A 300,000 square foot, four-storey, state-of-the-art warehouse at Hatfield for online grocer Ocado is being built using BIW Technologies' web-based supply chain management system, BIW Information Channel. Design work undertaken in Spain relating to some of the building's internal systems, plus design information concerning Ocado's delivery vehicles, is also being managed using BIW's technology. Ocado, the revolutionary new online grocer is being launched in partnership with Waitrose. Ocado, the newest entry in the online grocery market, will offer the quality and value for which Waitrose is renowned alongside reliable service and convenient delivery times from a company dedicated to home delivery. The John Lewis Partnership has invested £46m in Ocado which has the exclusive right to use the Waitrose brand and is set to become a major competitor to existing internet grocers such as Tesco and Sainsbury's. The Hatfield facility will have the capacity to process the same amount of groceries as 20 large supermarkets making it the largest food distribution warehouse of its type in the world. The multi-million pound construction contract, with Carillion as main contractor, is scheduled for completion later this year. BIW Information Channel enables all the project data to be available to every team member through a unique project-specific website. Users have access to information such as drawings, photographs, comments, team member details and even virtual reality renditions, all viewed and sent securely over the internet. The Hatfield warehouse includes substantial mechanical and electrical provisions, including automatic material-handling systems and refrigeration systems for a freezer, chilled store and fresh produce store. "The material-handling automation is being designed by Spain-based specialist Thyssen Ingenieria Sistemas," says Ocado logistics manager Ric Morrey, "and BIW Information Channel has helped Thyssen designers to integrate their work with that of other project team members. Regardless of location, users can access and comment upon drawings and other documents online; we find queries get resolved very quickly, and the ability to support team members working in widely dispersed offices has proved to be of real benefit." "Our delivery vehicles are being designed by Paneltex and they also have access to the Channel, ensuring that the interfaces with the warehouse's material-handling system are exactly right," adds Morrey. Colin Smith, chief executive of BIW Technologies, said: "The significance of our appointment on this phenomenal project is not confined to the building itself. After completion, BIW Information Channel will be an integral tool in ongoing operation and maintenance providing Ocado with a structured set of data on each element of the building. Maintenance contractors, for example, will be able to see what has gone into the building and why. New data can be added to give complete traceability throughout the life cycle of the building." For further information contact:
Paul Wilkinson, Head of Corporate Communications - 0845 1300 800 or mobile 07788 445920
Ocado: Claire Harper - 01442 898500
Notes to Editors: BIW Technologies' project collaboration systems were first employed in 1998 on UK construction projects for Sainsbury. The customer list now includes Capital One Bank, housebuilder Crest Nicholson, Marks & Spencer, Manchester Airport, the Welsh Development Agency, the Wellcome Trust and Asda. As the technology is adopted by each client's supply chain, BIW's Information Channel user base has grown rapidly. At the end of 2001, it was being used by over 10,900 people from more than 1600 companies working on some 520 UK projects. BIW Information Channel is a sophisticated web-based supply chain integration system, originally designed specifically for construction projects. Each client is provided with a unique project-specific website created around a knowledge database. Using this, all data can be made available to every project team member - from the earliest concepts and specifications, through detailed design, buildability studies, pre-fabrication, construction, maintenance, operation and improvement, to the eventual demolition or dismantling of the facility.
Ocado, formerly known as LM Solutions, was founded in January 2000 by three ex-Goldman Sachs bankers, Jonathan Faiman, Jason Gissing and Tim Steiner. They were joined in April 2000 by Roger Whiteside and Nigel Robertson, former directors in the Marks & Spencer food division, and Robert Gorrie, former director of major logistics company TDG. In July 2000, the John Lewis Partnership (JLP) made an initial investment of £35m cash in Ocado and granted the exclusive right to use the Waitrose brand, its own label products, its purchasing power and its supply chain. In exchange for the capital commitment and these other benefits, JLP established a 40% equity share in the business. In June 2001, UBS announced a major investment of £20m in Ocado establishing a 10% stake and thereby valuing the business at close to £200m. At the same time, the John Lewis Partnership announced a further £11m investment alongside UBS to maintain its 40% stake in Ocado. Ocado will operate a dedicated e-grocery service from regional distribution facilities, targeting areas with high population density across the UK. Ocado's new service will extend the Waitrose product offering beyond its heartland in the South East and will complement the WAITROSEdeliver store-based service which will service principally rural areas.
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