LOGISTICS
“ The pandemic accelerated this trend , as consumers were forced to find a way to provide food for their families while social distancing ,” says Jones . “ Online adoption has grown exponentially , leaving many retailers underprepared and in a reactive state .
MFCs are being driven by automation technology , with Austria-based automation giant Knapp being in the vanguard .
“ Micro-fulfilment has been driving efficiencies in the grocery supply chain for some time , and has continued to gain traction in the US and UK ,” says Jones .
He adds that micro-fulfilment is well suited to grocery retail because it involves “ large orders of perishable goods , coupled with strong demand from consumers for quicker , more convenient options for delivery and online orders ”.
Outside of food retail , Jones says many retailers are unlikely to move the same volume , meaning micro-fulfilment isn ’ t always the right approach .
He says : “ While we ’ re seeing many retailers add e-fulfilment capability , a lot of work has to be done before something as large-scale and cost prohibitive as microfulfilment can be considered .”
Inventory control crucial to micro-fulfilment Jones continues : “ A fundamental thing you need to get right is inventory control . Inventory needs to be 100 % accurate if you ’ re to communicate with customers what is available , when it is available and where it is available .
“ You also need to ensure that your goods online are well-merchandised , with accurate information about colour and size , alongside an easy-to-use transaction process .”
Once all of this has been worked out , says Jones , “ you need to develop the internal
66 April 2022