Exotec Launches Next Generation of Skypod System, an All-in-One Robot-Based AS/RS
The next generation of the company’s signature Skypod solution supports both each and case picking while integrating multiple value-added functions such as integrated buffer, perfect sequencing, and pick-and-pack.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Atlanta, GA, Feb 6, 2025 - Today Exotec®︎, a global warehouse robotics provider, announced the commercial launch of the Next Generation of Skypod®︎ system with higher performance, improved storage density, and advanced software features.
The Next Generation of Skypod comes with a number of design improvements including a new and more compact Skypod robot, a workstation for robot-to-robot picking, high-throughput Exchanger, and denser storage. These redesigns combined with new software features improve the throughput at a single workstation by 50% while also enhancing storage density up to 30% compared to the previous generation.
The key differentiator for the Next Generation of Skypod is the ability to handle both each and case picking, positioning Exotec to better address multichannel needs with a single solution. The system also natively supports a number of value-added logistics features that traditionally require external equipment and complex subsystems. This not only enables customers to simplify the flow of goods through the warehouse, but also significantly shrinks the system footprint by cutting down the need for conveyors, sorters, external storage, and packing stations.
Specifically, the Next Generation of Skypod supports:
Integrated Buffer: Next-Gen Skypod handles buffering within the system. Following order preparation at the Workstation, completed or semi-completed orders get automatically stored inside the racks until they are ready for outbound, or further consolidation. This helps reduce the need for staging areas or any other external buffer systems.
Perfect Sequencing: Next-Gen Skypod handles strict outbound sequencing prior to ejecting orders by using robots and the Exchanger. The robots group orders and deliver them in a specific arrangement to the Exchanger, which then routes the orders to outbound. This enables precise loading of pallets, containers, or trucks based on delivery routes, store planograms, or other unloading requirements, all without the need for external sorting equipment.
Pick-and-Pack: Next-Gen Skypod handles packing as an integrated part of the picking process. Operators pick directly into fulfillment containers, removing the need for manual packing operations downstream. This functionality pairs extremely well with right-size packaging solutions. These solutions can be integrated with Next-Gen Skypod to enable picking into right-size containers, significantly cutting last-mile costs.
“When designing the Next Generation Skypod, our goal was to create a solution that would set the industry standard of operational excellence and elegance for the next decade and beyond," said Romain Moulin, CEO and co-founder of Exotec. “We’re already seeing our customers reimagine their entire supply chain around the transformative capabilities of this innovation, from combining case and each picking operations to leveraging outbound sequencing to improve transportation costs. Witnessing this level of impact has been incredibly rewarding.”
Exotec developed the Next Generation of Skypod in response to evolving market needs and feedback from the existing customer base, which increasingly demands warehouse robotics to address a wider range of processes within the warehouse walls. Over the past two years, Exotec has sold and deployed the Next Generation Skypod system globally in stealth mode. The company has successfully secured over 20 projects worldwide, totaling $400M to customers including Oxford Industries (Tommy Bahama, Lilly Pulitzer, Southern Tide, etc.), Grainger, and E.Leclerc to strengthen their supply chain operations.
“We chose Exotec for its storage density and its operational flexibility. Robotic advancements have enabled us to set up a larger buffer area for prepared orders within the system,” said Maxence Maurice, CEO E. Leclerc Seclin. “Previously, I estimated that the customer journey, from arriving at the drive to leaving with their groceries, took between 10 and 15 minutes. Today, with the Exotec solution, it takes less than 5 minutes.”
For more information on the Next Generation of Skypod system, please visit www.exotec.com.
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About Exotec Exotec is a global warehouse robotics company powering the world's largest brands. The company combines the best of hardware and software to offer elegant warehouse robotic systems that drive operational efficiency, add resiliency, and improve working conditions for warehouse operators. 50+ industry-leading brands including Gap Inc., Carrefour, Decathlon, and UNIQLO trust Exotec to improve their operations across 100+ sites worldwide.
Walk into any high-velocity distribution facility and you'll immediately grasp the complexity: dozens of forklifts move in orchestrated patterns while automated systems hum along conveyor lines, all working to meet demanding throughput targets. Yet what remains invisible to the casual observer is how maintenance challenges can bring this carefully choreographed dance to a halt.
