NanoFulfillment® - News & Blog

e-Grocery and Nanofulfillment

rhalket@nanofulfillment.com — Thu, 07 Mar 2024 21:43:06 GMT

Less Capital, Less Risk,

Tri-Temperature fulfillment

Why did microfulfillment struggle with e-Grocery orders?

Microfulfillment initially promised a cost-effective solution, but its actual implementation costs ranged from $6 million to $9 million, significantly higher than the anticipated $3 million. Grocers have yet to establish a proper network for decentralized fulfillment , and existing technologies face limitations in leveraging in-store and satellite urban locations effectively.

In-store cube and shuttle systems require manual picking for about 60% of SKUs, leading to consolidation challenges and inefficient use of floor space. Once installed, these technologies become immovable monuments, making relocation or redeployment difficult and costly. Additionally, cube technologies lack the ability to deploy active cooling storage totes, hindering tri-temperature storage and fulfillment without expensive manual interventions.

Operational microfulfillment sites struggle to meet expectations, processing only 250 to 400 orders per day, insufficient to justify investments in automation solutions. Confusion persists regarding data ownership in Microfulfillment FaaS offerings. While microfulfillment retains its place in the e-Grocery supply chain, it may not be feasible for urban locations, making dark stores a viable alternative.

The solution for decentralized fulfillment: Nanofulfillment

Nanofulfillment offers a unique approach, designed for portability and re-deployment, with affordable pricing and compact size, fitting seamlessly into small spaces. Rapid deployment minimizes disruption to retail environments, while innovative solutions enable handling of ambient, frozen, and chilled products in finished orders. Nanofulfillment provides ownership of data and offers operational leases with high residuals, allowing for the establishment of a network of Nanofulfillment Centers (NanoFC®’s) at lower costs and with less risk.

Key features of NanoFC® include:

Designed and patented for portability and re-deployment
Affordable pricing, including operational leases with high residuals
Compact size, fitting seamlessly into small spaces, either in-store or in new satellite locations closer to customers
Rapid deployment in less than one week, minimizing disruption to current retail environments
Innovative solution for powering active cooling totes within existing carton flow rack storage modules, facilitating handling of ambient, frozen, and chilled products in finished orders
Ownership of data, with included Scala software package offering full inventory control, including min/max holdings and zero crossing events, allowing for easy reporting.

Visit our NanoFC® at our Sarasota, FL tech center or booth A14013 at MODEX 24’ to learn more. Don't miss our session on the future of omnichannel growth in grocery at MODEX 24’!

Reach out to us today, schedule a visit to see the NanoFC at our Sarasota FL tech center, or drop by Booth A14013 at Modex2024 to meet our experts in person. If you are at the Modex show, you must visit our session on:

Future of Omnichannel Growth in Grocery: Sustainability meets scalability and customer satisfaction

An exciting topic delivered by industry experts

The Cannabis boom and the challenge of last mile logistics

Fri, 09 Feb 2024 15:34:44 GMT

The Cannabis boom and the challenge of last mile logistics

In recent years recreational cannabis has been legalized in 38 US states for medical use, and 24 states for recreational use. Canada has also fully legalized cannabis.

Recreational cannabis legalization has led to an economical boom, with demand outpacing supply, but supply chain challenges pose a real threat to cultivators, wholesalers, and individual retailers, eating into profits. Especially the increasing demand for online cannabis orders and last-mile delivery seems to be pushing this industry to its limit.

This doesn’t come as a surprise, as this industry is still in its infancy stages and being able to scale at the pace of industry growth isn’t that easy. Afterall, all vertical markets involved with E-Commerce are still struggling with unprecedented growth in recent years and are trying to optimize their supply chain operations, seeking for more profitable ways to distribute their products.

Common E-Commerce challenges:

Small order sizes and high SKU count
High growth projections
Same day / same hour fulfillment
Sub-optimal, slow manual order fulfillment process (pick, pack & ship)
Inventory management, track & trace requirements, compliance, blockchain integration

The list goes on, but the good news is E-commerce and last-mile delivery challenges aren’t new and the supply chain industry has had a few years to develop innovative and promising solutions, which the cannabis industry could now benefit from. With automation proving to be the magic-pill to retailer’s supply chain headaches, one other issue remains – last-mile delivery.

