We started this entry by explaining the concept of Dark Store and how it is becoming fundamental key to the future of retail logistics operation by offering a solution that integrates omnichannel for storage management designed for the boom of the
e-commerce in the region.
What are dark stores?
The term dark store refers to a retail distribution center or store that serves only customers of online purchases. In general, it is a warehouse that is used for order preparation, as a point of delivery for those stores that offer click and collect or a mixture of both.
This new logistics trend has helped companies lower their cost in storage, distribution and logistics operations. Dark stores are expected to grow by 2021 to more than 60% in different segments of e-commerce.
The transport and logistics sector has undergone a profound transformation in the last year. This is mainly because the e-commerce industry grew 66%
in Latin America during the pandemic, and internet users reached 60% of the world's population,according to data from Euromonitor International, a market research company.
This trend arises from the contingency caused by Covid19, in which manufacturers, distributors and consumer stores suddenly had to stop their operations. As a result, the logistics chain was forced to re-evaluate its objectives and establish new models in order to reach, as soon as possible, a confined, concerned and online end consumer 24/7.
Companies reinvented themselves to adapt to this high-demand context; implementing technological innovations focused on logistics services and use of time indicators that positively impact internal communication, operational flow and, of course, customer service, making your process more agile and delivering in the optimal conditions the product or service, main demands by hyperconnected consumers.
Opportunities always arise in times of crisis, and the prominence of dark stores,becomes visible as a new trend in the ecommerce sector to streamline purchasing processes. A dark store, or "hidden warehouse",is a logistics warehouse used for the preparation and subsequent shipment of orders online,ideally located near the consumption points and with fleet arrangement for immediate deliveries.
Benefits of dark stores
Additional capacity. They give web stores the ability to prepare orders, deliver and pick up products in areas with high order density or traffic restrictions.
Greater product range. Any website can have extra physical storage space, so increasing the catalog is much easier.
Increased availability. Because logistics operations are dedicated to preparing orders that are placed online, your view of stock levels is much clearer and therefore have better product availability than an individual solution.
Greater efficiency. Adopting more technology in the procurement, warehouse, and selection stages have the ability to increase the number of units being delivered while driving more efficient operation.
Higher quality. They handle stock turnover excellently and have specialized operating areas for each type of product, including perishables, cold ones or merchandise that does not require particular conditions. This is very useful for online supermarkets.
Improved picking processes. The technology used ensures that these processes are efficient in personnel, quality, efficiency and productivity measured in production/hour/employee. And an increase in quality at the time of merchandise collection prevents errors in later stages of the chain and the costs that come from them.
Operation 24/7. As they are not restricted by opening hours regulations imposed in traditional retailers, websites can operate logistically and deliver 24/7/365. Orders can be delivered at the most convenient times for buyers without limitation.
Centralized route planning. By using the most efficient means of delivery, adapted to the regulations of each city (electric/pedestrian/conventional) in conjunction with software and route optimization systems,the best and most efficient delivery times areensured and offer total solutions in logistics in the last mile.
Opportunities for new products. Dark stores open up opportunities for retailers to offer new products that consumers have so far not found in physical stores (if offering both channels) due to space constraints and store designs.
What are the main challenges of dark stores?
They must be strategically located allowing for faster and more flexible response, space characteristics (dimensions and vehicle access for loading and unloading parcels), merchandise management technologies and picking optimization,
are a disruptive model that is allowing companies to solve the intricate mazes of logistics while increasing their sales
In Latin America, this market is currently led by Brazil, Mexico and Argentina,and projects significant growth in Colombia and Chile. The model is driving various companies and businesses to grow in an organized manner, so by 2021 it is expected to grow by more than 60% in different segments of e-commerce.
The final question for our reader is Do you think the dark store trend will continue after COVID19?
Sources : : https://www.america-retail.com/supply-chain/supply-chain-la-revolucion-de-los-dark-stores-en-latinoamerica/
https://www.esic.edu/rethink/tecnologia/dark-stores-la-problematica-de-la-ultima-milla