companies to meet the increasing and diverse expectations of customers such as faster delivery times, higher visibility and lower costs? OSRS facilitates faster delivery times by optimizing warehouse space through its ultra-high-density concurrent robot-on-grid design. This system enhances visibility by accurately tracking inventory, enabling 3PLs to provide real-time information to customers. Moreover, its space efficiency and operational streamlining contribute to cost reduction.

How does OSRS help 3PL providers to maintain or increase their profit margins? OSRS aids 3PL providers in maintaining or increasing profit margins by optimizing operational efficiency, reducing labor costs, enhancing space utilization, and streamlining processes—ultimately leading to increased productivity and improved margins.

How does OSRS use smart warehousing, robotics and AI to optimize 3PL operations? Robotics aid in material handling, while AI-driven algorithms within our robotic pick arms optimize inventory management and order fulfillment. This integration streamlines 3PL operations, enhancing efficiency and accuracy. Robotic Sort robots collaborate with humans, improving employee engagement and experience while increasing overall productivity. They’re capable of handling a range of merchandise securely yet delicately, including deformables such as polybagged items.

How does OSRS ensure 3PL warehouse capacity is maximized? By utilizing vertical cubic storage space efficiently, OSRS is able to maximize storage density and maintain high capacity in any 3PL warehouse, enabling customers to offer a diverse range of products. OSRS can easily be expanded as needed up to the maximum capacity of your warehouse.