Supply Chain Briefing: Automated Micro Fulfillment Centers

Executive Summary

In our biweekly Supply Chain Briefing series, we discuss how technology is transforming the various stages of the retail supply chain, including product design, demand forecasting, manufacturing, logistics, warehousing, last-mile delivery and sales. We also discuss other developments that relate to the retail supply chain.

This report discusses micro fulfillment centers, which companies are increasingly using to streamline their supply chain.

• Automated micro fulfillment centers are small-scale warehouses with robot-equipped picking facilities located in urban settings closer to consumers.
• Companies such as Woolworths in Australia and Rami Levy in Israel have established micro fulfillment centers to make operations more efficient.

Below, we illustrate the seven major components of the retail supply chain, and some of the technologies that can support processes at various stages – from product design to end consumer.