For facilities moving millions of pieces weekly, maintenance demands fundamentally different solutions. The traditional approach to material handling maintenance that works for smaller operations isn't just constraining productivity—it's holding back your entire operation.
Warning signs that you need an upgrade
For facility leaders managing 40+ forklifts and complex material handling systems, the warning signs often hide in plain sight. The first clear indicator that your current maintenance strategy isn't keeping pace with your high-velocity facility appears when equipment downtime increasingly affects your ability to meet throughput targets. This challenge is compounded by climbing rental equipment costs as you struggle to compensate for unavailable machinery. The human impact becomes evident when floor supervisors and staff begin expressing mounting frustration about not having the machinery they need available to do their job.
More concerning still, safety incidents related to equipment issues may become more frequent, creating both operational and liability risks. The financial strain finally manifests in mounting overtime costs because you simply don't have enough functioning equipment to run operations efficiently. These interconnected issues signal a maintenance strategy that needs urgent reevaluation and restructuring.
If these symptoms sound familiar, you're not alone. Many high-velocity facilities have outgrown the same maintenance principles they applied as a smaller operation, only to find them inadequate at scale.
The scale challenge
The complexity of a large facility creates unique challenges that make traditional maintenance approaches insufficient. Equipment diversity presents a significant hurdle, as larger facilities must manage multiple types of forklifts, automated systems, and specialized equipment, each requiring different maintenance expertise and parts inventories. Communication complexity also poses a major challenge—while information flows easily in smaller facilities where everyone knows the status of every piece of equipment, this informal communication breaks down in large operations with multiple shifts.
The scale of impact becomes exponentially more significant in high-velocity facilities, where a single forklift breakdown in a critical area can impact dozens of downstream processes. Maintenance timing presents another crucial challenge, as continuous operations and high utilization rates make it increasingly difficult to find maintenance windows, and waiting for equipment to fail is simply not an option.
Building a maintenance strategy that matches your scale
High-velocity facilities require a transformed maintenance approach, not just scaled-up traditional processes. This starts with dedicated on-site teams who develop deep facility knowledge and conduct preventive maintenance strategically during optimal windows. Smart inventory management of parts ensures critical components are always available without overstocking, while data-driven systems help track equipment performance patterns and guide future investment decisions.
Before investing millions in facility expansion or automation, consider this: Implementing proper maintenance strategies can boost productivity 10%-20% at a fraction of the cost of facility expansion or automation. This comprehensive approach leads to reduced equipment downtime, improved safety outcomes, and enhanced staff satisfaction by transforming maintenance from a reactive necessity into a proactive tool for operational excellence.
Ready to transform your maintenance strategy? Here are the key steps to implementation:
Start with a thorough assessment phase, reviewing safety incidents, analyzing current maintenance costs, and evaluating how maintenance affects facility key performance indicators (KPIs).
Develop tailored processes by establishing proper preventive maintenance procedures and implementing robust data collection protocols.
Structure your maintenance team effectively, with clear roles, communication protocols across shifts, and comprehensive training programs.
By taking this methodical approach to maintenance strategy, facilities can achieve operational excellence without the massive capital expenditure typically associated with major operational improvements. The key lies not in maintaining more, but in maintaining smarter.
In today's fast-paced distribution environment, your maintenance strategy can't be an afterthought—it needs to be as sophisticated as your operations. In high-velocity facilities. Maintenance isn't just about fixing equipment, it's about maintaining productivity, safety, and competitive advantage. The time to evolve your maintenance strategy is now, before considering more costly alternatives. Your facility's full potential depends on it.
About the Author: Cory Monroe is Regional Sales Director at Concentric, a national distributed power services organization specializing in maintenance and power solutions that deliver resilient and sustainable facility systems for critical power and forklift mobility.
By the numbers, global logistics real estate rents declined by 5% last year as market conditions “normalized” after historic growth during the pandemic. After more than a decade overall of consistent growth, the change was driven by rising real estate vacancy rates up in most markets, Prologis said. The three causes for that condition included an influx of new building supply, coupled with positive but subdued demand, and uncertainty about conditions in the economic, financial market, and supply chain sectors.
