Ecommerce Order Fulfillment – Instant Delivery Services : In the rapidly changing world of e-commerce, businesses have to reinvent
themselves to stay ahead constantly. In order to remain profitable and succeed in an extremely competitive industry, companies need to streamline their operations and optimize resources effectively. As a result, many retail companies are investing in micro fulfillment centers that help them.
These centers are smaller versions of fulfillment centers, which are large warehouses used by online retailers to fulfill orders from their websites.
What is a Micro fulfillment Center?
A micro fulfillment center is a warehouse that specializes in handling smaller-sized orders that may have previously been sent directly to customers from a retailer’s main distribution center. The idea behind these centers is that smaller orders can be more efficiently handled near where their customers are rather than shipping the items to the retailer’s main warehouse far away.
This type of fulfillment center will be located relatively close to the retailer’s target market so that smaller orders can be delivered more quickly and cheaply. Orders are consolidated at the center based on the distance they need to travel, and then they’re sent to the customer using integrated logistics software. A micro fulfillment center may also be known as a mini-fulfillment center or an edge-fulfillment center.
How does a Microfulfillment Centre operate?
In the traditional fulfillment model, the retailer places inventory in its warehouse and then ships it directly to customers. Alternatively, the retailer may enlist a third-party logistics provider (3PL) to handle the picking and packing process.
The micro fulfillment center model, however, allows retailers to consolidate smaller orders from local customers and ship them to the end customer from a local micro fulfillment center. This center for eCommerce fulfillment service is located close to customers and may be operated by the retailer itself or by a third party. MFCs occupy a consolidated area of 2,000-5,000 square feet.
Using a smaller footprint in comparison to large warehouses, they save acres of space needed for logistics and delivery procedures. The providers intentionally locate these centers in dense urban areas.
Importance of Microfulfillment Centers
With the number of online shoppers steadily increasing each year, retailers need to adopt such micro fulfillment centers to manage the growing demand for efficient shipping. This method enables retailers to consolidate orders placed by customers who are close to these centers and ship them from a local facility. As a result, customers can see reduced shipping times and related costs. The benefits of a mini fulfillment center include:
Reduced distribution costs: By consolidating smaller orders, retailers can reduce shipping costs while improving customer satisfaction by reducing the amount of time it takes to receive an order.
Improved inventory management: Businesses can more accurately forecast demand for specific items by tracking how often they are ordered. When demand is forecast accurately, sellers can reduce the amount of inventory they have on hand, which can help increase profits.
Improved customer experience: By using a micro fulfillment center with a just-in-time inventory model, retailers can ensure that customers receive their orders quickly while avoiding the need to maintain large inventories.
Product portfolio expansion: Even established e-commerce brands struggle with fulfillment complicatedness caused due to increase in product varieties. Managing these centers with fulfillment automation tools enables e-commerce brands to handle this situation effectively.
More efficient supply chain: By leveraging the power of these mini fulfillment centers, retailers can create a more streamlined supply chain.
Conclusion
As e-commerce continues to grow, retailers must find new ways to reduce shipping times and costs while maintaining a high level of customer service. Micro fulfillment centers can help them achieve all of these goals. Although they require large upfront investments, these centers are likely to become standard practice in the e-commerce industry as the business grows.
Ecommerce Order Fulfillment – Instant Delivery Services
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