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E-grocery defined

Categories: Key Term

A micro fulfillment center (MFC) is an automated fulfillment center, with footprints typically ranging from 10,000 to 20,000 square feet, with some as small as 5,000 square feet. MFCs can be co-housed inside an existing store or placed in a smaller warehouse space in an urban location. Micro fulfillment centers help reduce transportation costs and enable shorter delivery times because they are located closer to customers.
Robots as a service is an economic model where customers lease or buy subscriptions for robots use instead of buying them outright as a capital expenditure. This model is great for companies experiencing seasonal swings in volume.
A term favored by Walmart for their small format, automated dispense systems. These system are located close to customers to solve the speed of delivery ‘last mile’ problem. They can contain three temperature zones and automatically dispense order to the customer when they arrive at a kiosk. Think convenient negihborhood ATM for your groceries. The RADS are fulfillled from MFC’s, Dark Stores or CFCs typically via van.
Orders per day is the number of orders sold by a store on a daily basis. This is important for sizing an automation system.
A self-service supermarket is a single channel. A self-service supermarket that also supports online ordering is omnichannel. You can buy through either the physical store channel or the online channel. Novastore by Alert Innovation is an example of an Omnichannel Fulfillment Center.
Novastore is an Alert Innovation term for a store architecture and associated supply chain logistics. The strict definition for Novastore is as follows: a supermarket with an automated packaged-goods market (a.k.a. “center store”) and an optional self-service fresh-goods market (a.k.a. “perimeter departments”). It automates the center store and allows the grocer to focus on customer experience with produce, meat, dairy, bakery, cafe, etc. A key component of the Novastore architecture is each level replenishment in sub-totes from a Market Distribution Center (MDC) to the store.
A geographically local distribution center (DC) that is part of the Novastore architecture. The MDC sits between the DC and store. The MDC serves many stores in a region and provides less than case level replenishment in tote/subtotes to stores in that area. The key advantage of the MDC is more efficient replenishment of stores than traditional case-level replenishment.
A local fulfillment center is a Walmart term, others may use MFC (micro-fulfillment center) as an analogous term. It includes an automated replenishment system to provide automated picking of orders, storage and dispense at the store level.
Latency is the time between when an order is submitted and when it is ready for pick up or delivery. This is especially relevant as customer expectations move from placing an order the day before picking it up to same day (1-2 hr) pick up or delivery. This is a forecasting and inventory management challenge. Make sure the solution fits the real-world!
Last mile is defined as the very last step of the delivery process when a parcel is moved from a transportation hub or warehouse to its final destination, usually a personal residence or retail store.

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