The Material Handling Blog

Bringing products as close and as fast as possible to customers triggered a new way of looking at fulfillment centers. In addition to large regional warehouses, microfulfillment centers (MFCs) are popular topics in retail, ecommerce and food industries. Before implementing any solution, it’s key to carefully review applications and properly prepare for current and future scenarios. This step can help you avoid key mistakes and select the right technology. The last thing you want to do is to install a technology that doesn’t do the job the way you expected or needed.

By now, we all know the headache that is the world of grocery ecommerce. Between a global pandemic, supply chain issues, product shortages and changing consumer demands, many grocers are scrambling to make the best decision for their customers and their bottom line. The industry transitioning from “how a grocer is going to automate the instore fulfillment process?” to “how are they going to optimize the whole process, including last mile delivery?” Brick Meets Click data showed that online grocery sales for pickup or delivery were $6.6 billion in April of this year. That’s down from the $7.1 billion in grocery e-commerce sales in March of this year, but up from $5.3 billion in April 2020. Reducing the labor spend for filling orders in the store is the first step; what follows is a strategy that can help reduce the overall cost of getting orders into the hands of customers, regardless of the hand-off location. Being a high-volume and low-margin industry, grocers need microfulfillment automation and technologies that are proven, scalable, dense, fast AND have a quick, high return on investment, like these:

Real estate is a hot item right now. Coupled with changing consumer grocery and ecommerce buying habits and frozen goods growth, cold storage is in demand. Whether a metropolitan location, to satisfy microfulfillment and hyperlocal needs, or as a regional distribution center, commercial real estate availability has dropped according to Real Capital Analytics. Cold storage industry growth, however, is projected at 4.5% by 2023. This means storage providers are faced with the challenge of optimizing facilities while handling increased inventory volumes and speed. How can cold chain supply professionals effectively prepare for this expected growth? By eliminating inefficiencies and leveraging the right material handling automation.

There’s no question that online grocery ordering is here to stay. Access to fresh produce, milk, eggs, toilet paper and many more grocery items isn’t changing. However, the process by which those products get delivered to the consumer from distribution centers – that is being re-envisioned to meet changing consumer demands. And, with that come new challenges, technologies and strategies. Let’s first look back at history.