Customers expect instant gratification when they shop. That’s why many people prefer shopping in a physical store. They can find what they’re looking for, make a purchase, and carry it along. However, the pandemic has made this type of shopping experience more difficult to provide. As a result, many physical retailers, small and large, have adopted what is known as a “dark stores” strategy. They use their retail space to store a large amount of inventory, fulfil orders. They also provide more options such as quick delivery and same-day pickup. Dark stores facilitate the processing of online orders within physical distribution centers, which may or may not be open to customers. Nevertheless, they significantly enhance various aspects of the retail experience, including convenient delivery and pickup options, as well as an expanded selection of products to choose from listing.
What are Dark Stores?
Traditional retail stores that have been transformed into local fulfillment centers are known as dark store models. Grocery stores, clothing labels, and home goods retailers are among them. Their layouts are designed and optimized for retail fulfillment of online orders. Picking and packing of all the ordered items take place in the dark warehouse. The customer either ship or pick up the orders. This gives retailers options for both local and outsider customers. The COVID-19 outbreak has had a major influence on the retail industry. To allow customers to purchase from a brick-and-mortar retail store without visiting a store, businesses are turning to dark stores as a future of stores. They provide the space in the dark warehouse needed to fulfill orders for shipping or prepare them for pickup without requiring customers to enter a crowded store.
Why Are Dark Stores Becoming More Popular in the FMCG Industry?
The FMCG industry faces a lot of unique concerns such as perishability and the need for a large number of SKUs. Managing SKUs and tracking perishability in a traditional store can be a time-consuming task. Dark stores meaning, on the other hand, focus primarily on click-and-collect functionality. They allow for better SKU control.
Dark stores are extremely efficient because they do not require a specific location or design for the shopping experience. They don’t need any space to display in-store advertisements. Furthermore, the dark store model can serve multiple online retailers at the same time. Dark grocery stores keep a large volume of goods in a smaller space. It facilitates easy picking and packing. Fulfillment of orders occurs in dark warehouses. It allows merchants to make the most of available space for easy picking. Instead of the customers, store pickers now walk the aisles to find the products required in the customer order.
Benefits of using Dark Stores
The advantages of using dark stores include the ability to serve local customers. And also to expand the customer reach at a lower cost. Here are a few reasons why dark warehouses are more than just a passing trend.
Stocking Space. Customers are not permitted inside functional dark stores. So, their layout can be designed to improve storage and picking capabilities. Improving storage capacity ensures a wider product assortment. Faster picking ensures that orders are filled more quickly without sacrificing order accuracy.
Stock Levels
Dark store models are significantly smaller than typical warehouses. So, it is much easier to keep track of inventory levels. Many dark stores also have Warehouse Management Software. It allows them to keep track of stock levels in real-time. This software also assists retailers in determining if they have too much inventory (known as “deadstock”) or not enough. This can result in stockouts. You can ensure that you always have an ideal level of inventory by streamlining the inventory control process.
Order efficiency
Dark stores can handle a big volume of orders because they are customer-free zones. So, pickers can also easily walk aisles without having to dodge shoppers and their trolleys. The activity is significantly faster than an end customer doing the same because the pickers are working on confirmed orders. And, they are more familiar with the layout. Dark store warehouse efficiency can be increased by automating fulfilment activities with the right technology, such as Warehouse Management Software (WMS).
Order consumption
Consumers are more likely to become long-term, loyal customers after they become familiarised with your brand’s speedy, trustworthy, and accurate delivery of items. Dark stores can easily provide customers with more delivery options. This results in increased sales and customer lifetime value.
Dark Store Order Fulfillment Models
For all types of retailers, dark store fulfilment is a strategic and productive alternative. However, to be fully sustainable, it should offer a variety of delivery and pickup options. Below are the three most typical delivery options for dark businesses.
1. Home delivery
Home delivery has become more common, particularly among local shops. Customers will benefit from fast, convenient, and frictionless delivery, especially when it comes to essentials. However, home deliveries can also be made by starting an online store and shipping orders to clients who are located further away.
2. In-store pickup
Many classic dark businesses have a designated pick-up space located near the front entrance. Customers won’t have to walk through the dark store to get their product this way. This provides flexibility and reduces delivery costs.
3. Curbside pickup
Customers can quickly pick up orders with curbside pickup. It typically consists of designated parking areas where a retailer staff will bring out the order. So the customer does not have to get out of their vehicle. This not only provides customers with safety during the pandemic, but it is also very convenient.
