What Is A Micro Fulfilment Center?
A micro Fulfelment center (or MFC) is a small-scale storage facility that is used by ecommerce businesses to store their inventory closer to the end consumer so they can reduce cost and transit times. These fulfilment centers are often highly automated, helping to improve operational
efficiency.
Micro fulfilment centers
No larger than 200 – 1000 sqm micro fulfilment centers operate on a smaller scale. They’re normally located in an existing store or warehouse so as not to disrupt normal operations. Due to their smaller capacity, they can only carry about 24-48 hours’ worth of inventory and require regular restocking. These fulfilment centers are not intended for long-term storage but are meant for having products ready to pick, pack, and ship as soon as orders come in
Depends on customer locations!
One of the biggest benefits of micro warehousing is storing inventory closer to where your main markets are.
But since this system is highly dependent on customer locations, it also means that changes in the market and existing customer profiles can have a negative impact on your operations and may require constant reassessment.
Not viable for all SKU types
Many micro fulfilment centers are highly automated to improve operational efficiency. While this is undoubtedly a good thing, it also means that micro warehousing isn’t always suitable for all types of products such as larger items.
You may end up seeing significant wear on your machines as a result of fulfilling heavy items like furniture and large household appliances. Not to mention large SKUs take up space, so you’ll have to resort to storing fewer items to align with the storage capacity of micro fulfilment centers.
Faster delivery times
With micro-fulfilment, companies no longer just rely on a few central distribution centers for delivery. With smaller, decentralized warehouses in densely populated urban areas, logistics is moving closer to the end consumer and thus making delivery times faster.
Increased sales
By offering fast and affordable shipping via micro fulfillment center, you’re removing two of the most common barriers when it comes to consumers buying products: slow shipping speeds and expensive shipping costs.
As more people end up converting, you drive more sales. Increased sales means increased revenue, which can then help you to scale your business.
