Ocado Intelligent Automation redefines warehouse labour with human-centric, scalable solutions

Ocado’s Intelligent Automation is shifting from replacement to collaboration, addressing labour shortages and improving efficiency through flexible, human-centred systems that blend robotics with workforce empowerment.

For Ocado Intelligent Automation (OIA), the evolving landscape of warehouse automation is less about a wholesale replacement of human workers with robots and more about redefining the synergy between human labour and technology. Jamie Spencer, Vice ...

President of Sales – EMEA for OIA, highlights the dual pressures underpinning this shift: not only technical advancements but the increasingly constrained availability of warehouse workers. “There’s such a vast challenge right now for a lot of businesses… Traditionally, there was a large pool of labour available to support operations through growth and seasonal demand, but those pools have become much smaller,” Spencer explained. “People’s interest in working in warehousing probably isn’t as attractive as some of the other roles they could do.”

This shrinking labour pool, paired with rising wages and tightening labour markets across Europe and beyond, has transformed automation from a discretionary investment into a strategic imperative. Companies can no longer rely on simply increasing headcount to meet surge demands; instead, they seek scalable automation solutions that deliver efficiency gains as part of a longer-term operational model. Spencer emphasises that flexibility is key, with OIA’s suite of automation tools designed to cater to a range of scales , from a few autonomous mobile robots (AMRs) to fully automated fulfilment centres , all orchestrated by a unified, intelligent software platform.

A defining characteristic of OIA’s approach is its philosophy of “robots as colleagues” rather than replacements. Spencer explained that their AMR systems, such as the “Chuck” fleet, work in tandem with human operators, enhancing productivity rather than reducing headcount. By minimising repetitive tasks like walking and lifting through robot assistance, these systems also incorporate gamification elements that incentivise workers with productivity bonuses , melding efficiency improvements with job enrichment. “If you can find technologies that empower people to earn more or be more efficient – and give them a little more fun through gamification – it can make the process much better,” Spencer said. This reflects a broader trend in warehouse automation that recognises the essential role of human workers in deploying, managing, and complementing robotic technologies.

Ocado’s deep roots in online grocery fulfilment have provided a rigorous testing ground for the development of such systems. The company’s robotic picking platform, OCADEX, represents a significant innovation in item picking, a traditionally challenging warehouse task due to the diversity of products handled. Unlike many robotic picking systems that require costly peripheral infrastructure such as conveyors and pick stations, OCADEX operates directly on Ocado’s storage grid, dramatically improving economic viability. Spencer noted that in their own UK fulfilment centre in Luton, OCADEX now handles nearly 40% of picking volumes. Having processed over one billion products across multiple sectors, the system’s adaptability ranges widely, from groceries to healthcare, cosmetics, fashion, and fast-moving consumer goods (FMCG).

The automation push is influenced as much by geographical factors as by cost and labour availability. Increasingly, companies must balance the cost of floor space with labour costs and mounting consumer expectations, which frequently demand same-day delivery and rapid, localised fulfilment. This dynamic is driving the growth of micro-fulfilment centres and dark stores, especially in urban markets across Europe, the Middle East, and the UK. OIA’s expertise in high-density grocery fulfilment gives it a competitive edge in deploying systems that can be situated close to customers and integrate diverse delivery models, including locker-based networks combined with home delivery options. Spencer highlights this flexibility: “Not every order can go to a locker, but combining those drops with home deliveries creates much more cohesive fulfilment.”

Central to OIA’s technological advantage is the use of data, digital twins, and AI-enabled simulations. Before implementation, OIA rigorously analyses customer fulfilment data to understand order patterns and behaviours, which then informs the AI-driven design of automation systems. Digital twin technology allows the company to model and test new software updates and innovations in a virtual environment before real-world deployment, ensuring continuous operational improvement without additional capital outlay. For example, at one facility, new software enhancements eliminated the need to increase the number of robots previously forecast, delivering efficiency gains purely through improved algorithms. This commitment to evolving system intelligence reduces risk and complexity for customers and assures ongoing scalability.

Trust in data privacy is also a foundational concern, particularly since Ocado’s retail operations coexist with OIA’s service to multiple competing clients. Spencer reiterated that OIA handles customer data under strict governance, including SOC 2 certification, allowing competing businesses to rely fully on Ocado’s integrity and security standards. Such trust is vital as collaboration and data-sharing escalate within industry ecosystems.

Beyond AMRs, OIA is broadening its focus toward integrated warehouse ecosystems that include case-handling and palletised solutions. Integration of autonomous mobile robots with automated packaging technologies, such as custom-cut box machinery, automatic baggers, and depalletizers, has been shown to cut fulfillment costs substantially while boosting capacity. Industry data indicates that pairing AMRs with custom-cut box technology can increase order capacity by 20%, while automated bagging technologies reduce packing time by up to 50%, lowering both errors and labour demands.

OIA’s technologies have found resonance not only in Europe but have gained traction in North America, where larger space availability permits even bigger, vertically integrated systems. The recent opening of OIA’s North American Solutions Hub in Dallas, Texas, underscores this expansion, providing supply chain leaders firsthand experience with OIA’s solutions, including its AMRs and OCADEX robotic arms operating in scale environments designed for facilities handling thousands of SKUs and order lines per day.

The sophistication of Ocado’s systems is epitomised by “The Hive,” their Customer Fulfilment Centres (CFCs) technology. A fleet of hundreds of robots operates across a 3D storage grid, managed by AI-driven “air traffic” control systems that coordinate robot movement up to ten times per second. Robots travel swiftly at speeds up to 4 meters per second, efficiently ferrying containers with up to 50-item orders within minutes. This automated orchestration dramatically reduces manual labour for picking and sorting, allowing human staff to focus on quality control and exceptions, thus accentuating the complementary nature of humans and robots in modern logistics.

As automation expands across sectors and geographies, OIA’s pragmatic ethos of flexibility, trust, and integration positions it as a leader in delivering scalable, human-centred intelligent automation. Jamie Spencer sums up this vision: “It’s not just about point-to-point solutions anymore. It’s about providing complete, integrated systems that help businesses scale sustainably.” This approach not only responds to the challenges of today’s labour market and consumer demands but anticipates the evolving future of warehouse fulfilment as a collaborative human-machine endeavour.

Source: Noah Wire Services