Research predicts MFCs growth
MICRO-FULFILMENT is gaining traction to augment distribution networks and bring inventory closer to the consumer, presenting an opportunity for scaled down automation, says ABI Research.
As retailers deploy Micro-Fulfilment Centres (MFCs) to augment their distribution networks, automated picking solutions provide the speed and space maximisation necessary for eCommerce efficiency and profitability. According to global technology intelligence firm ABI Research, AS/RS revenue within MFCs is expected to reach US$1.2 billion by 2027, with uptake primarily seen in the grocery and FMCG industries.
“The need for high-density storage and fast fulfillment capabilities allows technologies to scale down and enable a flexible, bespoke frontline distribution network. In addition to automated high-density storage systems, retailers are also looking to enhance manual picking operations to deliver micro-fulfillment solutions using handheld devices and Goods-to-Person (G2P) mobile robots. With over two thirds of MFCs currently deployed in or alongside existing stores, micro-fulfillment solutions are helping retailers re-imagine how they utilise their current infrastructure to support online delivery,” explains ABI Research supply chain management & logistics industry analyst Ryan Wiggin.
Delivery times are getting faster, down to a matter of hours for certain products. As demand for alternative shopping experiences like click-and-collect increases, customer attraction and retention rests heavily on effective inventory management and localised delivery capabilities.
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