Last-mile fulfillment is known to be the key arena for retailers. Regardless of the type of the industry, which can be e-commerce, supermarkets, or textile, it is viewed as one of the key factors that decide the market victors regarding margins and time of fulfillment. Hence, retailers are presently underlining the requirement for automated fulfillment processes– small-scale warehouses in available urban areas, near the end consumer. The usage of these little fulfillment centers can empower progressively consistent and reasonable fulfillment centers and altogether enhance the end-user delivery processes.
Why automated fulfillment centers are the next big thing?
Talking about the order fulfillment services India, the focal point of customers progressively lies in the capacity of retailers to give quick, modest, and adaptable last-mile fulfillment services. This way, we see a change from manual warehouse activities towards inventive mechanical arrangements that influence AI calculations to accomplish quicker, consistent and effective satisfaction. As indicated by a Service channel report, 41% of customers state they are less inclined to come back to any store of a similar brand where they’ve had an awful encounter, and 69% case they are bound to shop at a contending brand after a single terrible encounter. In an ongoing review made by the NRF, they found that over 40% of e-commerce retailers who use fulfillment centers India agree that their top-most priority is quick and hassle-free delivery to their customers and they can take care of the rest.
In spite of the fact that the market is still in its beginning phases, Interact Analysis assessed that in 2023 automated micro-fulfillment centers will represent around 20% of all the demands of the warehousing automation in terms of revenue.
Race for automation in fulfillment centers
In the past decade, there has been a tremendous spike in the magnitude of the online businesses, and it majorly involves e-commerce sites. While Amazon and Flipkart are among the larger names which use fulfillment center, India, we saw a few new entrants in the markets, a popular one being Tata Cliq. One thing that is common between all of them is that they all strive to fulfill the orders at the best possible rate and increase their penetration to a more substantial level.
As for the order fulfillment services, India, the idea of fully automated fulfillment center still sounds like a scenario at least ten years from now, but the reality is something else. Many businesses are bracing up to automate the fulfillment processes to a greater extent. By automation, they don’t only refer to specialized software using AI, but also robots and dedicated hardware to perform the tasks more effectively and consume less time.
By looking at the market giants, the new businesses are attempting for a head-start and are planning to equip themselves with a fully automated IT infrastructure for fulfillment processes.
All in all, a full-fledged automated fulfillment center is among the priorities of all the businesses, regardless of their scale. A manager who worked for an e-commerce fulfillment services, India admitted that he has been working there for almost 20 years and he has seen the gradual shift from conventional methods to automated systems, and the results have been astonishing.
Why are they running after automation?
Those who have spent decades in shipping and logistics they only know how it does feel to do all the tasks manually. Not just that, the workforce required to keep a fulfillment center functioning is quite huge and expensive to maintain. There are several reasons why businesses are switching to fully automated fulfillment centers:
- Firstly, they considerably diminish the time required to process and order by replacing the human material-handling by an automated system.
- Among all the e-commerce fulfillment services, India, it is statistically proven that when businesses switch to automated fulfillment centers, they enjoy an overall 25% profit in the final productivity, 10-20% less space use, and 30% more efficient use of the stocks.
- In a conventional system, the average order picker can manage only around 75 picks per hour, compared to 300 picks per hour in automated conveyors!
- The accuracy level for automated fulfillment centers is about 99.99%, which is considerably more than that of the regular ones
Moving ahead, retailers who wish to stay competitive and beneficial should think about better approaches for fulfillment. As the requirement for powerful ways for arriving at the end purchaser develops, so does the requirement for digitalization of the flexible chain and automated fulfillment centers. As the world moves ahead towards an era of AI and automation, we might be very soon receiving over deliveries through UAVs!