During the pandemic, the supply chain was both devastated and under a greater pressure than it had ever been before thanks to the increased demand for specific items and services that limited in-person contact.
Add in the advent of next day delivery expectations, environmental concerns, and increased competition throughout e-commerce and other industries, and you’ll see the enormous pressure on businesses to come up with innovative solutions to supply chain challenges.
The pandemic’s need for limited in-person contact acted as a massive accelerant for e-commerce and fulfillment innovations. After the COVID-19 pandemic forced retailers to get creative with curbside pickup and other low-contact options, consumers who may have been otherwise reluctant got comfortable with the convenience. As a result, most consumers have expressed a desire for continued access to these types of limited-contact services despite the restrictions being lifted and life returning to (mostly) normal.
So how have many businesses and the distribution and logistics industry as a whole continued to meet these demands creatively and with limited space, access, and footprints available? Micro-fulfillment centers.
What is a Micro-Fulfillment Center?
Micro-fulfillment centers are small facilities positioned near densely populated or urban areas and in close proximity to consumers residences. During the pandemic, many of these facilities sprung up in smaller retail locations that were not being used for in-person shopping, or “dark stores.”
However, some of these micro-fulfillment centers are a hybrid, having both in-person shopping as an option and operating as a micro-fulfillment center. Many major retailers use this “ship from store” method to fulfill online orders, allowing for faster shipment times when a store nearer the end consumer ships items rather than a more centralized warehouse.
Micro-fulfillment centers are a creative and generally effective solution to the consumer demand for next-day deliveries, localized business, environmental concerns, and the logistical costs associated with last-mile deliveries. However, they come with a unique set of security concerns in comparison to their warehouse counterparts.
Security Concerns and Challenges for Micro-Fulfillment Centers
Micro-fulfillment centers have grown in popularity thanks to the increased focus on rapid, local deployment of goods and the need for more resilient, agile supply chains and logistics solutions.
Micro-fulfillment centers must manage workflows, inventory processes, and order picking and packing in ways similar to a traditional distribution center but on a smaller scale. In some scenarios, this is the back room of a retail store. In some cases, this is within the confines of a dark store, or what was originally designed to be an office, a retail shop, or restaurant.
Theft While Inventory is In Storage
The most common threat and concern for warehouses and distribution centers of all sizes- theft of inventory products, equipment, and other assets- is always a security concern. This is especially prevalent when the items being processed at the micro-fulfillment center (MFC) are high value items such as electronics, phones, cosmetics, and luxury items. MFCs are generally located in more easily accessible areas by design, so this makes theft an even greater risk.
Thieves target sites based on their location, size, perceived accessibility, value of items contained, and security measures that are in place. MFCs are at a disadvantage compared to their larger counterparts due to the fact that some security measures, such as fences, gates, and isolation, are not available to them by design. The factors that make MFCs so successful in rapid deployment of goods can make them more of a target for thieves looking to raid their inventory.
Another concern? Inside theft. Businesses may take every precaution, screening and carefully selecting employees that they believe are trustworthy to work in their processing centers, but the distribution and logistics industry has been hit particularly hard by labor shortages over the past several years. This means that there are often temporary workers and outside staffing agencies providing workers on a day-to-day basis in distribution and fulfillment centers of all sizes. With laborers rotating through, along with third parties, some security procedures and standards can go out the window. Even the most carefully vetted employees can sometimes resort to theft from their employers. Employee theft costs employers up to $50 billion annually.
Cargo Theft and Theft of Goods in Transport
Cargo theft while goods are in transit is another issue for the distribution and logistics industry as a whole. Attacks on vehicles and their drivers are the primary sources of these thefts. Most attacks take advantage of a driver having little time to respond, so routine security training and awareness for the drivers themselves is vital.
Thieves have been creative and brazen in their cargo theft schemes, posing as police or warehouse personnel in order to stop and gain access to the trucks carrying goods they’ve targeted. As technology and security measures increase, so do the methods thieves use to target cargo while it is most vulnerable. Regular security risk assessments need to be conducted to help reduce the risks to both the cargo and drivers themselves.
Community Perception Issues
The overall downward trend in traditional brick-and-mortar retail shopping, the pandemic driving a massive shift toward e-commerce, and the failure rate of small retail and restaurant businesses has left a lot of commercial spaces and retail centers looking to fill empty storefronts.
Counties, cities, and towns alike have looked to find solutions to soaring vacancy rates, and for some, micro-fulfillment centers may be the solution. MFC’s allow for the usage of otherwise empty spaces while also providing jobs and infrastructure that supports e-commerce.
However, in some cases there is pushback from the communities themselves. From empty office buildings and storefronts being converted to goods distribution hubs to proposed reconfiguring of underutilized parking garages, communities may see these changes and the need for zoning changes to accommodate them as potentially having a negative impact on their community and daily lives.
Unique Security Challenges Need Proactive Solutions
The distribution and logistics industry relies on their clients’ perception of them as a safe, secure, and effective method of moving goods from one place to another, and for goods to be safely stored throughout the process. This means there are hundreds of moving parts, technologies, and people that must be effectively trained and following safety and security protocols. Even in the most highly regulated distribution locations, incidents can occur.
Traditional warehouses and distribution centers focus their security solutions on access control, outdoor assets, warehousing, and inventories. These same security concerns exist for micro-fulfillment centers, but they are often working within the system of an office building, shopping or retail center, or other repurposed commercial space. This means their security needs to meet their unique situation and layout.
MFCs will benefit most from selecting a security vendor that has experience working with all the above security scenarios. A company that is able to offer customizable, flexible, and proactive security solutions that can improve security outcomes while helping to both deter and disperse criminal and other liability risks is ideal.
Live Video Monitoring Helps Reduce Risk and Liability Concerns
Live video monitoring is an ideal security solution for micro-fulfillment centers. Using a combination of analytics-based cameras place strategically throughout the property, and trained security professionals monitoring the activity seen on cameras to verify that activity is within normal perimeters, theft, vandalism, and other criminal or unwanted activity can be deterred or dispersed in real time.
There are a broad range of factors that come into play when designing a security solution for any business. Every property asset requires its own analysis of factors including layout, demographics, density of location, existing tenants, and so on. Experienced security vendors should have a good grasp of all the above to truly understand the specific needs of an MFC and can work with property owners and managers to gain an understanding of what constitutes normal behavior patterns in and around the property. This information should then be relayed to trained security operators responsible for monitoring analytics-based feeds in real time.
With access to safety protocols and standard activity, Stealth’s security professionals can respond to suspicious or unwanted activity as it happens, sounding audible alarms that can disperse or discourage further action, or calling local police when necessary. Recordings of all surveillance are likely also available in the event they’re required for legal, insurance, or criminal purposes.
Live video monitoring is also helpful in that it prevents businesses from only discovering an incident days after it has occurred. However, in the event that something does only come up after the fact, analysts working with the security company can search recordings and piece together what’s happened, providing the needed footage.
Stealth can customize a proactive security solution for businesses across a range of industries, including distribution and logistics, commercial properties, office buildings, and retail and shopping centers. It’s these areas in particular that make Stealth’s experience a perfect fit for micro-fulfillment center security solutions. To learn more about how Stealth’s solutions can benefit your business, contact us or check out this quick video to see Stealth in action.
