What is micro-fulfilment?

Let’s start with a definition of micro-fulfilment. It refers to small-scale distribution centers located closer to the end customer to address the issue associated with the last mile. These micro-fulfilment centers are often attached to local retail stores or contained in larger distribution centers. For example, grocery stores are turning the back area into micro-fulfilment centers. Retail space is reallocating space to micro-fulfilment centers.

We contributed to a Sage whitepaper, “Distributors’ Guide to Micro-Fulfilment“. In that report, several compelling statistics were shared:
  • Increased delivery options: According to EFT’s global Supply Chain Last Mile Report 2020, 65% of retail delivery and logistics providers worldwide believe increased delivery options to be their most important focus over the next three years (Dassault Systemes).
  • E-commerce fulfilment will grow: According to Agility, 35% of the logistics industry professionals believe e-commerce fulfilment will continue to grow. (Agility)
  • Data and analytics rule: According to a PWC report, data and analytics is more important for the transportation and logistics industry than any other in the next 5 years.

Whether or not you are in an industry that might be a good fit for micro-fulfilment, you should pay attention. Evolving the supply chain for changing customer conditions and needs is a universal concept. Those that figure out how to reconfigure their supply chain to better meet customer needs quicker than the competition will lead the pack. Certainly, those that embrace technology to support their e-commerce business will be better prepared, and those that dig into data and can use it to make better decisions will increase revenues, profitability and working capital. If you are interested in assessing your supply chain strategy and data and analytics capabilities, contact us to discuss your situation and objectives.

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