Micro Fulfilment Center (MFC) – The Current Reality - R R Padmanabhan, Director - Exim Academe

Micro Fulfilment Center (MFC) – The Current Reality

Last week, I visited my daughter living near my residence.  It was a evening and we planned for dinner at her home.  I felt like having banana after my food in the night.  My son in law searched for banana at home and found that they ran out of stock. So, he ordered bananas online.   In another half an hour so, bell rang.  The bananas were at the doorsteps.  How was that possible?  Micro Fulfilment center is the answer! 

Large e Commerce companies like Amazon and Flipkart hire warehouses to stock their goods. Since volumes are big, huge spaces are required and such large spaces are available only in suburbs or outskirts of main cities.  While this is feasible under the present circumstances, it presents logistics challenges.  Last mile delivery takes extra time to reach.  Particularly, in India, when we order online, the time promised is 4 to 5 days, but we do get the products within 2-3 days. 

Our shopping habits are changing very fast.  From ordering consumables, slowly habits are changing to buy even fruits, vegetables and groceries like in my own case said above.  Items like these are immediately needed for consumption.  But then, if the deliveries have to be executed from outskirts located about 50/60mkm away from main cities, the deliveries are not possible.

Typically, MFCs are of 2000 to 5000 square feet, fully automated to achieve maximum efficiency and very importantly, located within the cities.  Such small spaces are possible to find within cities.  So, once the order is received online, depending upon the area of order, the MFC is activated of the order and for delivery.  And there you have the order delivered to you within the minimum possible time. 

This is the trend that affords both job and business opportunities for youngsters entering the field.



R R Padmanabhan,
Director - Exim Academy




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