Fulfilling and shipping online cannabis orders in urban areas is simple, since the infrastructure to access a greater metropolitan area already exists, but how do you solve the challenges of accessing rural areas? Transportation cost often outweigh the benefits and how do you know what the potential of a regional market is, if you cannot access it ?

Now imagine cannabis wholesalers and retailers would be able to scale into these rural markets using technology, creating a hyper-local supply chain? Ship product from the warehouse on a weekly basis to de-centralized small storage and fulfillment pods. These hyper-local fulfillment pods would also allow for same hour delivery, miles, and miles outside of metropolitan areas or the closest warehouse.

A solution providing a powerful combination of complete product security, full control over the supply chain from cultivator to end-consumer, low cost per picked unit leveraging automation and the reach of hyper-local fulfillment? Stop dreaming…think #Nano. Think #Nanofulfillment

NanoFulfillment – State of the art technology that enables hyper-local fulfillment at a fraction of the cost of any automation technology in the market.

Creating a hyper-local supply chain has never been easier, and more affordable. And best of all, this is the first and only re-deployable technology of its kind.

Buy it, lease it, move it, repurpose it – full flexibility with NanoFulfillment.

NanoFulfillment – Enabling the world’s transition to an on-demand economy.

Phononic and NanoFulfillment Collaborate to Provide New Sustainable Approach to Hyperlocal Ecommerce Delivery.

Mon, 18 Sep 2023 16:00:15 GMT

Combination of technologies ensures fresh delivery in urban settings

September 18, 2023 — DURHAM, N.C. — Phononic , a global leader in solid state cooling technology, today announced NanoFulfillment Inc. , a pioneer of logistics automation, will be using Phononic’s Active Cooling Platform™ solution as part of a partnership agreement. Together, the companies have developed a new approach for efficient delivery of temperature-sensitive grocery orders to hyperlocal, urban ecommerce customers. By combining Phononic’s sustainable active cooling technology, that includes freezer and refrigerator totes, with NanoFulfillment’s automation technology, the two companies are bringing a uniquely redeployable, scalable and cost-effective experience for retailers and their end customers across North America.

In today’s market conditions, grocers continue to look for new ways to increase efficiencies and achieve profitable growth, and two key areas they are turning to are automation and hyperlocal, low-cost capital solutions. High-performing automation has historically been inaccessible, requiring massive, non-urban fulfillment centers situated far from the end user. However, the steady demand for same-day, temperature-controlled delivery has sparked a need and an opportunity for more efficient, fresh fulfillment and delivery options that expand the retailers’ sphere of influence and coverage while reducing large, expensive brick and mortar investments—needs Phononic and NanoFulfillment are primed to fill.

NanoFC ^® technology from NanoFulfillment is a scalable, modular and portable storage and fulfillment system that brings inventory closer to grocery customers and enables online orders to be fulfilled in under one hour. Its unique size and footprint—9’8” height, up to 1,375 square feet—allow it to be easily installed in available urban retail space, and its complimentary finance or leasing options offer a favorable alternative to high capex micro-fulfillment centers (MFCs), ultimately enabling companies to achieve the many benefits of automation at a lower cost.

Phononic’s cooling technology enables grocery retailers the ability to deploy automated solutions in an existing footprint, lowering operating labor and maintenance costs while adding flexibility through tri-temperature storage consolidation and delivery. Phononic’s complementary innovative Actively-Cooled Tote platform and connected services provide seamless operations within fulfillment automation systems like NanoFC ^™ , as well as dynamic response for inventory and order management.

“NanoFulfillment has deep expertise in the logistics and fulfillment automation space, with decades of combined leadership experience. We’re excited about the opportunity to partner with this well-established organization and marry our innovative technologies to address some of the most pressing needs of grocers today,” said Larry Yang, CPO of Phononic. “NanoFulfillment’s ability to create a network of hyperlocal neighborhood fulfillment centers, combined with our versatile cooling technology solves multiple use cases including flexible storage, demand-based energy savings and sustainability. We’re excited about the opportunity to enable faster, more sustainable, fresher deliveries to the end consumers.”

