Morrisons is to process a greater share of its online volume through Ocado Group’s Dordon Customer Fulfilment Centre (CFC) and with the tech company’s AI-powered in-store fulfilment solution.

However, the move will see Morrisons, which has partnered with Ocado since May 2013, gradually cease deliveries from the firm’s Erith CFC.

The technology solutions firm, which also owns a 50% share in online supermarket Ocado Retail alongside M&S, said the decision now opens “an attractive option” to provide Ocado Retail with extra network capacity over the near term as it approaches full capacity in its current network.

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Morrisons chief executive Rami Baitiéh said: “We have a successful partnership with Ocado and we value their expertise and their technology highly. As our online business continues to grow we have decided to process a greater share of our online volume through the Dordon CFC and with in-store fulfilment – which gives our customers full access to our unique Market Street offer.”

He confirmed that Morrisons.com will “continue to service every postcode in England, Wales and Scotland, with no impact to customers.”

Ocado Group CEO Tim Steiner added: “With our world-leading technology, Ocado Retail and Morrisons offer amazing propositions in the UK online grocery market. As Ocado Retail moves towards full utilisation of existing capacity, this decision enables a helpful option to provide it with further short-term growth, without an expectation for additional capex.

“As Morrisons reduce their operations at Erith and build their volumes in other parts of the network we are working with them to ensure seamless continuity of service to their customers and to continue strong market share growth across the UK market with the Ocado Smart Platform.”