Because of this trend, the centralized warehousing model is experiencing a transformative shift, increasing the demand for micro-fulfillment through micro-warehouses, back-of-store distribution centers andEssentially, this has led to the rise of small-sized warehouse/distribution centers strategically located in urban areas, which play an integral role in last-mile delivery.
In short, micro-fulfillment, with its proximity to customers and speed, can reduce customer attrition and increase margins.By fulfilling orders through small-footprint micro-fulfillment centers, businesses can cut down the distance that goods need to travel. This not only translates to cost savings—especially in light of the surge in gas prices—but also mitigates challenges associated with moving items vast distances.
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