Why did microfulfillment struggle with e-Grocery orders?

Microfulfillment initially promised a cost-effective solution, but its actual implementation costs ranged from $6 million to $9 million, significantly higher than the anticipated $3 million. Grocers have yet to establish a proper network for decentralized fulfillment, and existing technologies face limitations in leveraging in-store and satellite urban locations effectively.

In-store cube and shuttle systems require manual picking for about 60% of SKUs, leading to consolidation challenges and inefficient use of floor space. Once installed, these technologies become immovable monuments, making relocation or redeployment difficult and costly. Additionally, cube technologies lack the ability to deploy active cooling storage totes, hindering tri-temperature storage and fulfillment without expensive manual interventions.

Operational microfulfillment sites struggle to meet expectations, processing only 250 to 400 orders per day, insufficient to justify investments in automation solutions. Confusion persists regarding data ownership in Microfulfillment FaaS offerings. While microfulfillment retains its place in the e-Grocery supply chain, it may not be feasible for urban locations, making dark stores a viable alternative.

The solution for decentralized fulfillment: Nanofulfillment

Nanofulfillment offers a unique approach, designed for portability and re-deployment, with affordable pricing and compact size, fitting seamlessly into small spaces. Rapid deployment minimizes disruption to retail environments, while innovative solutions enable handling of ambient, frozen, and chilled products in finished orders. Nanofulfillment provides ownership of data and offers operational leases with high residuals, allowing for the establishment of a network of Nanofulfillment Centers (NanoFC®’s) at lower costs and with less risk.

Key features of NanoFC® include:

• Designed and patented for portability and re-deployment
• Affordable pricing, including operational leases with high residuals
• Compact size, fitting seamlessly into small spaces, either in-store or in new satellite locations closer to customers
• Rapid deployment in less than one week, minimizing disruption to current retail environments
• Innovative solution for powering active cooling totes within existing carton flow rack storage modules, facilitating handling of ambient, frozen, and chilled products in finished orders
• Ownership of data, with included Scala software package offering full inventory control, including min/max holdings and zero crossing events, allowing for easy reporting.

Visit our NanoFC® at our Sarasota, FL tech center or booth A14013 at MODEX 24’ to learn more. Don't miss our session on the future of omnichannel growth in grocery at MODEX 24’!

Reach out to us today, schedule a visit to see the NanoFC at our Sarasota FL tech center, or drop by Booth A14013 at Modex2024 to meet our experts in person. If you are at the Modex show, you must visit our session on:

Future of Omnichannel Growth in Grocery: Sustainability meets scalability and customer satisfaction

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