Ocado Group has unveiled its first technology deal outside of grocery with Canadian healthcare specialist McKesson.
CEO Tim Steiner said the move was “a new and exciting milestone”.
“Our technology is ideally suited to supply chains that require dense storage, highly accurate inventory management and secure stock control. lt has been proven over 20 years in one
of the most complex supply chain environments, online grocery, and we’re now bringing our experience and IP to more sectors,” he said.
The tech giant will provide warehouse technology and AI-powered software applications to operate the technology to McKesson, which is Canada’s largest pharmaceutical distributor.
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Ocado will receive upfront fees during the construction process with the final payment upon final installation. It will also be paid an annual fee for its services.
The group assured that it was a “capital light deal” and will be cash neutral throughout the development phase. It expects it to be cash and EBITDA
positive in its 2025 financial year.
The tech firm outsources its cutting edge technology to a raft of supermarkets around the world, including Morrisons in the UK, Kroger in the US and Coles in Australia. It also operates the Ocado Retail joint venture with M&S.
