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!!!
