Skip to main content
BlogsYard Trucks

Amazon: Changing the Face of Logistics Forever

By September 24, 2018March 10th, 2020No Comments
, Amazon: Changing the Face of Logistics Forever

With the Growing Presence of Technology, It Makes You Wonder How the Future Will be in Twenty Years.

Are your yard trucks scrambling to catch up with Amazon’s fulfillment strategy? Amazon.com has a reputation for changing the shipping industry with its bold, innovative ideas. How will the trickle-down effect of such changes affect your business?

Rapid Response

Amazon’s dominance in the retail industry is courtesy of its uber-efficient supply chain, which it’s continuously evolving to deliver products in the quickest way possible. Their 2005 introduction of 2-day ‘Prime’ shipping changed the industry, leaving competitors scrambling to keep up. (When they did, Amazon introduced 1-hour shipping.)

Accomplished via sophisticated information technology, a vast network of warehouses, multi-tier inventory management, and unparalleled transportation has Amazon’s supply chain at the head-of-the-pack worldwide.

A Logistics & Retail Giant

Amazon’s supply chain relies heavily on outsourced inventory management: Third-party sellers comprise 82% of sales. However, it doesn’t rely on third-party shipping logistics, insourcing shipping via its own delivery vehicles for same-day/1-hour shipments.

Amazon also offers greater shipping options, including 1-hour, 1-day, 2-day/Prime, first-class and ‘free-super-saver.’ Warehouses are strategically placed with location and size key to success. Each warehouse is ever-closer to metropolitan/city centers: 70 fulfillment centers nationwide and a staff of 90,000 make the most of its ‘pure-push’ strategy for warehouse-sourced sales.

Storage is divided into 5-areas:

– Prime books/magazines

– Pallet/full-case Prime high-demand storage

– Prime high-demand items (less-than-case)

– Irregularly-shaped/low-demand inventory (reverse-storage)

– Modern-demand, small items

Amazing Automation

Amazon Robotics pick/pack without human assistance, speeding shipments. 45,000+ robots bring goods to people for picking. (Next-gen robots will pick, and drone-based delivery testing continues…)

Manufacturing to Support Retail Sales

Amazon’s realization it could provide third-party items more cheaply/quickly to customers have prompted Amazon to enter the manufacturing arena as well.

Scrambling to keep up with Amazon’s shipping standards? Give your operation a boost with yard trucks from DJProductstoday.

Leave a Reply