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?
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
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.