“NanoFulfillment’s alliance with Phononic and the combination of our technologies creates a previously unheard-of paradigm shift for the online grocery market,” said Francisco Serrano, CEO of NanoFulfillment. “We’re excited about the opportunity to bring scalable, affordable, automated fulfillment and delivery options to urban settings, and about the possibility of expanding our innovative solutions to other key industries down the road, such as pharmaceuticals,” said Ross Halket, CCO of Nanofulfillment.

About NanoFulfillment, Inc.:

With a relentless focus on customer experience, Nanofulfillment delivers cutting-edge yet proven intralogistics technologies to eGrocery and eCommerce retailers throughout North and South America. They believe that groundbreaking technology should be accessible to all businesses, regardless of their size. That’s why Nanofulfillment have committed themselves to delivering top-tier order fulfillment solutions at competitive prices. Nanofulfillment’s customer-centric mindset drives them to deliver unparalleled support, every step of the way. For more information, contact Nanofulfillment at info@nanofulfillment.com, visit www.nanofulfillment.com

About Phononic:
As the global leader in solid state cooling technology, Phononic is driving the world to a more sustainable way to cool. Its transformational technology reduces greenhouse gas (GhG) emissions and supports climate goals, while meeting the demanding performance needs of the market. The company’s thermoelectric devices and integrated products are mission critical to how people work and communicate; how automobiles ‘see’; to the protection and effective delivery of life-saving vaccines and drugs; to cooling solutions supporting grocery cold chain fulfillment needs; and to innovative methods that cool living and workspaces. For more information on the company, visit: www.phononic.com

How do you plan for fulfillment growth?

rhalket@nanofulfillment.com — Wed, 06 Oct 2021 14:01:30 GMT

Modular, Scalable, Portable Fulfillment Power

No 5 year "crystal ball" design-horizon required - Adapt to #ecommerce fulfillment at your pace with the NanoFC® from Nanofulfillment® Inc. #modular #scalable #portable #microfulfillment #nanofulfillment #lastmiledelivery #hyperlocal #inventoryplanning

Something Awesome!

rhalket@nanofulfillment.com — Wed, 06 Oct 2021 13:42:28 GMT

Something awesome!

Nanofulfillment, Inc. are extremely proud and excited to partner with stow Robotics in offering the highly innovative 3D e.Scala Goods-to-Person shuttle fulfillment solution in North America. In addition to being an integrator for the NanoFC, we are now excited to offer our clients a 3D shuttle order fulfillment solution, for businesses with the need for larger automation solutions
With clients already under their belt, stow-Robotics are moving fast in offering and deploying the latest innovations in Goods-to-Person fulfillment technology.

stow-Robotics are an integral part of the global stow-Group who provide best-in-class MHE and robotics equipment.

Together with stow-Robotics we are poised and ready to provide your 3D fulfillment solution throughout North America. Please reach out directly to stow Robotics through their web site: www.stow-Robotics.com , or reach out to Nanofulfillment, Inc. for more info. Together and with the full support of stow-Robotics, we stand ready to support all your fulfillment needs.

#microfulfillment #nanofulfillment #automation #innovation #warehouseautomation #orderfulfillment #egrocery #fulfillment #distribution #distributioncenters #lastmilelogistics #3Dshuttle

Is Micro-fulfillment Failing?

Mon, 24 May 2021 14:07:47 GMT

Overcoming the challenges to Micro-Fulfillment

Micro-fulfillment can be described as the concept of combining warehouse automation and retail stores in urban areas to locally fulfill B2C eCommerce and BOPIS orders The combination of automated order fulfillment technology, co-located in urban areas, brings inventory closer to the end-user, while leveraging the productivity and efficiency of automation.