Together, those factors triggered negative annual rent growth in the U.S. and Europe for the first time since the global financial crisis of 2007-2009, the “Prologis Rent Index Report” said. Still, that dip was smaller than pandemic-driven outperformance, so year-end 2024 market rents were 59% higher in the U.S. and 33% higher in Europe than year-end 2019.
Looking into coming months, Prologis expects moderate recovery in market rents in 2025 and stronger gains in 2026. That eventual recovery in market rents will require constrained supply, high replacement cost rents, and demand for Class A properties, Prologis said. In addition, a stronger demand resurgence—whether prompted by the need to navigate supply chain disruptions or meet the needs of end consumers—should put upward pressure on a broad range of locations and building types.
The year 2024 was by all accounts one of struggle and perseverance for supply chain practitioners. No one was immune, from shippers and their third-party service providers, to the truckers providing freight capacity, brokers managing transportation, and technology providers seeking to deliver the next big tech innovation.
At this time last year, many in the industry thought the back half of 2024 would provide at least a ray of hope for a rebound. However, 2024 came to a close with many of the same pressures and challenges that marked its beginning.
Nevertheless, in a series of interviews with shippers, third-party logistics companies (3PLs), brokers, truck lines, industry associations, and analysts, there was a sense of cautious optimism about this upcoming year. That optimism is, however, tempered by a tough market as well as macroeconomic and political realities. Challenges remain—among them persistent excess trucking capacity, particularly on the truckload side; businesses delaying decisions on investment and expansion; an industrial economy that’s stuck in neutral; shifting supply chain nodes and flows; and shippers focused intensely on cost and looking to winnow down their stable of service providers.
Surviving a flat freight market
Jeff Jackson, president of the 3PL Penske Logistics, has seen many boom-and-bust cycles in his 30-plus years in the supply chain business. But he’s never seen a market like today’s. “Some call it a freight recession,” he says, “but [it’s] not really. Freight [volumes] have not retreated. It’s a capacity issue. There are still too many trucks out there chasing freight.”
He points out as well that persistent excess capacity has kept pricing depressed to the point that costs still exceed rates in the spot and contract markets. “That can only last for so long,” he says. “I’m not sure how much more [truckers] can take.”
One segment that remains solid, Jackson says, is the dedicated market, where a shipper contracts with a 3PL for a full-service dedicated trucking solution, including trucks, drivers, technology, and management and operating personnel.
Dedicated solutions, along with private fleets, are an attempt by shippers “to get more control over their supply chain” at a predicable cost and with consistently reliable service and capacity, Jackson notes. He is seeing a migration to dedicated, versus for-hire, that he believes will accelerate as a result of “nuclear verdicts” in trucking accident liability cases and the insurance crisis it has fueled.
“These nuclear verdicts are unsustainable,” he says. “You can’t listen to a big trucking company’s quarterly earnings call without hearing a reference to insurance premiums or claims being an issue. It’s a pretty steady conversation.”
Gary Petty, chief executive officer of the National Private Truck Council (NPTC), has a similar viewpoint on the rampant escalation of truck liability claims and awards. “There is no magic bullet to prevent getting sued at a nuclear-verdict level or beyond because the public views a truck accident as a driver-at-fault incident,” he says. The reality, according to Petty, is often the opposite. “The four-wheeled vehicles on the road are the ones causing the majority of accidents,” he says.
One area the NPTC and its members have focused on to protect themselves has been truck safety technology, particularly in-cab two-way cameras. “Those have been transformative; we have almost 80% penetration on the private fleet side,” Petty says. The cameras provide evidence of both fault and innocence in an accident, he says. Even more importantly, they provide a critical training and education tool to help drivers eliminate bad habits, improve skills, and increase safety.
Like dedicated services, private fleets have seen significant growth, and Petty expects it to continue. Private fleets today are a $300 billion business. (By definition, a private fleet is a trucking operation owned by a company that primarily focuses on manufacturing or distributing its own products, not on the trucking service itself.)
According to NPTC’s most recent annual market survey, the percentage of outbound shipments that moved with private fleets hit 75% in 2023, the highest level in the survey’s history. Overall, private fleets manage about 40% of the freight moving in the U.S. Some 942,000 companies now operate private fleets (which account for 47% of all truck fleets). Growth, as measured by the number of private fleet shipments, has averaged a little over 8% annually for the past five years.
