The last mile of e-commerce fulfillment is always the hardest. Corey Apirian, CEO and founder of Davinci Micro Fulfillment, is making that final leg an easier distance for housewares and other companies using a delivery system that can drop off packages as quickly as the same day of an order.
Davinci has been expanding the territory where it can offer same- and next-day delivery as it builds up a network to do two-day drop-off nationwide.
Davinci can service same-day delivery within 90 miles of its micro fulfillment centers; next-day delivery to 85% of the lower 48 states; and two-day to all of the lower 48, with a little longer to Alaska and Hawaii.
Micro Fulfillment facilitates last-mile delivery by setting up distribution centers nearer to major customer bases in particular geographies. Davinci’s six micro fulfillment centers operate in Fresno, CA, Denver, Dallas, Northern Kentucky, Jacksonville, FL, and Northern, NJ. As such, they are widely distributed but located at strategic distances from each other and near or in major markets.
Proximity is important in urbanized settings, Apirian said. A delivery facility near the recipient of a package, especially in the urban setting, simplifies fulfillment not only because of shorter distances to travel, an important factor, but also because navigation from a central point can be a lot easier than one entering a community from outside given everyday transportation challenges.
Still, locating huge distribution centers in key locations can be difficult. Opening a half-million-square-foot distribution center in a major U.S. city is generally infeasible because of a lack of real estate and the cost of operations. And that isn’t even considering community response.
Proximity is important in urbanized settings, Apirian said. A delivery facility near the recipient of a package, especially in the urban setting, simplifies fulfillment not only because of shorter distances to travel, an important factor, but also because navigation from a central point can be a lot easier than one entering a community from outside given everyday transportation challenges.
Any number of retailers are experimenting with different forms of last-mile delivery, from Walmart, which is trying to make it a service for hire that builds on its existing initiatives. Target, for its part, acquired Shipt, which is among the third-party purchase, delivery and fulfillment services available. Uber and other transportation companies have gotten into the delivery game. Still, even if there are other pickup and delivery services operating, they aren’t necessarily the best solution for companies that want a dedicated last-mile fulfillment operation, which is where Davinci comes in, Apirian said.
The need to enable fast delivery is something everyone in e-commerce understands, but the question is how to best get there and in an economical way. By gaining effective proximity to consumers who opt for delivery, Davinci facilities, through the company’s sortation function, provide a last-mile service to ensure a delivery gets moved through as direct a route as possible, Apirian said. Although other effective delivery systems exist, they don’t necessarily have the focus that a micro fulfillment system has to ensure that the last mile is accomplished with consistent speed and precision, he noted.
“A lot of people out there want to deliver same day but don’t want to use UPS and FedEx and be beholden to them,” Apirian said.
Davinci can accommodate online sellers, Apirian said, in ways that can, in many cases, better suit their business particulars. The company’s 50,000-square-foot micro fulfillment centers bring in goods and can quickly process them through facilities that use AI and other technology to maximize movement. At the same time, Divinci is adding more automation, with three of its MFCs scheduled for an especially thorough upgrade.
Some people want half-hour baby food and diaper deliveries and some groceries. For me, if I could get a case of water delivered to my home and I didn’t have to lug it to the car with a four-year-old, that would be amazing. But I think that you have to have a perspective. The key stat to consider is that 90% of Prime shoppers opt in for next-day delivery.
– Corey Apirian, CEO and founder of Davinci Micro Fulfillment
Divinci can accommodate online sellers, Apirian said, in ways that can, in many cases, better suit their business particulars. The company’s 50,000-square-foot micro fulfillment centers bring in goods and can quickly process them through facilities that use AI and other technology to maximize movement. At the same time, Divinci is adding more automation, with three of its MFCs scheduled for an especially thorough upgrade.
Even with rapid delivery as Davinci’s core function, the operation has to focus on real consumer needs, Apirian said. Speed is important, but so is a sense of what delivery form will satisfy consumers, he added.
“Some people want half-hour baby food and diaper deliveries and some groceries,” Apirian said. “For me, if I could get a case of water delivered to my home and I didn’t have to lug it to the car with a four-year-old, that would be amazing. But I think that you have to have a perspective. The key stat to consider is that 90% of Prime shoppers opt in for next-day delivery.“
So, he said, last-mile isn’t about speed for its own sake. Major services such as UPS and FedEx are fine moving things across the country. However, Apirian says, other delivery systems aren’t likely to deal with the last mile and final servicing of the consumer recipient with as much expertise and precision as can be accomplished via a micro fulfillment center.
“I don’t know if you need a toaster in 15 minutes,” Apirian said. “But at the end of the day, if I’m moving into a new home, and I’m excited and just bought a high-end TV to watch a movie, and I wanted a popcorn maker for movie night, same-day delivery might be a big thing. Really, it’s about the consumer experience.”
Across the full scope of its operation, Davinci works with clients to help them market, merchandise and deliver products within time frames that satisfy their customers. The company has expertise and services that can help clients effectively operate B2B, marketplace and direct-to-consumer businesses. And it can aid in the development of an online business by facilitating drop shipping and other functions effectively whether in a B2B, marketplace or DTC framework, Apirian said.
It still all comes down to the last mile, Apirian said, adding Davinci continues to develop technology and apply automation to advance that key last leg of a product’s journey to the home.