This de-centralized fulfillment strategy enables retailers to instantly fulfill customer orders while reducing final-mile costs. Essentially, it is currently the best strategy out there for retailers to keep up with the emerging on-demand economy. There is an abundance of micro-fulfillment solution providers:

All these systems promise affordable automation, fast deployment, and maximum order fulfillment efficiency. But let us take a pause right there. Micro-fulfillment is a strategy, not a technology. Technology is only the enabler. Many retailers underestimate the challenges that come with these technologies.

Challenges:

Maturity:

o Micro-fulfillment technology is really just a down-sized version of existing warehouse automation technology. We haven’t reinvented the wheel!

Cost:

o The entry level cost for micro-fulfillment solutions is approx. $4,000,000 USD, service & maintenance not included

Size:

o This technology fits into 10,000 SF. But that’s only half the total space required for all related processes

Building Infrastructure:

o The building infrastructure requirements are often underestimated (floor slab, power, noise levels, etc.)

Operating Cost:

o The annual operating cost, combined with service and maintenance cost, can be excessive

Host Integration:

o The system host integration can be complex and requires many resources

Deployment:

o A typical micro-fulfillment system requires 10-12 months from contract execution to Go-Live

o Once built, it also cannot be redeployed

Slotting:

o How to slot the micro-fulfillment machine, to maximize its efficiency? What days-on-hand inventory delivers the right balance? How do I efficiently replenish the system?

Transaction Fees:

o Revenue based transaction fee model. Some MFC providers charge x % of each sales transaction to retailers

There is little doubt that the de-centralized fulfillment strategy micro-fulfillment creates, is the best strategy to capitalize on today’s growing E-Commerce market. But the real challenge is finding the right technology. Investment, time to execute, and life-cycle cost are the major factors that need to be considered.

So what is the solution? Do the most common solution providers have an answer to the challenges listed above? Or are they trying to stick a square peg in a round hole?

So now that we are a few years into the micro-fulfillment journey, what should retailers and solution providers alike be focusing on? If the strategy is proven, surely the focus must be on the technology?

What if?

- Solution providers would develop technology that focusses on tackling the common challenges?

- Micro-fulfillment technology would be affordable? Less than $1M USD?

- The technology could be deployed within days…and be re-deployable in future?

- Requires only 1,000 SF?

- You are able to adapt to building infrastructure requirements?

- Offer a standardized and simple host system integration?

- Offer a < 3 year ROI?

NanoFulfillment ^© made it our purpose to focus on exactly these challenges. A series of challenges which we have overcome. A paradigm shift in fulfillment strategy also requires a new approach to technology. Micro-fulfillment is an opportunity for all retailers to leverage the benefits of automation, not just the big guys.

Nanofulfillment ^© technology combines the benefits of automated system technologies with the purpose and operational requirements of a de-centralized fulfillment strategy. Think micro-fulfillment, but consider Nanofulfillment ^© technology as the best-fit solution.

#GoNano #GoMicrofulfillment #GoTomorrow

Centralized vs. De-Centralized Fulfillment

Mon, 29 Mar 2021 12:54:57 GMT

Centralized vs De-Centralized Fulfillment in the age of E-Commerce

The year is 2021. The year after our initiation to one of the most disruptive Black Swan events in history, - Covid-19. The Covid-19 pandemic has undeniably changed our world as we know it. While we as individuals look back at how we have adapted, from increasing our E-Commerce purchases to experiencing “zoom-fatigue” but also enjoying the convenience online shopping delivers, retailers are forced to question themselves whether they have to change their supply chain strategy. The question is not should they change how they do business, but how?

The paradigm shift that the supply chain industry is experiencing can be summarized as the shift from centralized fulfillment to de-centralized fulfillment. But what is the right strategy? How do retailers leverage new techniques, such as Microfulfillment and last-mile delivery without risking too much, but enough to stay ahead of their competition? While for some it appears, the writing is on the wall, others may disagree. Let’s take a look.

With centralization, a company elects to keep its entire inventory in one, or it opts to utilize a few major hubs that focus on a large region. Decentralization on the other hand utilizes numerous warehouses or stores that would concentrate on smaller geographic areas, bringing inventory forward and closer to the end customer. These locations are much smaller than a centralized warehouse, therefore less expensive and consequently offer better scalability and much faster order fulfillment.

