Micro-Fulfilment Centres: The Future of E-commerce Warehousing
Micro-fulfilment centres (MFCs) are emerging as a game-changing solution for e-commerce businesses, enabling quicker order processing and last-mile delivery optimisation. E-commerce warehousing is a rapidly evolving field, with micro-fulfilment centres being just one of the many emerging changes allowing for more efficient and effective order fulfilment.
At Allegro Logistics, we provide integrated e-commerce fulfilment solutions for a range of modern, innovative brands. In this article, we explore how MFCs are revolutionising logistics by reducing delivery times, lowering operational costs, and improving efficiency in urban warehousing.
What Are Micro-Fulfilment Centres?
Micro Fulfilment Centres are smaller fulfilment spaces that are often situated geographically closer to consumers, as to reduce transportation costs and transport times. In many cases, micro-fulfilment centres also utilise automated technology to assist with fulfilment operations – this is especially helpful when businesses are contending with contemporary models that demand efficiency, such as same or next-day delivery.
For this reason, micro fulfilment centres are especially popular with businesses that deliver perishable goods, for example, meal subscription boxes that transport fresh food. As well as businesses that operate with fast delivery speeds as a primary selling point – such as Amazon.
Benefits of Micro-Fulfilment for E-commerce
Faster Delivery
Closer proximity to customers makes transporting fulfilled orders from the warehouse to the customer’s door not just quicker, but easier too. Without micro-fulfilment centres, the journeys travelled by parcels might be lengthy, complicated, and require considerably more manpower than those fulfilled at micro-centres.
With delivery speed being one of the most important things to modern customers, maximising efficiency is more important than ever. Not to mention how being closer to a given destination offers couriers greater flexibility and opportunities to adapt in the event of road closures or disruptions.
Lower Delivery Costs
Micro-fulfilment centres also offer businesses financial advantages through their closeness to customers. Shorter courier journeys make for savings on fuel and may even reduce the number of workers required to drive fleet vehicles.
Optimised Inventory Management
Switching to a micro-fulfilment system can also have benefits for inventory management. As previously noted, many micro fulfilment centres make use of automation technology to assist with the organisation and fulfilment of orders.
Having a physically smaller warehouse may also assist with ease of picking and packing orders in preparation for dispatch. Using micro fulfilment centres also offers businesses a clear picture of supply and demand in a particular area, allowing them to make more accurate trend forecasts and predict opportunities to upscale and expand depending on the consumer behaviours of a given area.
Sustainability
Micro fulfilment centres also offer a range of sustainability benefits, firstly, the operation of a smaller warehouse premises will require less power than larger regional or national fulfilment centres for day to day operations.
Secondly, reducing the proximity between the supplier not only reduces the amount of money to be spent on fuel for courier vehicles, but the carbon emissions generated by these vehicles too. If working in a particularly concentrated area, delivery vehicles could also work within a specially tailored route system to preserve fuel and minimise emissions. In serving a smaller customer base, the number of courier vehicles themselves may also be reduced, allowing for further reduction of carbon emissions.
Greater Customer Satisfaction
When it comes to e-commerce fulfilment, optimising customer satisfaction is a key objective for any business, and micro-fulfilment centres offer businesses the perfect solution to meeting this goal. In addition to maximising the smooth running of a logistics operation, factors such as fast delivery, fewer delays, efficient inventory management and sustainability are all factors that may influence how satisfied a customer feels with the service they have received. The happier the customer, the more likely they are to purchase again.
Implementing Micro-Fulfilment in Your Business
Implementing an effective micro-fulfilment strategy involves careful planning that considers all elements of your business and its strategy.
In order to implement a strategy that is going to enhance the service your business offers, it is important to pinpoint key sources of demand or markers of what might be going on within a business currently. Such considerations might include – Is there a demand for next day delivery? Is this demand concentrated to a particular area? Are these orders consistently featuring particular products? Even considering the location of notable nearby business/supplier hubs.
From the conclusions of such research, businesses can then allow these trends to be accommodated by automation or other aspects of order fulfilment.
For expert support on how to implement micro-fulfilment within your existing business model, get in touch today. Our specialist team are on hand to help your business find the right approach to micro-fulfilment for your needs and your customers.
Future Trends in Urban Warehousing & Micro-Fulfilment
Customer needs and expectations surrounding e-commerce fulfilment are growing and changing year upon year. As a result, it is likely that the e-commerce space will continue to evolve in the years to come. Trends forecasted to enter and grow within the field include:
The Rise of Dark Stores
One concept often discussed with regard to hyperlocal fulfilment are dark stores. Dark stores are retail locations that are closed to the public, but function as private spaces to fulfil online orders. These dark stores are gaining in popularity across several sectors and industries – allowing for maximally efficient serving of particular communities or areas of high demand.
Increased Automation and Robotics
Another trend forecasted to continue growing is the incorporation of automation and robotics. These technologies are particularly effective in assisting with aspects of fulfilment such as picking and packing. Such technologies might also include automated storage and retrieval systems, all of which combine to allow for quicker and more accurate order fulfilment.
AI and Predictive Analytics
AI and predictive analytics are also set to continue growing within the urban warehousing and micro-fulfilment space. Such tools might assist with business facets such as demand forecasting, dynamic order routing or even curating tailored fulfilment experiences.
Streamline Your Fulfilment with Allegro Logistics
Micro-fullfilment centres offer easy access to population hubs, streamlining your logistics process and reducing delivery times. They work best as part of a larger logistics strategy, working alongside other delivery avenues to offer a comprehensive range of delivery options for your customers.
At Allegro Logistics, we offer integrated e-commerce fulfilment solutions from our home in Bristol, with extensive experience in the logistics industry. For more information about how our services could help your e-commerce business, request a quote today.
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