The Technology Transformation of the Back of the Store (And Why It Matters)
Consumer expectations are rapidly evolving and the capacity to meet these expectations is becoming a crucial business differentiator. Customers of the retail and eCommerce sectors increasingly expect faster and more convenient deliveries.
Today, in the world of heightened customer expectations, same-day or 1-day deliveries are becoming the norm. Data shows that:
Limited floor space
MFCs or Micro Fulfillment Centers are smaller, purpose-built facilities that are close to the customer locations that 3PLs need to accelerate order fulfillment. Unlike large warehouses, MFCs have a smaller footprint and are usually less than 50,000 square feet. Some MFC designs are as small as 2,000 square feet.
As the focus on same-day delivery increases the need for more fulfillment centers closer to the customer rises as well. The space constraints of urban areas need MFC to use space vertically going up to > 8’ ceiling heights. Enabling horizontal and vertical movement in three dimensions to pick and pack products can be a challenge in these small spaces.
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