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Assessment of micro-fulfilment strategies

07 April 2022

CENTRALISATION HAS been a critical question for many network developers over the years. In the case of grocery fulfilment, the benefits of central order orchestration are significant – however, the concept is not without flaws.

Many of the benefits stem from the ability to build a more comprehensive, more robust solution that has a high level of resilience in a setting that is tried and tested, made fit for purpose and free from customer traffic. The investor can think over a longer timeframe as well-meaning that they may justify writing investment off over a more extended period. Still, it also enables them to plan upfront for future changes, de-risking their business for the future.

On the downside, the investor loses vital speed. Not the pace to pick an order, but they lose some proximity to the customer. While there are some benefits in the central orchestration of last-mile delivery routing over more expansive geography than a single store, the problem is still significant.

Whilst orders are picked overnight for next-day delivery, we have less of a problem, but this looks set to change as we have set out. Therefore, centralised orchestration prevents the retailer from essentially entering this market. This may be unacceptable for the investor. 

TGW’s award-winning team of industry experts has decades of experience designing, managing, and implementing materials handling strategies for clients worldwide.

The team’s approach combines proprietary research with expert management to deliver strategies and solutions which target superior performance and precise outcomes. The team believes that more predictable and repeatable performance can be achieved by thorough market research aimed at removing human behavioural biases in so far as possible. As markets evolve, these strategies are continuously refined and updated to adapt to dynamic market conditions and incorporate ongoing research.

You can see TGW’s whitepapers here: https://www.tgw-group.com/en/industries/grocery/egrocery/mfc-strategies

 
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