How Can The Amazon Supply Chain Management Strategy Help Your Business?
- by eSellerHub
Amazon, the most acclaimed customer-centric company, has a lot for the retailers to learn. Primarily how they handle their large supply chain worldwide is indeed a knowledge worth inheriting. There are times when this retail giant faced tightrope situations; it’s their resilient strategy that kept them running.
Amazon supply chain management process can be classified into three major operational elements,
- Warehousing & distribution
- Delivery network
- Automation solutions
Let’s take a small tour of Amazon’s strategic planning and execution.
Warehousing & Distribution:
Amazon follows an explicit warehousing strategy that focuses on setting up warehouses in significant locations with the most population count. There are even mini-warehouses in the far to reach areas. It is to make sure that the majority of the customers can receive their delivery quickly, no matter the product ordered nor the distance to be covered. Their primary focus is to reach at the fastest time possible.
Delivery Network:
Amazon offers a wide range of delivery options and delivery durations to its customers. Some of them are the famous 2-day free delivery, and prime now – which allows for delivery within 2 hours or less. They implement traditional to super high-end delivery mechanisms from bikes to drones. They also amp up their game with the delivery routes of third party logistics like FedEx and UPS.
Automation Solutions:
Here comes the exciting part. They are never hesitant to try and test new technologies that can help them stand out to be the topmost e-commerce retailer globally. Numerous automation and robotics have been implemented to various departments like packaging, pick up from warehouses or returns, delivery, inventory management, and more. The ultimate aim is to function more efficiently and to quicken delivery.
Amazon Prime Air, a delivery mechanism using airborne drones it is yet to be ready for a full-fledged launch. It can cover delivery to customers present within 15 miles of the nearest air drone-available warehouse. Amazon, after acquiring Keva Systems in 2012, currently Amazon Robotics, has incorporated a considerable amount of automation tools. By this, they aim to streamline processes, enhance safety, and increase efficiency drastically. By adding robotics into their routine, Amazon stores up to 40% more in their inventory. Thus it becomes easier to fulfill Amazon Prime orders on time to get consistent and convenient positive customer experience.
Being a seller, you can try to incorporate the strategies that work the best for you. Each business needs a specific strategy to follow, a bit of expert advice to analyze and frame functional strategies properly. Esellerhub’s custom inventory management software can enhance seamless Amazon Inventory Management.
- Sync all Inventory – Esellerhub’s centralized inventory management software behaves as a central hub for your entire sales channels. Easily monitor every change in inventory as orders arrive, and products get restocked.
- Manage Multiple Warehouses -set multiple warehouses within your account. Also, you can view quantity, the product cost in each warehouse, and the overall inventory level of a particular product across all your warehouses.
- Manage Your Amazon FBA and SFP Inventory – Sync your Amazon FBA and SFP inventory to your web store and other additional channels to keep track of product quantity, and it’s performance.
Read More: Warehouse Management Challenges and How to Avoid Them
Esellerhub can also provide you with order management and shipping, eCommerce dashboards and reports, generate new listings, drop shippers management, automatic price update and many more. Get your own automated Inventory Management Software now. Call to make an appointment: +1 408 600 0534