Micro-Fulfillment
The importance of micro-fulfillment in supply chain management.
Micro-fulfillment is a strategy that locates small warehouses and package sorting centers in dense urban areas closer to consumers to reduce delivery times. Compact warehouses and automation islands are created to ensure fast picking/packing/shipping operations. This is a more cost-effective way to meet next-day or even same-day delivery expectations than is possible in large regional distribution centers. Consumers today want fast and free delivery. However, the key to economical micro-fulfillment lies in the automated processes at the individual warehouse locations. Management.
Picking, packing, labeling, sorting, inventory, and shipment tracking are all process functions that can be automated for improved efficiency. More efficiency usually means higher profits. Even smaller warehouses and parcel sorting centers can benefit from this. Automated inventory management combined with automated picking and sorting results in faster with a lower error rate and less manual intervention. Reducing the number of personnel reduces labor costs and contributes to an economically lean operation. As an investment, automation solutions quickly pay for themselves in a micro-fulfillment facility.
Micro-fulfillment center solutions typically combine automation with small workstation solutions to process packages and other goods. Warehouses/parcel sorting centers are often limited in size. This is why automation solutions with a smaller footprint are often recommended.