Changes in consumer shopping patterns force retail players to change distribution strategies. Instead of relying on large warehouses far from residential areas, the company began testing small warehouses with fast-rotating stock in areas closer to customers.
This approach makes shipping per order more controllable and delivery within hours more realistic. However, this model requires high accuracy of demand data so that stock does not run out quickly or accumulate.
However, retail players consider this format to be suitable for dense areas that have stable demand patterns. A hybrid scheme between large warehouses and micro warehouses is predicted to become the dominant model in the future.