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Micro-Fulfillment Centers

Omnichannel fulfillment complexities are permeating every sector of the retail landscape. To meet escalating customer service demands, retail leaders are looking for ways to augment regional distribution center (DC) hubs with a rapidly emerging micro-fulfillment center (MFC) strategy — one that utilizes highly automated, high-density, small-footprint automation systems that can be installed in stand-alone facilities or in (or near) existing stores. In this hypercompetitive market, retail leaders who are already adopting MFC strategies are gaining a first-mover advantage. Honeywell Intelligrated is combining robust automation equipment, robotics and advanced execution software to help retailers deploy micro-fulfillment strategies all across the retail spectrum.

From grocers to major e-commerce players and traditional big-box stores, retailers are faced with unprecedented omnichannel fulfillment complexities. Not only do customers want faster order fulfillment and delivery, but they’re also opting to buy online and pick up in store (aka BOPIS or “click-and-collect”) — often within a few hours. For both pure-play e-tailers and brick-and-mortar leaders, adopting an MFC approach is helping companies to accelerate deliveries and shorten the distance between fulfillment centers and their customers. As a pioneer in MFC technologies, Honeywell Intelligrated is helping leading retailers deploy these robust, flexible solutions to improve fulfillment logistics and meet escalating consumer demands.

Weathering a perfect retail storm

As more consumers purchase through preferred online channels, it’s estimated that worldwide e-commerce sales will double between 2018 and 2023. Combined with escalating labor challenges, the scarcity of real estate and the need to digitize fulfillment and supply chain logistics, e-commerce pressures have created a perfect storm of market conditions for micro-fulfillment strategies to emerge.