Amazon.com is a renowned global e-comers company. The company is known for its efficient logistical and personalized supply chain management strategy supported by an enhanced shipping and delivery system. The shipping and delivery service is handled by Amazon logistics, which a section of the larger Amazon.com. According to research by Vogt, Pienaar & De Wit (2005). Amazon logistics does not make the shipment itself but utilizes the existing third-party service providers including USPS, FedEx, and UPS, these provide Pick au and delivers the merchandise at Amazon sorting centers and warehouses using Amazon technology as a guide. The logistics service providers, however, enjoy flexibility in terms of pick up and schedules.
The service providers have to comply with specific regulations regarding licensing, safety training vehicle sizing, and insurance as required by Amazon logistics. Some of these services providers include chartered planes, ships, vehicles, motorcyclists, bicyclists, and even walkers in some cases. The company provides same-day delivery as well as a week delivery. Pick au and delivers the merchandise at Amazon sorting centers and warehouses using Amazon technology as a guide for their deliveries. These logistic service providers, however, enjoy flexibility in terms of pick up and schedules (Yu, Wang, Zhong & Huang 2016).
Order Tracking is one of the vital components of Amazon logistics. Through this strategy, clients have the capability of tracking their orders from a webpage. The web page provides essential information about the order. The aspect of tracking also allows customers to check missing packages. It is, however, to note that, when clients have not received a delivery, but the tracking components registers delivered, the client should check to see if the package was left with a receptionist or neighbor. It’s, however, possible to contact the company if it feels necessary
Another significant aspect is the delivery information that ensures the security of the delivery. The delivery is left in a secure location in the event of the absence of the recipient. It the commodity I require the presence of someone during delivery. Three attempts of delivery are made, and in the event of a failure, the package will be returned to Amazon for a refund. If the delivery address requires “Security Access Code,” the customer should endeavor to provide this information before shipping commences. Once the information is available with the company, it will always be kept for reference while handling future orders. If a customer wants his or her order delivered during the weekend, this information can still be updated when adding a new address.
The company has an exemplary customer service which handles all inquiries for deliveries shipped with Amazon, other questions asked by the customers in addition to the frequent notification and updates on the clients on any mobile devices owned by the customer.
Amazon logistics ensures efficiency and time consciousness in the company logistics practice, making the company very attractive to users; hence, the cult following witnessed by around the world. These aspects are possible to ensure because of the combination of multi-tier inventory management, sophisticated information technology, excellent transportation, and an extensive network of warehouses. The logistics system is characterized by the following elements
Automation
Supply Chain Cost
Outsourcing Inventory Management and Insourcing Logistics
Delivery Options To Customers
Classes and Zones
Push/Pull Strategy for Supply Chain Success
Outsourcing Inventory Management and Insourcing Logistics
Williamson (2008), argues that outsourcing is an integral part of supply chain management, the practice enables the focus on its core competencies, helps in minimizing overall cost, provides space for ensuring customer satisfaction and provide the needed flexibility in operating and maintaining the supply chain. Accordingly, third-party sellers claim nearly 82 percent of Amazon’s sales. This explains why Amazon’s supply chain heavily depends on outsourcing of its inventory management, especially for the products that are not frequently purchased or ordered. These are not stored in regular Amazon warehouses. Its however important to note that Amazon logistic service is not fully outsourced unlike the supply chain aspect with a higher percentage as outsourced, as such, for same day delivery or one-hour delivery options to avoid lengthening of the product delivery time. It’s however essential to identify that
Delivery Options to Customers
Customer satisfaction is the measure of how the customer needs are met or surprised by products or services from a given company; customer satisfaction is a vital aspect for any company that needs corporate growth opportunities and new markets (Anderson, Fornell, & Lehmann, 1994). In this regard, Amazon logistics endeavors to be the best and to ensure the most efficient customer satisfaction in the industry. The company has therefore introduced several delivery options personalized to its clients, including one-day delivery, prime customers delivery, free super saver delivery, and first class delivery, among other delivery options available. These services are geared towards ensuring the fastest and the most efficient deliveries for better customer satisfaction, ensuring industry leadership.
Push/Pull Strategy for Supply Chain Success
According to Masuchun, Davis & Patterson (2004), push and pull strategy is useful to help companies map out their supplies based on their exact needs. The company, therefore, has ensured that its warehouses are strategically placed strategically for the clients by making them closer to main metropolitan areas and city centers. As such, the pure push model is used for the products it stores in its warehouses while regarding sells the products from the third party sellers the company deploys a pure pull strategy.
Classes and Zones
One of the major contributors to Amazon’s supply chain success is the fact that the company has set up and operating a network of mini-warehouses in strategies locations. The company realizes that the location, size, and the number of such facilities is a factor of sales. Amazon possesses slightly above 70 fulfillment centers in the U.S and more than 90,000 full-time employees to help meet the customer needs. The company also realize that storage strategy is also a contributor for efficient and fast delivery, the company therefore practices storage in warehouses subdivide into 5 sections including library prime storage stores for books and magazines, the random storage area stores smaller items of moderate demand, the pallet prime storage for storing products with high demand, the reverse storage for irregularly shaped items and the case flow prime storage stores for products of high demand picked in less-than-case quantities
Automation
The introduction of robotics in amazon logistics is a game changer for the industry; Amazon warehouses are packed with over 70,000 robots. These technological objects have contributed to the development of auto stores within Amazon. The robots assist in picking and packing needless of human intervention, enabling Amazon to complete warehouse activities super-fast.
Another aspect of automation is the adoption of a drone-based delivery system as well as the autonomous vehicles. The self-destruct drones would ensure the security of the people during their flight.
Supply Chain Cost
The company has been able to due to economies of scale as well as appropriate company strategies. As a result, it has always been able to remain at the top of the industries. The clients are also able to enjoy reasonable prices and therefore, loyalty leading to high sales.
CONCLUSION
Owing to the mesmerizing rate of Amazon’s continued innovations in logistics and supply chain has been key to its success and profitability. The company can produce large volumes at low costs, expand to other regions due to the availability of resources as well as meet the needs of its clients. The future is therefore bright for this technology giant.