The supply chain industry is constantly evolving to meet the fast-paced consumer demands for fulfillment, shipping, and delivery. Third-party logistics companies (3PLs) are not always equipped to handle these demands, and many brands lose profit due to inconsistencies in their distribution networks.
So, how can you ensure that your brand meets consumer demands?
While 3PLs are useful in handling distribution and shipping, their warehouses are often located far from the end customer, and brands can lose control of their operations.
The more efficient option: micro fulfillment centers. These centers handle multiple aspects of the supply chain, including assortment, network optimization, replenishment, fulfillment, and data analytics, in convenient locations close to the customer. By transitioning to micro fulfillment, you can seamlessly connect your operations to regain control of your brand.
As Corey Apirian, CEO of Davinci Micro Fulfillment, says, leveraging micro fulfillment requires understanding the customer’s needs and the facilities you should be selling from. Once you take that next step, you can maximize the customer experience and grow your brand.
According to Corey, 99% of all brands and retailers will offer same-day delivery by 2025. So what can you do to ensure your brand aligns with the industry’s development?
For starters, it’s important to optimize your fulfillment channels. To achieve this, Corey recommends taking an omni-channel approach and choosing hyperlocal facilities to place your products. Corey also notes that being in close proximity to your customer allows you to digitize and better evaluate consumer data to meet delivery demands with precision.
While micro fulfillment enhances predictability in the supply chain, it still requires you to manage your day-to-day operations. That’s where automated micro fulfillment centers come in.
With automation, you can decrease your footprint and maximize your throughput. This fulfillment method is especially beneficial for brands with larger service levels. After all, you don’t want to be handling everything manually when you’re receiving thousands of orders an hour.
Corey affirms that automated micro fulfillment centers will keep your cost structure down and help you efficiently satisfy consumer demands. The result? Increased profits and a better customer experience.
