The grocery market is experiencing a shift driven by consumer behavior. They are becoming omnichannel shoppers buying groceries across several channels, online and in-store. Grocers such as Tesco have responded by improving the online experience.

The Dematic Micro-Fulfillment solution at the Tesco store in Bar Hill, Cambridge, England is a great example of providing consumers with the services they expect. The micro-fulfillment center is automation installed inside the store so online orders can be ready as quickly as possible — picked up in-store or delivered to nearby home locations.

Watch the full video and read excerpts below.

There are five key stages:

• The first stage is that we receive products into the micro-fulfillment center, just like we do at any other store in the UK.
• Second, we put those products away through the decant process at the decant stations.
• Third, that decanted stock is stored within the automated Dematic Multishuttle®, ready for it to be picked later on.
• Fourth, an online order is received, and the picking happens at the goods-to-person picking stations.
• And the fifth and final stage, we marshal the orders ready to be delivered to our customers or collected by them at the store.

When Tesco looked for its first micro-fulfillment center, it looked across the market at all the suppliers and ultimately decided to go with the Dematic because they have a proven track record. With Tesco having built out grocery e-commerce sites for the last 20 years, Dematic provided the best value for money when it came to the type of solution that we were looking for.

And Dematic and Tesco worked together to achieve the final design and implementation plan. As a result, implementation was smooth without impacting operation. Micro-fulfillment was right for several reasons. It fit the space available at the store. It could handle the order volume, and it gave improved order visibility.