As retailers deploy Micro-Fulfilment Centers (MFCs) to augment their distribution networks, automated picking solutions provide the speed and space maximization necessary for e-commerce efficiency and profitability. According to global technology intelligence firm ABI Research, Automated Storage & Retrieval System (AS/RS) revenue within MFCs is expected to reach US$1.2 billion by 2027, with uptake primarily seen in the grocery and Fast-Moving Consumer Goods (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 2/3 of MFCs currently deployed in or alongside existing stores, micro-fulfillment solutions are helping retailers re-imagine how they utilize their current infrastructure to support online delivery,” explains Ryan Wiggin, Supply Chain Management & Logistics Industry Analyst at ABI Research.
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 localized delivery capabilities. A few critical solutions vendors have emerged offering dedicated micro-fulfillment packages, including Alert Innovation, Dematic, Swisslog, and Takeoff Technologies, while companies like Ocado Group are offering MFCs as an additional arm to their existing warehouse automation solutions. Most solutions are underpinned by cube or shuttle-based AS/RS, orchestrated by management systems increasingly incorporating artificial intelligence (AI) capabilities.
Store and warehouse workers are being equipped with more sophisticated handheld devices from companies like Zebra as retailers look to deploy manually operated MFCs within existing stores or facilities and help optimize online order picking. And Autonomous Mobile Robots (AMRs) inVia Robotics, 6 River Systems, and Locus Robotics are seeing deployment in MFCs as an alternative to stationary G2P automation.
“Particularly in industries where online delivery has notoriously been an unprofitable venture, localized, automated MFCs are greatly helping to reduce both cost and picking time. U.S.-based industry giants like Nordstrom, H-E-B, and Walgreens are leading in MFC solutions adoption. Still, traction is being gained by MFC solutions vendors across Europe and Asia-Pacific, signaling wider implementation of automated micro-fulfillment. End users must assess current network requirements and understand where micro-fulfillment solutions could offer significant value. Technology vendors must ensure that solutions can be scaled and be adaptable to retailer’s requirements,” concludes Wiggin.
These findings are from ABI Research’s Micro-Fulfilment Market Trends application analysis report. This report is part of the company’s Supply Chain Management & Logistics research service, which includes research, data, and ABI Insights. Based on extensive primary interviews, Application Analysis reports present an in-depth analysis of key market trends and factors for a specific technology.
About ABI Research
ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.
ABI Research提供开创性的研究和战略指导，帮助客户了解日新月异的技术。 自1990年以来，我们已与全球数百个领先的技术品牌，尖端公司，具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
Asia: +65 6950.5670