In short, the focus for retailers has shifted towards speed and convenience. In the aviation industry we have already seen this paradigm shift. The same logic applies to the supply chain industry, which brings us to Microfulfillment.

As described by CB Insights: “Micro-fulfillment is a strategy retailers use to make the fulfillment process more efficient — from receiving an online order to packing it and in some cases offering last-mile delivery. The approach aims to take the speed of localized, in-store pick-up and combine it with the efficiency of large, automated warehouses. Further, placing micro-fulfillment centers (MFCs) within cities can substantially reduce the distance between an ordered product and a customer, making last-mile delivery cheaper and quicker.” https://bit.ly/2NZ3RR4

The sheer growth in this specific niche market is mind-blowing! There are now over a dozen companies offering automation to empower retailers seeking to shift towards Microfulfillment. Just to name a few:

The question retailers must ask themselves is should they embrace a Microfulfillment strategy? Both centralized and de-centralized fulfillment have merit. They are both proven strategies. However, the one major competitive advantage Microfulfillment boasts is the ability to add automation to fulfilment operations at a fraction of the cost of centralized fulfillment. Automation significantly reduces the cost of fulfilling orders and de-centralization closes the gap to last-mile-delivery. This advantage can be of strategic importance. Gone are the days where automation had to be a multi million-dollar investment.

Now retailers can leverage the benefits of a de-centralized fulfillment strategy and add automation to their operations. This is a game changer and opens new possibilities for small to medium sized companies to develop ever more competitive operations. It is specifically these SMB’s that the automated system suppliers have ignored in the past. And that is about to change!

After all, customers want speed and convenience. It is about time retailers rethink their supply chain strategy!

#ThinkNano #GoNano #De-CentralizedFulfillment #hyperlocal #Nanofulfillment

The Underestimated Challenges of Warehouse Automation

Tue, 02 Mar 2021 17:18:28 GMT

The underestimated challenges of Warehouse Automation

In our modern supply chain era, warehouse automation has become a fundamental cornerstone of any distribution operation. Automation offers; process optimization, increased productivity, operational profitability and also a more efficient use of labor. While the benefits of automation are apparent and appealing, the hidden challenges are often underestimated.

Automated systems for warehouse operations, compared to more traditional operations based on manual labor models, have a much higher level of complexity, making the successful installation of such systems very demanding. Contrary to the common perception of being a simple “plug and play” solution, automation has been a very sophisticated combination of technology and highly optimized processes. When not managed well, these systems quickly underperform, cannibalizing production and profitability targets while disappointing even the most loyal customers with low quality, multiple box shipments etc.

What you hear when considering automation is:

- Optimization of space usage

- Higher inventory management and order fulfillment accuracy

- Reduced labor requirements

- Improved throughput and productivity

What you typically will not hear are the ongoing challenges of automation:

- Complexity – These systems, from the data analysis and design phase through implementation, require a vast amount of resources, know-how, skills, time and effort

- Developing a customized design – Automated systems lack standardization. The average time it takes to fully develop the system design is 8 – 12 months

- Rigidity – Once built, you can’t easily take down or re-deploy the system

- Lack of modularity and scalability – High upfront investment and limited ability to scale

- High CapEx and upfront investment – The average automated system has an ROI of 7 – 10 years

- Complicated software integration – Software is the heart and brain of any automated system and the integration into a host system is often underestimated, with serious financial and operational consequences

- Proving the value of the business case – It typically takes 2-3 years following deployment to truly prove the value of an automated system

- High service costs – Impacts the OPEX budget

The benefits of automation are undeniable, but the effort it takes to successfully implement an automated system is often underestimated. Business and warehouse operations often learn the hard way. Thankfully, there is an industry trend towards standardization and scalability, with the purpose of simplifying automation.

