What Is Micro Fulfilment? Understanding Efficient Logistics
In recent years, supply chain disruptions have made it quite challenging for eCommerce and retail owners to meet their customers’ needs. Shipment delays that often led to the lack of most-desired products being delivered to retailers left them with having too much stock, but not enough of the stock that sells the best.
Luckily, that’s where a well organised micro fulfilment centre can step in to save the day. These establishments offer to serve customers “at the point of need” which significantly streamlines the efficiency of logistics.
What Is Micro Fulfilment?
In order to explain this concept better, we must first answer what is micro fulfilment? Simply put, micro fulfilment refers to ordering fulfilment that requires a small-scale fulfilment centre instead of a large-scale warehouse. These centres are often located close to urban zones which directly affects the delivery time, making it significantly shorter and more streamlined.
These micro warehousing facilities are most commonly designed to process online orders efficiently, with minimal human intervention involved. As many of them leverage advanced technologies, such as robotics and AI-powered software systems, the fulfilment services they offer are designed to make deliveries seamless, take away the pressure and supercharge logistics through tried-and-tested methods and AI capabilities.
How Does It Work?
As mentioned earlier, the main focus of micro fulfilment centres is to offer their customers a way to streamline their fulfilments, and take away the pressure of completing orders, so that they can focus more on other aspects of running their business.
Unlike large-scale warehouses that are often located outside urban areas, micro fulfilment centres are located near densely populated areas, which makes it significantly easier to reduce delivery times and transportation costs. Needless to say, this plays a huge role in meeting customer expectations for speedy delivery. On top of that, thanks to automation, these micro warehousing centres guarantee to fulfil orders swiftly and accurately.
So, in order to start, you should first choose a micro fulfilment centre you wish to do business with. Ideally, it should be located as close as possible to your target demographics, so that everything runs smoothly. After that:
- Sign up and start working with your dedicated account manager to get your business and your products setup on the seller portal.
- Your orders will then be synced with the portal and will be integrated with all the sales channels and marketplaces the centre is working with. Ideally, look for centres that work with big marketplaces, such as Walgreens, Shopify, WooCommerce and Amazon to potentially expand your reach.
- Once your stock reaches the micro fulfilment centre, they will book it in and make it ready for picking, packing and delivery.
It’s very important that you find a centre that offers ongoing support, because that’s where the true value is. Otherwise, the whole ordeal may be more stressful than it needs to be.
How we fulfil orders
Here at Bezos, the process of fulfilling your orders is rather simple.
Why Is There a Need for Micro Fulfilment?
Every business’s end goal is to cater to their customers’ needs as much as possible. And since today online shoppers expect quick delivery, often within hours, and demand for same-day or next-day delivery options, being able to offer them just that will put your business ahead of others.
What’s more, micro fulfilment doesn’t really deal with some of the common struggles faced by larger-scale warehouses, such as properly handling stock and order volume, as well as timely delivery.
On top of that, micro fulfilment is also:
- Greener - Especially when it comes to eCommerce fulfilment services. The fact that these micro warehouses are usually located closer to consumers significantly reduces the carbon footprint of the delivery process. Additionally, many micro warehouses also use eco-friendly delivery vehicles, which makes everything even greener.
- More efficient - Aside from transportation, automated and AI-powered picking solutions make the process more efficient, which leaves room for more orders to be accepted and processed on a daily basis.
- Faster - By moving logistics closer to the consumer delivery times are significantly cut shorter, as opposed to relying on just a few central distribution centres.
- More cost-effective - Not only are micro fulfilment centres generally cheaper to set up and operate, as opposed to large warehouses, but they are also automated, which means that fewer resources are being poured into storing, picking, packaging and shipping. So, it’s safe to say that micro fulfilment is cost-effective both in terms of manpower and time.
- More easily scalable - Micro fulfilment centres are highly scalable simply due to their size and can be easily replicated or expanded to meet fluctuating customer demand.
