Following Proven Success, Second Micro-Fulfillment Center Will be Built to Meet Massive Increase in E-commerce Demand
Tel Aviv (May 12 2021) – Fabric, a leading micro-fulfillment solution provider, and Super-pharm, Israel’s largest health & beauty retailer, announced today that following great success with what became known as “the world’s smallest automated fulfillment center”, they will be expanding their partnership.
Following the success of the partnership over the past two years and in order to support soaring demand for Super-Pharm’s e-commerce offering and same-day delivery, Fabric will more than triple the amount of orders it fulfills for Super-Pharm through its micro-fulfillment services. In order to support this increase in volume, Fabric will build and operate a second micro-fulfillment center that will fulfill thousands of orders a day to provide Super-Pharm with on-demand, same-day, and next-day delivery nationwide. The new site, located in central Israel, will work in tandem with Super-Pharm’s existing Fabric-operated micro-fulfillment center in the Tel Aviv metro area.
A testament to the ability of automation to scale and respond to unexpected spikes in retailer demand, Fabric was able to increase the number of orders being fulfilled out of the Tel Aviv micro-fulfillment center by up to 250% throughout the Coronavirus pandemic. This was achieved thanks to Fabric’s uniquely modular solution design, which enabled the company to add an extra picking station in a matter of hours, without the need for further construction or site closure time. Fabric’s ability to more than double its fulfilment capacity with little notice allowed Super-Pharm to continue serving their customers at scale during the height of the pandemic, despite the unplanned spike in demand.
In 2020 Super-Pharm Online was the most popular e-commerce website in Israel, with 24% of Israeli’s ordering from Super-Pharm online last year, according to a survey conducted by the Israel Postal Company. In a move that puts it on the global stage as an innovation-leader and signals its commitment to micro-fulfillment, the addition of this new site will see most of Super-Pharm’s online orders for home delivery being fulfilled using micro-fulfillment. With a strong focus on providing the best possible online experience that emulates the in-store experience, the expansion of the partnership will enable the health and beauty retailer to ensure very high order quality and to increase the speed of deliveries – all while ensuring profitable unit economics as the business continues to scale its online presence.
Fabric’s solution has enabled Super-Pharm to fulfill a much larger number of orders per day. Fabric’s micro-fulfillment solution has resulted in a reduction in fulfillment time, and an overall increase in the efficiency of the fulfillment processes. Due to the dramatic improvements in fulfillment efficiency in combination with the proximity to customers that the site architecture enables, Super-Pharm can commit to very fast delivery promises from the moment a customer places an order to the moment the order is delivered, including same-day.
“In order to provide the best possible customer experience, Super-Pharm needs to have a complex 360 degree logistics solution for picking and delivery” said Yossi Cohen, VP Organization & Information Systems at Super-Pharm. “The partnership with Fabric puts us at the forefront of innovation and enables us to pick orders quickly and efficiently. After a successful operation of the first site and due to the increase in activity we are expanding the partnership. We are expecting that the new site will contribute even more to improve the service and efficiency of our online activity, and it’s a partnership with the potential to continue growing and expanding over time.
“Expanding our partnership with Super-Pharm is a significant milestone for Fabric,” said Elram Goren, CEO and Co-Founder of Fabric. “As a returning customer, our expanding partnership is based on real and measured success, and we are thankful to Super-Pharm for their continued trust in Fabric. The past year has been challenging for many retailers who have been required to support such rapid growth in online activity. We are proud to be part of the infrastructure that supported this growth and look forward to continuing to enable the best online experience for Super-Pharm’s customers.”
Super-Pharm is the largest drugstore chain in Israel with 260 stores nationwide, and 70 stores across Poland. Super-Pharm’s focus is on health and beauty products and is the leading place for consumers for all things related to pharmacy, cosmetics, and body care. Super-Pharm has annual sales of $1.2 billion and is constantly looking for new ways to create value to their customers, offline or online, via new tools, brands and products.
Fabric enables retailers to offer same-day delivery at profitable unit economics, empowering retailers to drive revenue and customer loyalty with a network of micro-fulfillment centers that serve as local inventory hubs, close to end-customers. Leveraging advanced software, robotics, and automation, Fabric’s solution empowers retailers to drastically improve their consumer experience while improving operational efficiency and driving costs down.
Founded in 2015, Fabric has raised $138 million to date and is backed by Aleph, Corner Ventures, Canada Pension Plan Investment Board (CPPIB), Evolv (Kraft Heinz), Innovation Endeavors, La Maison, Playground Ventures, and Temasek. With offices in New York City, Atlanta and Tel Aviv, Fabric is constantly growing with over 200 team members globally and 20 sites under development/contract, including four operational micro-fulfillment centers.
Fabric continues its rapid expansion and plans to continue rolling out its operations in key urban locations, as it realizes its mission, to bring brands and online shoppers closer.