The Nano FC ® fulfillment solution was developed with the purpose of targeting and eliminating these known challenges where they were being ignored, Providing automation that complements existing technologies while allowing any company, big or small to offer hyperlocal order fulfillment. The technology is designed to be:

- Re-deployable

- Standardized and pre-engineered – A system that scales with your economic growth

- Simplexity – Removing the complexity

- Affordable technology with a fast ROI, keeping the upfront investment low

- Proving the value of the system within the first few months of deployment

- Low service and maintenance cost

TIME TO PERFORMANCE

The Nano FC ® bridges the gap between profitability and complexity. Get your NanoFC® today

#GoNano

Scalable and Modular Goods-to-Person Technology

Fri, 19 Feb 2021 14:25:13 GMT

Introducing the NanoFC® X Series

As is often the case, automated fulfillment solutions are designed for a 5-year horizon. You struggle, sweat, and put your careers on the line to come up with an internal consensus and data to show what our business “will” look like 5 years after Go-Live. (Often forgotten is the “After Go-Live” part, meaning in reality, 6 to 7 years from project inception). If we take a look at most fulfillment automation plans, these automation projects need to pay back in <5 years to match the ROI you promised your board of directors, so let’s hope that your crystal ball was correct. Vince Lombardi stated not too long ago…”hope is not a strategy”, and it is not, especially when millions of your company’s dollars are on the line, with your name attached.

How many businesses do you know that changed exactly as planned over a 5–7-year period? I will venture to say…not many, if any! Throw in a Black Swan or two and your huge investment in a fulfillment monument may have been all for naught.

Introducing the Nano FC ® X Series

The unique Nano FC ® X Series comes in 5 different sizes, all geared to varying windows of available cube and performance, and all installing in ~1 week from the time it arrives on your dock, where we then roll it into place, and "snap” it into position…don’t like that position? Move the Nano FC ® in days, not months.

You may know with a ~50% chance how your business will look in 5 years, but you should know within a 90+% chance what your business will look like in 1 year…so lets take a look at how to mitigate some risk shall we?

To get to a 5-year design horizon for fulfillment automation, you take your best educated guess at growth in several areas, including;

Additional “Clients” (Retail stores, end-user’s, distributors, wholesalers, subscribers)
Additional Orders
Additional SKU’s (after you subtract the “dogs”)
Additional sku categories that may have a different form factor than current sku’s
Additional Lines/order
Additional Units/line
Additional Days on Hand Inventory requirements

Every one of these metrics requires an understanding of where you have been, and a crystal ball…. albeit an educated crystal ball, to decipher where you are going. A colleague once explained it like this: “Utilizing historical data to design your system is like driving while looking in the rearview mirror…dangerous, but better than being blindfolded”

At the C suite level, it is your job to mitigate risk and reduce that danger for your company. It is my job to present opportunities and options to aide in that quest.

Mitigating Risk by leveraging the Nano FC ® X Series

Let’s say today you need a storage engine more than a performance engine based on 1 year out. So, you purchase the X ⁷ (Accommodation for 2,706 totes, up to ~5,000 sku’s with divided totes, and a real-world performance of 226 lines/hr. with one FTE).

After ~9 months, you determine that you need to increase fulfillment performance, and yes, my sku base has grown. Do you purchase another X ⁷ ? Maybe…but let us analyze the need…perhaps you need instead 2 X ⁵ ’s (Each at 1,904 totes or 3,808 combined, ~7,500 sku’s with divided totes, and a real-world combined performance of 300+ lines/hr.…increase in sku availability & lines/hr. performance.)

So, do you need to purchase an X ⁵ ? No! You only need to purchase an X ³ at significantly reduced cost. Once delivered, and all within 1 week, we will relocate two storage modules from your X ⁷ into the X ³ , creating 2 Nano FC ® X ⁵ machines…. ready to perform.

The combinations are endless, but each combination does one thing for you…eliminates the risk of purchasing a costly fulfillment monument that may or may not work for you in the future.

Please reach out with any questions or comments… we look forward to working hand in hand with you and your teams to reduce your fulfillment risk.

The NanoFC® IS NOT just a product, It Is YOUR STRATEGY

Tue, 09 Feb 2021 22:40:22 GMT

The NanoFC® IS NOT just a product, It Is YOUR STRATEGY

So…It sure looks like our Nanofulfillment® solution is gaining a lot of interest. #Hyperlocal order fulfillment has a business case that demands attention. Why is that?

