CEVA Logistics, a global leader in third-party logistics, has renewed its contract with Ocado Retail, the world’s largest dedicated online supermarket. The extended agreement strengthens a long-standing partnership and supports Ocado Retail’s continued expansion across the UK.
Under the renewed contract, CEVA will continue operating as a national consolidation centre for Ocado Retail. This includes managing the bulk storage of ambient goods and distributing stock to all seven of Ocado’s Customer Fulfilment Centres (CFCs), which handle end-customer order dispatch.
The volume of goods handled by CEVA on behalf of Ocado Retail has increased significantly year-on-year. In response, CEVA has reconfigured its warehouse at Kettering to accommodate changes in pallet configurations and SKU profiles. These adjustments have substantially increased storage capacity while maintaining high service standards and uninterrupted operations.
Operational Transformation Improves Efficiency and Scalability
As part of the contract renewal, CEVA delivered a comprehensive operational optimisation programme. This included the implementation of a redesigned warehouse management system (WMS), a new pick-face layout, improved replenishment processes and updated put-away logic. Together, these enhancements have increased outbound efficiency while maintaining full service continuity during the transition.
The upgraded Kettering facility now provides Ocado Retail with improved stock cover, helping to stabilise and increase product availability for customers. It also enables the business to better manage peak trading periods throughout the year.
CEVA’s role as a consolidation hub supports Ocado Retail’s wider logistics network by streamlining operations across its fulfilment centres. This ensures a consistent flow of products, improved efficiency and the scalability required to meet growing consumer demand.
Tim Walker, Supply Chain Director at Ocado Retail, said: “We trust CEVA Logistics to support our growth, consistently adapting to our evolving operational requirements. The team’s ability to implement major system and layout changes while maintaining service has supported in improving efficiency and helped ensure product availability.”
Mike Weaver, Managing Director of Contract Logistics at CEVA Logistics, added: “This contract renewal reflects the tangible value delivered through our responsive logistics solutions. By combining operational excellence, continuous improvement and scalable infrastructure, we enable Ocado Retail to meet rising consumer demand. We look forward to further developing this successful partnership.”
With demand for online grocery services continuing to rise in the UK, the renewed partnership positions both companies to enhance efficiency, improve availability and scale operations effectively in a competitive market.
