Ladd believes the fast-paced grocery delivery industry will evolve into a fast-paced retail delivery space due to the growth of e-commerce and consumer demand for speed.
The latter begins to ask this question: Why can I receive my groceries in 15 minutes, but not cosmetics, clothes, shoes, electronics and other products in the same time?
“Logistics networks are not designed to deliver retail products overnight, let alone within 15 minutes. However, that is changing,” Ladd wrote.
He indicated that by 2030, Davinci Micro Fulfillment is opening 750 to 1,000 automated MFCs. The company has four plants under construction.
Amazon, meanwhile, is investing heavily in opening automated MFCs to fulfill orders from stores and stand-alone MFCs. Amazon opens MFCs nationwide, Ladd states.
CPG companies and brands want to go directly to consumers to bypass retailers. Instead of relying on Amazon or Walmart to fulfill orders, you’re looking for an alternative. The alternative is microfilling, Ladd says.
DoorDash, Gopuff, Shopify, Instacart, and Uber are all actively exploring robotics and automation for fulfillment.
Instead of fulfilling their own orders, these companies can partner with a company that provides micro-fulfillment as a service.
Ladd said: “Orders can be fulfilled and picked up by employees of the companies I have listed. It is a very fast and cheap complementary model. In addition, MFCs increase revenue opportunities with more than 10,000 SKUs.
“Automated MFCs can supply chilled, frozen and ambient temperature products. This means that a consumer can order a variety of products and have them delivered within hours.
He concludes: “Retailers need to sell more products to customers and deliver them faster. Automated micro-fulfillment centers are the ideal method to fulfill the orders.
“Deliveries can be assigned to any number of carriers. Consumers don’t have to wait long for fast delivery of the retail products they need the most.