Ecommerce is now ~16% of our American retail sales and skyrocketing. The number is likely to hit 25%+ of retail sales by 2025
eCommerce is now a necessity not a novelty (‘cause ‘Rona?) Is this a Black Swan, or is it our destiny to shop a little differently than before?
Us consumers are a fickle bunch…we want our stuff and we want it now. The retailers and eComm companies trying desperately to satisfy that need, understand a quick and courteous fulfillment experience breeds; speed > loyalty > market share = growth
Recent studies suggest that customers are likely to shop at a competing online platform or even in-store if the product they want is not available same day
Building a network of; hyperlocal, high-speed, and portable FC’s is the answer to that demand

Low entry-level pricing
800 SF footprint
Easily fits under 11 ft clear height
Does NOT require a flat floor – self leveling
Delivers unmatched performance in this footprint…over 280 double cycles per hour available in Batch mode with only 1 FTE
Only re-deployable/portable GTP technology on the market (Patented)
Mature and reliable technologies orchestrated a little differently than the norm
1300 bin storage capacity can be optimized for up to 10,000 compartments
NanoFC-X version can store up to 3000 bins
Plug ‘N Play Interface. 1 x Power Cable & 1 x Network Cable
Pick/Pack/Ship ready. Can be interfaced easily with Pick Carts, AMR’s Conveyors etc.

The Paradigm Shift to NanoFulfillment®

Sun, 07 Feb 2021 15:34:44 GMT

The Paradigm Shift to NanoFulfillment®

Having been involved in many “Ice Castle” mega-fulfillment centers over the years, I often wondered why tens of millions of dollars were being spent on high-automation, only to handle much less than 100% of the required material flows inside the FC. It is rare that one form of automation will solve all the flow needs within a huge center. The end result was extraordinarily complex software and buffers needed to ensure right-place right-time delivery of the eaches. The expensive support resources required to execute and optimize the system is almost always overlooked and can drain your bank account for years to come.

With the dramatic rise in E-Commerce even before Covid-19, only a few of the top 10 retailers could afford to drop buckets of cash on these massive systems. And in a world post-Covid-19, you can expect that companies will have to operate on a tighter budget, thus limiting their spending on new automated systems We can therefore reasonably expect a shift to smaller, more affordable, high-performance automation.

We all started automating fulfillment systems with Pareto designs; one tech for the AA moving sku’s, one for the A movers, another one for the B’s and yet another for the C’s and long tail of slow-moving articles. Pareto designs are wonderful when slotted correctly and re-slotted often based on cube and velocity. That effort to ensure you have the correct sku in the correct technology at the correct time is immense and often is the first thing to slip when op’s gets busy. It also took some heavy lifting to get the software tweaked to orchestrate the movement of goods, so they all arrive at a consolidation point at the same time to fulfill the individual orders.

Then came the “matrix” solutions of any sku to any pack/put station at precisely the correct time. Again, millions of dollars for software, hardware and an even more urgent need to manage the system continuously. As system complexity grew, so did their acquisition and support costs.

And these mega-centers are so big, that they can’t be located near their targeted audience because either the space doesn’t exist, or the space is unaffordable. They find themselves in large fields near small towns…miles from the customer. What is the benefit of being able to possibly fulfill and order within 1h, but not deliver it? I am simply not leveraging my fulfillment speed and capability, as I still face the challenge of being in a sub-optimal location. And above all, these systems are too expensive! It’s comparable to flying in the late 50’s. While it was an amazing experience for those who could afford it, most people simply could not. Small to mid-sized businesses have been categorically ignored by large automated system suppliers for decades. That is about to change!
Now, come with me to the not-so-distant future where these Mega-Centers are like dinosaurs. Monuments to Supply Chains Past. Inflexible and averse to change.

These centers are too far from their clients and unable to make a healthy and sustainable profit when sending hundreds of delivery vans to cover a 200+ mile radius. Next day delivery turned to same day which has driven a demand for delivery within hours of order. This model is not sustainable or possible in any way when you are located many miles from your clients.

