Traditional warehousing involves large-scale facilities located in strategic areas designed to handle high inventory volumes and fulfill bulk orders. These warehouses are often on the city outskirts to benefit from lower real estate costs and ample space. While traditional warehousing offers economies of scale and diverse product storage, it can be costly to maintain and operate.

Conversely, microfulfillment centers (MFCs) are small-scale, automated facilities strategically placed near urban areas. Designed for small, high-velocity orders, they provide faster delivery times. MFCs reduce transportation costs and improve efficiency by bringing fulfillment closer to consumers. These centers can also integrate with existing retail stores or distribution centers, further optimizing the supply chain.

Microfulfillment offers enhanced order accuracy, reduced labor costs, and increased customer satisfaction due to faster order fulfillment. Automation technologies like robotics and AI enable efficient picking, packing, and shipping, minimizing human errors. However, MFCs may have limitations in storage capacity and handling larger items.

While microfulfillment centers offer numerous advantages, traditional warehousing remains relevant in certain industries. High-volume retailers or businesses with diverse product lines may find traditional warehousing more suitable.