What is Micro-Fulfillment?

Ongoing shifts in the retail landscape driven by ecommerce, along with changing customer demands and expectations, are creating increased need for fast, efficient hyper local fulfillment.

Micro-fulfillment centers (MFCs) allow companies with or without a brick-and-mortar footprint within a particular area to move fulfillment closer to customers in order to reduce transportation costs and enable shorter delivery times. Although small, as the name implies, these warehouses are well equipped to autonomously fulfill online orders fast and efficiently.

Companies can build a micro-fulfillment center as a standalone facility, or adjacent to an existing location.

How do Micro-fulfillment Centers Work?

MFCs often employ automation and robotics to address a key fundamental cost challenge associated with online order fulfillment: order picking. Automation of the process of retrieving products from the storage area significantly improves efficiency and accuracy, while also minimizing associated labor costs.

The goal is to have these micro-fulfillment centers located close enough to where shoppers live that it dramatically reduces the last mile delivery cost. MFCs are a flexible, data-driven and robotic solution that won’t become obsolete as the market changes and allows you to leverage new technologies as they emerge.