What if?

What if these mega centers switched back to case picking? The average worker can sling about 100 cases per hour, average case = 8 units, That’s 800 eaches/hr. (About the same as a high performing, high cost and complex GTP …plus you still need the FTE)!
These Mega-Case Centers can pick cases at a high rate, fill up less vans, and deliver directly to a network of neighborhood fulfillment centers…hyper-local and with a very clear understanding of what my particular neighborhood buys every day, every week and every peak. Let the de-trash and decanting occur at a slower pace in a smaller way right at the localized FC.

Technology comparison

What if these hyper-local FC’s were affordable, high-performing, portable, and could fit into that restaurant that just went bankrupt on 5th Ave, or that half-empty mall in Etobicoke that is positioned perfectly for bicycle/scooter delivery to that 10+ mile radius of demanding customers. What about an empty downtown parking lot? What if we could pack all the benefits of automation into a smaller, more compact system, actually designed to fit into hyper-local areas with small footprints and low ceiling heights?

I am often asked how a tiny fulfillment machine can have all the sku’s I need for my clients. The answer comes from smarter minds than mine…The network of machines will be sized and placed so that an incomplete order from one system can draw on multiple neighboring machines.

If you are tracking with me so far…welcome to the Nanosphere!
Our NanoFC® is the result of several years of hard work by some of the leading minds in logistics. Some of the best logisticians and engineers I know have pulled together a few mature technologies into a paradigm shifting Pick/Pack/Ship Goods-to-Person machine that is portable.

NanoFulfillment…Putting automation in your pocket.

How to efficiently Automate your Meal Kitting Operations

Sun, 07 Feb 2021 15:34:42 GMT

How to efficiently Automate your Meal Kitting Operations

Meal kit food delivery services are becoming more popular and have experienced significant growth in recent years. Especially 2020, the year of the global Covid-19 pandemic, has led to a sharp rise of meal kit service providers and a high demand for such cooking alternatives.

Afterall, it makes perfect sense. Time is always of the essence and there are several benefits that come with meal kits:

Fast and easy to prepare, thereby giving us back precious time
Healthy food dishes that support a healthy lifestyle
Competitive pricing compared to traditional grocery shopping
Great variance in dishes and meals

Consumers enjoy speed and convenience, and meal kit solutions go hand in hand with the on-demand economy. However, while sales are up, the business model of preparing meal kits is less profitable. This is due to a combination of logistical challenges:

High fulfillment cost – very labor-intensive picking process
Significant demand fluctuation
High cost for last mile delivery
Storage and handling of fresh and frozen products needed for meal kits
Warehouse space and operational efficiency

Most commonly, meal kitting operations are manual. The current operations are based on a pick and pass fulfillment model, following the person to goods principle. This limits order fulfillment efficiency as pick rates max out at 80-100 units/h per operator. Furthermore, to be successful, meal kit providers have to offer a wide range of meals and ingredients, which directly increases SKU count and requires more storage capacity. Simply put, manually fulfilling meal kits is not efficient and can’t keep up with growth and demand.

In conclusion, if person to goods is inefficient and flow rack storage is sub-optimal, why not introduce an automated system solution that enables goods-to-person picking and provides high storage density?

Nanofulfillment® combines both goods-to-person picking and automated storage. It’s the perfect solution to make meal kitting operations more profitable:

Improves picking productivity by 400%
Significantly reduces storage capacity and can hold up to 1,000 SKUs
Requires only 800 SF and 10’ ceiling height
Operates in ambient and refrigerated temperature zones
ROI < 2 years

Nanofulfillment® significantly reduces order fulfillment cost, thereby increasing profitability. And our NanoFC® is scalable and re-deployable, which makes it easy to keep up with future growth while keeping the initial CapEx or monthly OpEx low. This turn-key solution is installed and operational within 1 week and can be re-deployed at any time.

It’s time to think outside the box and add value to your meal kitting operation – Get your NanoFC® today!

Nanofulfillment® – Enabling the world’s transition to an on-demand economy