Dark Store Order Fulfillment Models
Dark stores will be the new way to conduct business. But it will not be without difficulties and adjustments. Dark stores, especially in FMCG industries, may cause supply chain disruptions and require additional infrastructure. Extending the current delivery and pick-up options is insufficient. To be truly effective, stores must plan their entire dark store strategy and automate wherever possible. They can improve the consumer experience and provide easier access to essential items. It also paves the path for the future of retail.
Future Of Stores: Dark Store Model
Automation and analytics will be essential for dark stores to meet the growing demand for 24/7, near-immediate delivery. This will lead to many variations on the dark store model, such as fully roboticized fulfillment depots and smart supermarkets.
All of these approaches require a broad selection of goods from a far-flung network of suppliers. Dark warehouse retailers must have complete visibility into all of their inventory at all of their locations. This requires advanced software solutions to manage and maintain these inventories.
How Can Pyrops WMS help?
Pyrops WMS provides a solution for multiple requirements associated with dark store operations. Some of them are real-time view of stock levels, picker route optimization, lot control, cycle counting. It also provides solutions to replenishments, EAN mapping, return management, pilferage management, SLA based order processing and many more.
Global Warehouse Management System (WMS) Market Information by Service Type (Software, Consulting, System integration, and Operations & Maintenance), by Application (Electronics, Pharmaceutical, Transportation & logistics, Retail, and Others) and by Region - Forecast to 2027OverviewA warehouse management system (WMS) is a software application, designed to support warehouse or distribution center management and staff.
WMS applications can be so complex and data intensive that they require a dedicated staff to run them.
WMS provides optimization, monitoring and control of complex warehouse and distribution activities such as yard management, dock scheduling, order management, inventory management, and others in an efficient manner.According to a recent study report published by the Market Research Future, The global market of Warehouse Management System is booming and expected to gain prominence over the forecast period.
The Global Warehouse Management System market is forecasted to demonstrate an exponential growth by 2027, surpassing its previous growth records in terms of value with a whooping, double digit CAGR of 14% during the estimated period (2020 – 2027).Growing e-commerce sector across the driving the growth of the market.
Hence, the greater efficiency and productivity while implementing WMS, which strengthens the supplier‐customer relationships.
However, High Implementation Cost of WMS solutions may hamper the growth of the market.Get a Free Sample @ https://www.marketresearchfuture.com/sample_request/2028Key Players:HighJump Software (U.S.), Oracle Corporation (U.S.), Manhattan Associates Inc. (U.S.), Tecsys Inc. (Canada), SAP SE (Germany), JDA Software Group Inc. (U.S.), LogFire Inc. (U.S.), Made4net LLC (U.S.), Softeon Inc.(U.S.), and Synergy Logistics Ltd (U.K.) are some of the prominent players profiled in MRFR Analysis and are at the forefront of competition in the Global Warehouse Management System Market.Competitive AnalysisGlobal Warehouse Management System Market appears to be highly fragmented and competitive owning to the presence of numerous large and small players active in regional market.
San Francisco, 21 May 2020 — “Warehouse Management System (WMS) Market Analysis By Regions (North America, Europe, Asia-Pacific, Latin America and Africa), Product, By Application And Segment Forecasts To 2025” Global Warehouse Management System (WMS) Market estimated to develop at a CAGR of 16.0% for the duration of the prediction.
The Warehouse Management System market on the source of Type of Application could span Foodstuff & Liquid Refreshment, Retail, Transportation & Logistics, Manufacturing, Healthcare, and Others.
The market on the source of Type of Function could span Consulting Services, Billing & Yard Management, Labor Management System, Systems Integration & Maintenance, Analytics & Optimization.
Get a Free Sample Copy of Report @ https://www.millioninsights.com/industry-reports/warehouse-management-system-wms-market/request-sample The subdivision of Analytics & Optimization is composed to grow by a CAGR of almost 19.0% above the prediction period, while the income funded by the subdivision of Systems Integration & Maintenance is expected to be the uppermost all the way through the similar period.
In an active supply chain ecological unit, warehouse working businesses have understood the significance of WMS software, such as this software precisely accomplishes their register.
Hence, growing alertness of WMS software between Small and Medium-sized Enterprises [SMEs] and the increasing acceptance of cloud centered resolutions of WMS software are important features motivating the demand for WMS software.
