Last updated on September 19th, 2022 at 09:46 am
Kansas City, Kansas-based Associated Wholesale Grocers (AWG), a cooperative food wholesaler to independently owned supermarkets, has signed on as a strategic retail partner with Takeoff Technologies. The Massachusetts-based tech company is transforming online grocery with its micro-fulfillment solution.
Takeoff’s micro-fulfillment centers are miniature, automated warehouses that use robots to fulfill online orders. Micro-fulfillment centers are small enough to fit inside the back of existing stores or operate as stand-alone facilities, and typically hold anywhere from 12,000 to 20,000 of the most popular products. They combine proximity to the end-shopper with the automation capabilities of a large warehouse – two major competitive advantages for grocery retailers who are looking to go online.
“AWG has been exploring emerging technologies to address the ever-changing retail landscape,” said Jeff Pedersen, EVP, chief sales and support officer for AWG. “The partnership between AWG and Takeoff Technologies represents a significant opportunity for AWG and its members to profitably grow online sales. AWG’s mission is to provide its member-retailers all the tools, products and services they need to compete favorably in all markets served, all at the lowest possible cost. This strategic partnership allows our members to stay ahead of the competition with a profitable expansion strategy and enhance customer convenience.”
According to research by Takeoff Technologies, micro-fulfillment centers increase productivity by up to 10 times through improved speed, accuracy and efficiency. By providing real-time information about inventory, robotic fulfillment can greatly reduce or even eliminate product substitutions.
“We are thrilled to be partnering with AWG, one of the top grocery cooperatives in the country,” said José V. Aguerrevere, co-founder and CEO of Takeoff. “Our hyperlocal, automated approach will strengthen their online offerings and pass the value along to their members.”
“Takeoff’s efficiency allows for increased speed and accuracy, without adding fees and premiums. It’s a win-win for grocers and shoppers,” added Max Pedró, co-founder and president of Takeoff.
Associated Wholesale Grocers Inc. is the nation’s largest cooperative food wholesaler to independently owned supermarkets, serving more than 1,000 member companies and over 3,100 locations throughout 28 states from eight full-line wholesale divisions. The consolidated sales for AWG are approximately $10 billion. In addition to its cooperative wholesale operations, the company operates subsidiary companies. Those provide related real estate and supermarket development services, print and digital marketing services, and health and beauty care, general merchandise, pharmaceutical, specialty foods, and natural and organic products.