Last mile delivery refers to the final stretch of time and space an order travels from a warehouse, transportation hub, retail location, or fulfillment center to its final destination. Last mile delivery accounts for around 28% of the total product transportation costs - which makes it easy to see how businesses spent over $86B on last-mile delivery in 2017.
One of the first companies than come to mind with last mile delivery is Instacart, who recently announced plans to provide 30 minutes or less grocery delivery. Gorillas is doing it in 10 minutes. As the competition for speed and efficiency is heating up, retailers are scrambling to figure out how to scale it without breaking the bank.
Not only can micro fulfillment centers get items to your customers faster, they can help you save money while doing it. In fact, micro-fulfillment solutions reduce costs associated with an order by 75% when compared with manual picking of the order. Let's take a look at what a micro fulfillment center is, how to use them, and who is using them effectively.