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Micro Fulfillment Center (MFC) Solutions

Micro Fulfillment is the concept of placing smaller fulfillment spaces in urban locations that are closer to the end customer. Micro Fulfillment Centers’ (MFCs) whole purpose is to make the order-to-delivery process more efficient and can be a great opportunity for retailers and e-tailers of many different sizes and verticals to cope with the online shopping boom. MFCs can occupy an existing space such as stockrooms; can be built inside a converted space such as brick-and-mortar stores, or be purpose-built with lower entry costs than a traditional distribution center.

Case Study

First use of robotics in Australian high-end retail market

Körber and Bollore Logistics partner to create an AMR solution for a new retail processing system. 28 AMRs were deployed in Bollore’s Sydney warehouse.

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The trends and challenges in fulfillment

In today’s eCommerce industry, we are seeing an increasing demand for same-day and next-day deliveries from the end customer. Complying with the rising consumer expectations for speed and pick up options is crucial to gain a competitive advantage. 

Also, mass urbanization has brought a concentration of customers in urban areas which presents an added challenge for traditional fulfillment centers. The standard distribution center has in average 300,000 square feet and it is often placed outside of cities, which makes deliveries costly and slower.

Key benefits
Increased agility

Smaller operations that are easier to manage, aligned with the possibility of employing high-tech solutions, result in an increase in productivity, flexibility, and agility. Also, MFCs allow for optimized fulfillment and faster deliveries by being close to the end costumer.

Cost-efficiency

MFCs have lower associated costs of real-estate management. The entry costs are also low due to the ability of repurposing existing spaces. Finally, delivery costs are also reduced due to the shortening of distances between the MFC and the final destination.

Customer experience

When optimized, MFCs can help you meet the demand for faster delivery times and different delivery options. Due to their central urban location, click-and-collect, curbside delivery, and same-day home delivery can be a reality you can provide to your end customer.

Resource conservation

MFCs allow for greener transport options and an efficient use of existing spaces. By having a shorter distance to cover and by employing delivery options such as bike, there are substantial environmental gains for your operation.

The Körber difference

With an optimized MFC you ensure all related benefits are a reality. MFCs are the ideal place to employ efficiency-boosting technology and Körber has the right solutions for a demand-proof operation across organizations of different sizes and verticals. 

Körber integrated solutions in Micro fulfillment provide you the agility to cope with seasonal demands, and the flexibility to fit in non-typical fulfillment environments, ultimately offering you the ability to deliver a premium customer experience.

Exploring Micro fulfillment options will give any retailer a head start on Amazon penetrating the retail market on a larger scale.

Nishan Wijemanne,
Managing Director at Körber Supply Chain APAC & Global Leader for AMR Solutions

Warehouse Management Systems (WMS)

Keep track of inventory across multiple locations in real time, determine the best location for fulfillment, and manage both carrier selection and costs with Körber WMS solutions that adapt to your business needs.

Autonomous Mobile Robots (AMR)

Pick products faster and more accurately, with flexible goods-to-person or person-to-goods processes supported with Automated Mobile Robots (AMRs). They fit into many compact existing spaces ultimately offering retailers the ability to deliver a premium customer experience.

Voice-Directed Work (VDW)

An easy-to-use, hands-free, eyes-free system increases overall picking accuracy and productivity. Voice solutions are easy to implement, and training time is reduced by at least 50%. Voice solutions offer efficient options for seasonal peaks and increasing demands, including renting equipment for seasonal workers that can be returned once your season is over.

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