Tough customers
As for the less-than-truckload (LTL) segment, the rise in nearshoring and reshoring is providing a welcome bump. “I definitely think we will continue to see growth [along the U.S.–Mexico border] in 2025,” says Chris Kelley, senior vice president of operations for trucker Old Dominion Freight Line (ODFL). “During COVID, shippers found out that having products on the water for weeks or months at a time puts their business at risk. So shortening the supply chain became an imperative.”
Kelley additionally expects to see shippers become increasingly demanding—particularly about timely, accurate information and precision service—in 2025. “The rigors of delivery to retailers have become far more stringent,” he notes. “They want freight delivered within specific windows and times. Specific purchase orders delivered on a specific day. Certain freight arriving in certain trailers.”
For these customers, delivering early is just as bad as delivering late, sometimes worse, he says. And delivering late is just not an option. “They can’t afford to have their product languishing somewhere, missing a sales window. It has to be at the warehouse or on the shelf on time,” he notes.
Where’s the warehouse?
Over on the warehousing side, Melinda McLaughlin, global head of research at Prologis, one of the world’s largest operators of commercial warehousing space, believes the base case for recovery hinges on the prospect of an economic soft landing.
“Any volatility that interrupts what the Fed [Federal Reserve Board] is trying to engineer would change that,” she notes. “But given a soft landing, we see a gradual recovery in 2025.”
McLaughlin believes that a reduction in volatility and uncertainty could help “unlock” investment dollars in the warehousing market. She says that the uncertainty and volatility seen in 2023 and 2024 caused a “slowdown” in decision-making for things like expansion plans and fleet and facility investments. Volatility from geopolitics, natural disasters, and labor disruptions “points to a more disruptive future for supply chains,” she says.
Given market conditions, Prologis customers remain tightly focused on cost, especially as energy, wages, and construction costs continue to rise. Companies are also increasingly pressured to incorporate sustainability measures.
Consumers’ habits will play a large, additional role on distribution operations, as companies will need to adjust to the multiple ways they choose to shop and receive goods, McLaughlin adds. “We will have productivity enhancements, but at the same time, service levels really need to rise because that has defined the industry long term,” she says.
As a result, McLaughlin sees a trend toward staging goods—and the warehouses that handle storage and fulfillment—closer to end-consumers. This trend has also increased the importance of last-mile logistics. “It is about bringing scale as close to the end-consumer as possible,” she notes. “There are tremendous benefits and cost savings, as well as carbon emissions savings. You have fewer miles traveled.”
Overall, McLaughlin is hopeful the industry will see “clearer skies” in 2025. “Some companies are still conservative and remain pretty defensive in how they are running their supply chains,” she says. “They are waiting for more clarity and hope to see that in 2025.”
Key focus areas: cost, tech, and labor
Managing costs is also top of mind for 3PL customers. Steve Sensing, president of supply chain and dedicated transportation solutions for Ryder, says his customers are homed in on continuous improvement and are looking to Ryder to help them drive out costs.
“Their volumes are down, and they have challenges in key markets,” he says. “So it’s really about helping them manage costs in a down market. And they are equally as eager to make sure we are prepared to support them when the volume returns.”
Kenneth Clark Co., a 3PL that specializes in heavyweight, oversized, and project cargo logistics, is hearing similar demands from its customers, which are mainly makers of heavy machinery for the construction industry. President Ken Clark, whose grandfather founded the family-owned company in 1960, says his customers are facing an inventory glut at dealers.
As a result, he’s detected a shift in how shippers are planning for and managing their freight needs. “Whether it is using sophisticated technology or just good tactical execution to [boost] efficiency, shippers want to drive down costs. They are looking for how I as a broker or 3PL can make it as cost-effective as possible and still manage my freight with good service,” he notes.
Likewise, Sensing is also seeing an increasing demand from customers to be adept at the latest technology. “There is always going to be new technology, so we have to make sure we innovate and stay on top of it. Automation is becoming a bigger part of what we do, especially in the omnichannel area,” Sensing notes.
Part of this focus on technology is driven by the tight labor market. “Customers are concerned about getting people,” he says. “So they look to us for both technology and automation solutions as well as innovative hiring and retention programs.”
