Online grocery continues to evolve, with retailers now required to support a wide range of fulfilment needs, from scheduled orders to short lead-time and on-demand delivery.

Delivering this flexibility efficiently, while maintaining service and accuracy, is a central challenge for online grocery operations

At Ocado Group, 25 years of experience has taught us that there is no “one size fits all” solution. Rather, success comes from deploying solutions tailored to a retailer’s specific needs and operating environment. 

This philosophy is the foundation of the Ocado fulfilment ecosystem that covers the gamut from large-scale or micro automated Customer Fulfilment Centres (CFCs) through store-based automation to In-Store Fulfilment (ISF). 

What is In-Store Fulfilment?

In-Store Fulfilment is a key part of the fulfilment toolkit, enabling orders to be picked directly from a retailer’s existing stores or dark stores (a dedicated physical store, or area used solely for online-order fulfilment). By combining physical store networks with our In-store Fulfilment Software retailers are able to launch and scale online grocery volumes rapidly. 

Crucially, this allows retailers to use their existing store estate as a network of fulfilment hubs. It offers flexible fulfilment, supporting everything from single-order picking to batch picking across diverse retail environments. 

The OSP advantage: how it works

ISF software uses OSP to coordinate and optimise the picking process within a live retail environment. 

• AI-optimised picking: OSP translates incoming orders into efficient picking tasks, guiding staff through the most effective route around the store 
• Optimised picking routes: The software generates optimised pick paths to reduce unnecessary "up and down the aisle" journeys, helping colleagues locate products quickly and accurately 
• Industry-leading performance: OSP drives high levels of efficiency, with productivity reaching up to 300 units picked per hour in some operations 
• Intelligent handling: Advanced algorithms dynamically adjust workflows to ensure that fresh, prepared, and bulky items are handled appropriately and in a timely manner. 

In practice, retailers use In-Store Fulfilment to quickly expand online operations using their existing store networks, without the need for new infrastructure. It enables rapid scaling across locations, extends delivery reach into new or underserved areas, and supports a wide range of fulfilment missions, from scheduled orders to on-demand delivery. 

As part of a broader fulfilment ecosystem, ISF complements other solutions, allowing retailers to deploy the right model for different operational needs. 

The last word on In-Store Fulfilment

Online grocery fulfilment doesn't exist in a bubble. Customer expectations, product range,  volume, local labour costs, and catchment densities can vary widely between countries, regions, towns, villages and cities. Retailers need the agility to respond to these distinct local dynamics and to evolve their operations as demand, economics, and competition develop.

This is why Ocado’s flexible fulfilment strategy isn’t a, "one size fits all" approach. Our ecosystem ensures retailers can deploy the exact solution required for their specific market and stage of growth: 

• In-Store Fulfilment (ISF) serves a distinct manual and asset-light purpose. It is the optimal choice for lower-density catchments where (for instance) lower labour costs make automation less desirable, or when a retailer wants to trial new markets with minimal risk in terms of spend.
• Automated CFCs remain the gold standard for dense, high-volume markets, driving operational efficiency and market-leading economics where operations scale.
• Store-Based Automation (SBA) transforms local fulfillment. By condensing Ocado’s proven fulfilment tech into a compact, store-level set-up, SBA maximises existing store estate, combining high pick rates to provide ultra-fast, short-lead-time deliveries without disrupting the in-store experience.

Alongside automated CFCs and SBA, In-Store Fulfilment is a critical part of how Ocado enables our partners to scale and optimise their online grocery operations at pace, providing a fast, flexible way to serve customers directly from existing store networks while maintaining high levels of accuracy and service.

‍