Getting the Most From Micro Fulfillment

AS GROCERY E-COMMERCE GROWS, FOOD RETAILERS NEED BETTER WAYS TO PICK ONLINE ORDERS.

- Thad Rueter

A big bright spot — if you can call it that — during the pandemic has been the blazing growth of food retail e-commerce, which is enjoying triple-digit sales growth.

But even as evidence mounts that many grocery shoppers will stick with e-commerce — online ordering, curbside pickup, home deliveries — after the pandemic subsides, food retailers face the stiff challenge of how to keep up with all of that digital growth and activity. That helps to explain the quickening rise of micro fulfillment centers, which are designed to act as mini distribution centers that enable grocery workers to efficiently and profitably pick online orders without disrupting other store operations.

“Micro fulfillment is central to our expansion strategy,” says Tim Knoll, COO of Bronx, N.Y.-based FreshDirect.

During the pandemic, the online grocer has seen a 100% growth surge in its suburban footprint and is now working to quickly expand its services while consumer interest in food retail e-commerce reaches all-time highs.

“The combination of the technology with our expertise in automation and fresh food enables us to get closer to our customers quicker and more efficiently with two-hour on-demand delivery of the same great-tasting, quality fresh and prepared food selection mix we offer our customers in New York City,” Knoll adds.

MFC Models