Advantages of Micro-Fulfillment Centers
Since 2020, eCommerce growth has multiplied, and there is an increasing demand for storage and logistics services to support online sales. As a result, the need for micro-fulfillment centers arose as they require much less space than traditional distribution centers, and they can be located much nearer to customers.
1. Faster Order Picking
When customers make online purchases, they expect same-day or one-hour delivery, but it could be challenging for the seller to deliver at the earliest, especially with high sales volumes. So the first step is retrieving products from the storage fast enough to fulfill orders in less time.
2. Faster Order Delivery
In addition to shortening order picking time, micro-fulfillment centers also allow faster delivery by establishing centers near customers.
3. Lower Operating Cost
A micro-fulfillment center is faster than a conventional warehouse and has lower operating costs. Fast delivery of goods to customers is a key benefit of MFCs. Transit time is shorter as they are spread across the country and near your audience. As a result, your customers will appreciate faster shipping, and your shipping costs will be reduced due to the closer distance.
4. Increased Product Variety
Compared to a traditional warehouse, MFCs use space more efficiently, meaning that a given area can accommodate more products. This way, retailers can sell more products online without renting more space.
5. Optimized Inventory and Omnichannel Fulfillment
MFCs could also be used in eCommerce stores for top-selling SKUs usually bought alone. This would help position products closer to customers and increase the fulfillment speed of most of the inventory.
