Making simple pickup, delivery and eCommerce experiences for our customers is a very complicated task. To deliver these services, we need an efficient network that connects physical assets (stores, distribution centers and fulfillment centers) to move goods to where our customers live. This network is supported by complex logistics services, payment and vendor systems, IT support and a nimble supply chain.
All of this is in service of one goal: to make sure goods move quickly from a customer’s online shopping cart to be ready for pickup at their corner shop or delivered to their front door in a safe and responsible way. That goal is the same, whether at a bodega in Mexico or a kirana in India. And the farther customers live from our stores and facilities, the more infrastructure is needed to reach our customers where they live.
In markets like China and Chile, we are investing in specialized distribution centers, called cloud depots, that allow us to deliver directly to consumers. In a recent pilot, our cloud depot in Ningbo, China, handled close to 40,0000 orders for one-hour delivery before the physical store had ever opened. These results are exciting, because they’ll help us service more Chinese customers faster than we could before.
In Chile, we operate six micro fulfillment centers that serve as innovative solutions providing basic necessities to families within a 90-minute delivery window. These unique facilities hold a curated assortment of basic necessities making it possible to deliver in such a rapid way. We’re also thrilled about Chile’s recently-announced hybrid supermarket and distribution center, Omnicentro. This new format allows customers to choose between visiting us physically or shopping online.