"No one is harder on a talented person than the person themselves" - Linda Wilkinson ; "Trust your guts and don't follow the herd" ; "Validate direction not destination" ;

May 05, 2021

How Amazon Delivers On One-Day Shipping

 

What they may do behind the scenes?

  • The key to success is Inventory management
  • Quarterly / Early / Weekly Demands updates is the key
  • Understanding buying patterns/trends and updating the numbers mastering the accuracy
  • Demand Planning, Forecast run ahead, Stocked up earlier
  • Overstock / Before every quarter keep the items stocked up in all DCs for the anticipated frequent products in each category
  • Not all products/categories may make money but the experience will make customers come again / buy again
  • Buy in Bulk and Stock it
  • Robotics arms, Robotics package movers
  • Order early and keep good margins
  • Ship between / Leverage different countries / In a way optimize unsold inventory
  • They have their own Aircraft / Careers / Own Transportation network
  • Building own logistics network
  • Marketplace / Third party sales 
    • Path1 - Seller - Warehouse - Customer
    • Path2 - Seller - Fulfilment - Customer
  • Pickers are measured by rates / only 30 mins break / Demanding pickers
  • Amazon is good at customer service but not sure how they treat their own Employees :)
Amazon product distribution 

I ordered product X from Amazon

Flow #1
  • The product was shipped from Hyderabad
  • The product was shipped to Chennai
The product had some repair, I placed a replacement

Flow #2
  • Product shipped from Coimbatore
  • Product in transit near salem
Insights
  • They have a warehouse in Salem
  • For every order, they find the nearest distribution centres to ship (Hyderabad, Coimbatore)
  • Their demand system might stock up the product from Manufacturers to different distribution centres and further leverage for customer demands
Keep Exploring!!!

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