How Are Micro Fulfilment Centres Different from Dark Stores?
Even though, at first glance, micro fulfilment centres and dark stores may seem like pretty much the same thing, they are - in fact - different.
Dark stores are better suited for larger retailers and generally require more space to be set up. They are entirely closed to the public, which means they don’t serve walk-in customers even though they are commonly set up to resemble a grocery or retail store.
When talking about products, dark stores usually stock a wide selection of products similar to those in traditional stores, whereas micro fulfilment centres stock a limited range of products, focusing on high-turnover items or specific categories to optimise space and speed.
Who Is Micro Fulfilment Best Suited for?
Generally speaking, any business that deals with seasonal or fast-moving goods can benefit from going with micro fulfilment, but some may reap more benefits than others. For instance, businesses that offer food and drinks, pet supplies, home and gardening products, baby products or any other high-volume, perishable products stand to benefit the most.
On the other hand, businesses that offer furniture, luxury goods and similar items would benefit more from long-term storage solutions, as these items don’t really have such high trading volumes as the ones mentioned previously.
How to Choose a Micro Fulfilment Centre?
Since many brands choose micro fulfilment as a strategy that can help them gain competitive advantage, it’s really important to know what to look for when choosing a centre to work with.
First off, start by analysing your business and customers in depth, to identify the type of fulfilment strategy you need to implement. This will enable you to determine the location of the centre your business will benefit most from. Additionally, you need to decide if you wish to offer same or next-day delivery, decide on the type of orders you’re going to fulfil, as well as create a long-term strategy.
After these initial considerations are sorted, you should also consider factors such as:
Why Choose Bezos for Your Order Fulfilment Needs?
Here at Bezos, we pride ourselves on our affordable and flexible solutions that are built for scaling up alongside your business. Instead of having to worry about the logistics of delivering your goods punctually and reliably, our services enable you to focus on other areas of your business.
Thanks to our state-of-the-art system, all your sales platforms and marketplaces will be integrated automatically with over 30 major eCommerce platforms, including Shopify, WooCommerce and Amazon.
We also offer:
- Transparency as our service puts your information first, enabling you to view your data whenever you want.
- Responsive customer service that addresses any issues promptly and effectively - usually within two hours.
- Global reach and international orders so that your products clear customs smoothly, avoiding unnecessary delays and additional costs.
- Sustainability and eco-friendly practices that benefit both the planet and your businesses.
- Bespoke solutions that ensure that every aspect of the fulfilment process is perfectly aligned with your specific needs and goals.
So, check out our website and get a quote today to learn more about how we can help your business logistics become more efficient.
Conclusion
Choosing a reliable micro fulfilment centre is a new way of thinking about logistics and how to fulfil orders; it presents eCommerce companies and retailers with an effective way to meet the rising demands of modern-day shoppers.
Through integrating sophisticated technologies with adaptive, dispersed fulfilment models, companies can gain advantage and provide customers with excellent service in the fiercely competitive online shopping arena. In the ever-changing retail industry, adopting micro fulfilment may be the key to staying competitive without losing ground, thus allowing businesses to continue flourishing in a rapidly evolving commercial atmosphere.
Frequently Asked Questions
What is a micro fulfilment centre?
A micro fulfilment centre, or a micro warehouse, is a highly automated small-scale storage facility most commonly used by eCommerce businesses and smaller retailers to store, pick, pack and ship inventory. These centres are usually located closer to the end consumer, so that they can reduce cost and transit times.
What does a fulfilment centre do?
A fulfilment centre is a third-party service provider that offers to process and ship purchased products on behalf of retailers and eCommerce businesses. They also handle the logistics of getting an online order to a customer's doorstep, eliminating the need for their clients to package, address and ship each order on their own.
What is an example of a fulfilment centre?
Some of the best-known examples of fulfilment centres include Amazon Fulfilment Centres, Shopify Fulfilment Network and third-party logistics (3PL) providers like ShipBob and Fulfilment by FedEx.
