MFC for Ecommerce
Fulfillment systems for e-commerce
Every day new e-commerce activities are born. E-commerce, especially in the last period, is becoming more and more popular. E-commerce growth: as more buyers buy through favored online channels, it's evaluated that overall web based business deals will twofold somewhere in the range of 2018 and 2023.
To a growth of this kind, however, corresponds an exponential increase in logistical issues because the ordinary management overlaps with the extraordinary management of products (sent or returned to sender, etc…).
A well organized e-commerce, however, must include in its initial business plan a correct calculation of the incidence of delivery costs of goods / products purchased on the web.
It is clear in any case, that the logistics system that is upstream of an evolved e-commerce is fundamental. This system must include savings in terms of:
- Goods delivery time
- Delivery costs
- Space allocation dimensions
What characteristics must a logistics system have to be suitable for e-commerce?
In e-commerce there are numerous variants that sometimes make logistics management problematic:
- Delivery costs of the “last mile” (increased significantly in recent years)
- Very short order preparation times, parcels for these demanding time standards should already be as close as possible to the place of delivery
- Increased logistical costs
- Change in customers’ expectations (increased theft, inability to receive parcels at home)
We suggest New technological solutions for retail and e-commerce activities
There is no ideal solution “suitable for everyone” to solve the problems that e-commerce brings with it.
However, at OTO Solutions, we firmly believe in the potential of new technologies related to logistics and we promote the technology related to micro-fulfillment centers.
Micro-fulfillment Center is a recent and rapidly growing system that has recently appeared on the market. It’s an automated fulfillment systems that allow the store to process orders online in a short time, both for pick-up in store and home delivery without interfering with shoppers in the store. With a reduced footprint, storage density is significant for having all SKU‘s needed. As they serve a local area, they do not need a very high flow in order lines per hour. On the other hand, Time to order ready instead is crucial to for the existing trends in the market, such as click and pick, curbside (pick up without getting out of the car) picking or 30-minute delivery.
Why the micro-fulfillment system will be required by many e-commerce companies in the next few years
Micro-fulfillment is the answer because it meets the need for speed while providing retailers with the treasure trove of customer data that can be used to further enhance the overall customer experience.
However, the micro-fulfillment system may be on the rise because it helps companies solve many of the problems of online sales listed above by helping speed delivery, data control, and management costs. Sure, this can mean an increase in total inventory, but transport costs and customer experience can make it worth it.
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