Smaller is proving bigger in fulfillment centers thanks to increasingly sophisticated robotics technology. Companies looking to get goods to online consumers faster are turning more attention to microfulfillment, writes The Wall Street Journal (Nov. 9, 2020). This strategy puts robots and specialized technology to work in tight space spaces close to where e-commerce shoppers live.
A Brooklyn site fitted out with an automated system from Israeli robotics provider Fabric (formerly CommonSense Robotics) highlights the process in action. The 7,500 sq. ft. warehouse hosts chunky metal machines that shuttle goods from storage racks to the warehouse floor for mobile robots to ferry them along in an intricate dance choreographed by software. The automation allows users to pack goods in narrow aisles that human workers can’t reach, getting more use out of urban real estate that’s too costly for many larger logistics operations. Those economics have companies such as Nordstrom, Albertsons, Walmart, HEB, and FreshDirect, installing microfulfillment facilities.
By squeezing those operations into urban warehouses and the backs of stores, businesses pare delivery times so online orders reach their destinations in hours, not days. Fabric’s CEO said companies should be able to get orders picked and packed in 5 minutes or less with only a handful of workers.
For grocers coping with surging online demand during the pandemic, the technology offers a faster ROI than larger robotics-equipped warehouses while allowing retailers to fill orders more quickly than they can with human workers walking store aisles. The microfulfillment sites are becoming a new focus for retailers adjusting to the dizzying changes in consumer markets. Some merchants had been testing such sites in recent years, but the rush to online shopping during the coronavirus pandemic is accelerating moves toward space-saving, automation-powered warehouses.
Classroom discussion questions:
- How do these warehouses differ from the typical Amazon distribution centers?
- What are the advantages and disadvantages of microfulfillment centers?