- Massive decrease in footfall
- Low return on Stores at central hip locations
- Exponential Growth in Online Orders
- Ever-increasing Consumers’s Expectations
- Low-Profit Margins
Fortunately, there seems to be a silver lining. For several brands, dark stores (also known as fulfillment centers) have become strategically important in matching the ever-shrinking shipping time and superior customer service levels of major retailers like Amazon and Alibaba.
Why is a Dark Store Network Important?
The idea behind “dark-stores” was to have mini-warehouses close to customer locations to facilitate deliveries and make them quicker while keeping operational costs low.
- What is the consumer demand across the operational area?
- Which area is close to several demand hotspots?
- Of these areas, which have the lowest rent?
- Is the road network good around the location to ensure smooth stocking-up and picking-up of goods?
What is the Consumer Demand across the Operational Area?
Consider an FMCG Chain that operates in South Mumbai, the External Factors that hold 88% influence over demand for its products are:
- Population Density
- Commercial Store Density
- Entertainment Centers Nearby
Keeping in mind the identified set of external factors & their importance, the demand across the operational area is predicted.Locations with high demand that could potentially become Demand Hotspots are filtered out and pinpointed.
Which area is close to several Demand Hotspots?
Which areas have the lowest rent?
Is the road network good around the location to ensure smooth stocking-up and picking-up of goods?
The number of roads, traffic movement, jam factor, etc around a location is analyzed to assess the connectivity.
- Make Deliveries 1.25x times quicker
- Reduce per-delivery cost
- Cut down Operational Costs by up to 35%
- Increase Operational Efficiency by up to 40%
- Improve Consumer Satisfaction Rates