Micro Fulfillment
The importance of micro fulfillment in supply chain management.
Micro fulfillment is a strategy that places small-scale warehouse facilities and parcel sorting centers in densely populated urban locations closer to the consumer to improve delivery times. It creates dense storage and islands of automation to enhance quick pick/pack/ship operation. This is a less-costly way to meet next-day or same-day delivery expectations than is possible when using large regional distribution centers. And today's consumers demand fast, free delivery. The key to keeping micro fulfillment economical, however, lies in the automated processes at each warehouse location.
Picking, packaging, labeling, sortation, inventory, and tracking are all functions that can be automated to improve efficiencies. And more efficiency generally means better profits. Even smaller warehouses and parcel sorting centers can reap benefits. Automated inventory in conjunction with automated picking and sorting leads to faster fulfillment with fewer errors and less need for human intervention. Reduced need for staffing lowers labor costs and helps keep the facility Lean. As an investment, automation solutions at a micro fulfillment facility quickly pay for themselves.
Micro fulfillment center solutions typically add automation, in combination with small workstations, to manage parcels and products. The warehouses/parcel sorting centers are often limited in size. For this reason, automation products with a smaller footprint are often recommended.