An eye on fraud
Another issue demanding attention in the brokerage space, says Clark, is fraud, such as double-brokering, as well as cargo theft and other nefarious practices. “We have to prevent unlicensed brokers, working from places not friendly to the U.S., from operating in the U.S.” he stresses. “We have been fighting this for years. It’s a huge problem: brokerages in Eastern Europe, Asia, and South America directing the movement of goods in the U.S. Some are commodities but others are sensitive goods we probably don’t want our adversaries to know about.”
Clark, along with Chris Burroughs, the president and CEO of the Transportation Intermediaries Association, is working with association members, government agencies, and other parties to shore up the licensing process, establish tougher requirements, and bring more transparency to who is directing freight. “It’s an existential threat to the industry, and shippers are looking to the brokerage community to come together and solve the problem,” says Burroughs.
Make it simple
Outside of solving the fraud issue, deploying more and better technology, and lowering logistics costs, shippers are looking to partner with logistics providers that are agile and efficient, offer consistent service, and can quickly solve problems, notes Dylan Rexing, president of 3PL PFL Logistics. They also want to deal with fewer suppliers. Rexing cites one shipper who last year went from a stable of 500 carriers and multiple brokers down to 250. “And they are planning to reduce that even further,” he says.
“From the customer’s perspective, they are always looking to us for ways we can make their lives easier, whether it’s integrating new tools, optimizing their freight, onboarding carriers, [providing] real-time visibility, or simply doing the blocking and tackling of the business flawlessly,” he says.
“Trucking is not all that sexy, in my opinion, but it is perhaps the most critical piece of the supply chain, and we want our customers to have confidence their goods are moving safely and efficiently, and are showing up when and where they expect them,” he concludes.
Editor's Note: This article originally appeared in the December 2024 issue of DC Velocity.
In response to booming e-commerce volumes, investors are currently building $9 billion worth of warehousing and distribution projects under construction in the U.S., with nearly 25% of the activity attributed to one company alone—Amazon.
The measure comes from a report by the Texas-based market analyst firm Industrial Info Resources (IIR), which said that Amazon is responsible for $2 billion in warehousing and distribution projects across the U.S., buoyed by the buildout of fulfillment centers--facilities that help process orders and ship products directly to end customers, ensuring deliveries of online goods from retailers to buyers.
That investment is inspired by U.S. Census Bureau data showing $300.1 billion in a preliminary estimate of U.S. retail e-commerce sales for third-quarter 2024, adjusted for seasonal variation but not for price changes, compared to $287.5 million in the first quarter, and an increase of 7.4% compared with third-quarter 2023. In addition, e-commerce sales accounted for 16.2% of total retail sales in the third quarter of this year, the report said.
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Retailers should take advantage of their brick-and-mortar locations not only to satisfy the growing demand for “buy online pickup in store” but also to support microfulfillment efforts for e-commerce.
Retailers are increasingly looking to cut costs, become more efficient, and meet ever-changing consumer demands. But how can they do so? The answer is updating their fulfillment strategy to keep pace with evolving customer expectations. As e-commerce continues to dominate the retail space and same-day delivery has become the norm, retailers must look to strengthen their “buy online pick up in store” (BOPIS) and microfulfillment strategies to stay ahead.
BOPIS allows customers to order online and pick up items at the retailers' brick-and-mortar location, and microfulfillment involves housing a retailer’s products closer to the consumer to improve delivery times. While these strategies each serve different purposes, both are centered around getting the product closer to the consumer to ensure faster fulfillment. By combining the two, retailers will be primed to meet customers’ needs—now and in the future.
The store of the future: meeting customers where they are
While e-commerce has become the top way for many consumers to shop today, building the store of the future does not mean focusing solely on an online fulfillment strategy and abandoning physical stores entirely. Instead, retailers can take advantage of their brick-and-mortar locations, often already situated in “hot spot” areas, to support microfulfillment efforts for e-commerce. These locations can also cater to the growing demand for BOPIS options, with 61% of consumers choosing to shop with a retailer that offers BOPIS over one that does not, according to recent Körber Supply Chain Software research.
