Solutions "at the point of need!"
Mastering Micro-Fulfillment (MFC)
Faster order picking, happy customers, better margins, and an ROI you can live with is the prize that mastering micro (MFC) can deliver.
The Micro-Fulfillment market size will quadruple by 2030 to $16 billion. Powered by robotics, autonomous micro-fulfillment and routing is the solution that can provide sustainable delivery for the MFC market.
Mastering the Micro-Fulfilment Center: The Future of Retail
Amazon Robotics has begun advertising for specialists to lead the development of Amazon’s next-generation micro-fulfillment solutions. By serving customers “at the point of need,” as some job descriptions explain, Amazon will likely be able to fulfill orders quickly and with precision.
According to recent research, the Micro-Fulfillment market size will quadruple by 2030 to $16 billion. Powered by robotics, autonomous micro-fulfillment and routing is the solution that can provide sustainable delivery for the market.
Faster order picking, happy customers, better margins, and an ROI you can live with is the prize that mastering micro (MFC) can deliver.
But getting your e-fulfillment strategy just right is more critical than ever.
Reaching out to MFC pros like Addverb can help you find the most cost-effective solution to MFC order-filling expertise and making happy customers depend on you and come back for more.
Micro-fulfillment isn’t just the next big thing for Amazon; it’s also the next big thing for all of retail.
With Addverb as your strategist and deployment pro, you, unlike Amazon Robotics, will never have to hire anyone to lead the development of next-generation micro-fulfillment solutions. We’re already industry leaders. Our future depends on your future. Maybe we should meet soon.
Micro-fulfillment is emerging as a competitive approach to last-mile distribution.
These 5,000 to 20,000-square-foot warehouses are accessible to urban areas and packed with high-demand products. Proximity to the final consumer means fast home delivery and curbside pick-up. The beauty of the micro-fulfillment strategy is scalable, modular logistics that you can configure based on demand.
When it comes to micro-fulfillment, the “micro” part is relative. The smaller sizes offer big advantages. For example, smaller footprints are available near densely populated urban areas. However, tight spaces need an optimized strategy to maximize efficiency.
The primary challenges of eGrocery segment that the micro-fulfillment center commits to solve are picking time and last-mile delivery. Conventionally, it takes about 60 minutes to pick an eGrocery order which makes the segment an unprofitable burden for many grocers. The micro-fulfillment centers, on the other hand, cut picking time down to about six minutes. These micro-fulfillment centers can be installed in the existing setup of supermarkets, enabling a hyper-local option that eventually reduces the cost of last-mile delivery.
From a grocery perspective, the cost to build a supermarket today involves the cost of the land, building, infrastructure, and workforce which contributes to around 60% of the cost of goods sold on a year-on-year basis. On the other hand, it is estimated that the cost of building a micro- fulfillment center would cost less than half of that for the same amount of sales for the retailer. This makes the concept a lot more viable, thereby reducing the cost to serve considerably. Moreover, if planned with the right set of data with your MFC specialist, as a retailer, it is estimated that the inventory turnaround will be 3 times more than a typical retail store making the required impact on ROI.
Addverb’s comprehensive portfolio of Mobile Robots, ASRS, Picking Technologies, and Software helps warehouses increase their storage capacity, pick-and-sort at higher speeds, and improve their overall efficiency by up to 300%.