Robotic Intelligent Fulfillment Services
“Green is Beautiful; Small is Fast.”
Robotic Intelligent Fulfillment Services
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“The warehouses are in themselves a masterpiece of AI technology.” M. Ianstiti & K Lakhani, 2020. Competing in the Age of AI
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In Korea, three categories of “Quick Service”, i.e., fast delivery, are now offered: three-hours“immediate” delivery, the same-day delivery, and early morning delivery.
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Such a last mile delivery as “Quick Service” has emerged as one of the key competitive advantages for the entire community of e-commerce industries, regardless of target markets and enterprise sizes; this is one of the reasons for the fatal accidents of delivery men and other employees.
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Korean consumers in general, young ones in particular, tend to accept extra prices for those “quick” services; moreover, the quality and speed of delivery determine the decision-making of consumers together with the quality and price of delivered products.
Centralized Fulfillment vs Micro Fulfillment
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The concept of fulfillment instead of warehouse came into existence due to the initiatives of Amazon.
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Since Amazon’s inception, typical fulfillment centers have been centralized by installing huge warehouses (larger than 65,000m²) in the suburban area, which result in higher transportation cost and longer delivery times: in Korea, Market Kelly’s Kimpo site (85,000m²), Lotte Global Logistics’ Dekpyong site (129,388m²). Micro-fulfillment services recently emerged with the concept of “closer to the customers,” lower capital expenditure cost and less time to build.
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The prime features of MFC against CFC are its location in the middle of cities and its small size with innovative technology to enhance performance, accuracy, and cost reduction.