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.
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.
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.
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.
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.
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.
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.