Micro-Fulfillment:

Micro-fulfillment can be described as the concept of combining warehouse automation and retail stores in urban areas to locally fulfill B2C eCommerce orders. A strategy that places small-scale warehouse facilities in densely populated urban locations closer to the consumer to improve delivery times. The combination of automated order fulfillment technology, co-located in urban areas, brings inventory closer to the end-user, while leveraging the productivity and efficiency of automation. Micro-Fulfillment facilities are characterized by their comparably low total cost of ownership, short installation lead-times and their ability to boost productivity and optimize available storage space.

This de-centralized fulfillment strategy enables retailers to instantly fulfill customer orders while reducing cost per picked unit and final-mile delivery costs. Essentially, it is currently the best strategy out there for retailers to keep up with the emerging on-demand economy.

Product Overview:

  • Hybrid between retails tore and warehouse
  • Automated storage and retrieval systems
  • Goods-to-person order fulfillment
  • Fast installation times
  • Intelligent software management system
  • Designed to fit into small spaces, typically within 10,000 SF

Solution Benefits:

  • Hyper-local warehouse automation co-located in retail spaces
  • Fast and flexible order fulfillment
  • Boosts fulfillment productivity leveraging automation for efficiency
  • Scalable and modular performance and design
  • Brings inventory closer to the customer enabling faster order fulfillment and reducing last mile delivery cost
  • A simple and compact last-mile delivery solution that can be placed anywhere, especially where real estate space is limited or cost-prohibitive
  • Reduces footprint and storage cost
  • Designed for home delivery or click& collect (curbside pick-up)
UOM Value
System Size 10,000 SF / 20’
System Performance 1,000 orders/da
System Capacit 5,000 – 10,000 SKUs
Installation Time 6 – 8 months

Solution Limitations:

  • Limited inventory storage capacity reducing available assortment
  • Creates a complex order consolidation process
  • Upfront investment often perceived as too high
  • Requires full-time service & maintenance technicians
  • Some solutions charge a sales transaction fee
  • Many retail stores have a sub-optimal design for Micro-Fulfillment
  • Requires building infrastructure to handle frozen products

Technology Providers:

  • NanoFulfillment
  • Take-Off
  • Dematic
  • Fabric
  • URBX
  • Davinci Micro-Fulfillment
  • Bastian Solutions
  • AutoStore
  • Swisslog
  • Vanderlande