When developing a fulfillment strategy, retailers should look to be able to satisfy customer needs at any moment in time. With the surge in same- or next-day shipping, consumers are no longer as interested in walking around a store to locate products or waiting many days for their items to arrive. Whether it’s on their doorstep or at the storefront, customers want their products as quickly as possible. For example, Körber Supply Chain Software found 29% of BOPIS shoppers would like their products to be ready almost immediately or within 30 minutes after placing an order.
Shoppers know which retailers can satisfy their need for quick fulfillment and will likely gravitate towards those companies for their shopping needs. For example, I recently placed a BOPIS order with a retailer, and when I arrived later that afternoon, my order still had not been picked yet. The retailer let me know that though I was currently there, based on their picking process, there were still multiple orders ahead of mine. While we both saw the product on the shelf, they were unable to fulfill my order given the inefficient process, prompting me to question whether I would continue to be loyal to that retailer.
To be successful, the store of the future must leverage technology to make the physical store a powerhouse for BOPIS and microfulfillment. By leveraging tools that provide insights on inventory location and consumer demand, companies can make informed decisions on the best approach for seamless fulfillment. So, how can companies get started with future-proofing their stores
How to develop a winning hybrid-fulfillment strategy
While meeting consumer demand is top of mind for retailers, operational efficiency and cost reduction are also priorities. It is not enough to just deploy BOPIS and microfulfillment; companies must focus on finetuning these strategies to maximize success. Some ways to do so include:
1. Utilize the “only handle it once” (OHIO) method: In a warehouse environment, companies keep a close eye on how much it costs to touch a product before they sell it. Typically, it is most cost-effective and efficient for companies to only handle it once. A similar consideration should be used for fulfilling orders through BOPIS or microfulfillment. For a BOPIS order, this might mean the product goes directly from the backroom of a store to a customer instead of being stocked on the shelf. For microfulfillment, this might mean going from a microfulfillment site directly to the consumers’ door.
2. Deploy solutions for inventory visibility, management, and communication: To successfully fulfill both online and in-person orders, retailers must have full visibility into the inventory within their warehouses and store locations and across the supply chain. From a BOPIS perspective, stores may be competing with in-person shoppers for the same items on the shelf. Therefore, it is key for retailers to fully develop their backroom inventory strategy, which may mean keeping some inventory off the shelves. While it is important for shoppers in store to have access to the full breadth and depth of assortment, it is also important that shoppers who buy online can get their order fulfilled.
Some retailers have already started operating like the store of the future. Reformation, a sustainable clothing store, has deployed an innovative retail concept at their Boston location where they only showcaseone of each garment. If a customer wants to try on an item, they use a tablet to request their size, and a sales associate retrieves the item from the store’s large backroom and brings it directly to the customer’s dressing room. BOPIS could be added to this arrangement, so that customers shopping in the store will have their needs met and customers shopping from home can ensure they will not receive a late order cancellation or delayed fulfillment.
Furthermore, having full visibility into inventory at physical stores can be leveraged on the microfulfillment side as well. Given that brick-and-mortar stores are strategically placed in areas where there is high consumer demand, their backrooms can also function as fulfillment centers for online orders, ensuring that the product gets into the customer’s hands as quickly as possible.
3. Continually analyze fulfillment strategy and fine-tune operations: Consumer demand is always evolving, making it difficult to predict what will be the next shift in expectations. Given this, it is critical for retailers to continually collect and analyze data, such as stock keeping unit (SKU) velocity, to ensure that they have an effective strategy.
With the demand for faster fulfillment, retailers will need to utilize this data to fine-tune their operations and ensure they are able to access the necessary products. To do so, retailers must examine backroom operations to make sure stocking items can readily be picked and staged for pickup. This approach also makes it possible, and easier, for retailers to ship direct to the consumer if they want to provide that option.
Looking ahead: hybrid fulfillment strategies in 2025 and beyond
As we head into 2025, companies are going to increasingly focus on how they serve their customers and ways to stand out among their competitors. If they have not done so already, many major retailers will utilize both BOPIS and microfulfillment to effectively and efficiently meet customers where they are. Looking ahead, customers will continue to demand faster fulfillment and more convenient ways to shop, making it critical for companies to fine-tune their BOPIS and microfulfillment strategies to avoid falling behind. By utilizing the above tips, decision-makers will have the insights they need to properly stock their stores and microfulfillment centers and meet customer needs.