How Amazon Company Manages Logistics Effectively

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How Amazon Company Manages Logistics Effectively

The Amazon company effectively manages logistics and the supply chain. It offers a fast and organized way to store and deliver products. Sellers using Amazon services receive solutions for storing and tracking their goods. Buyers, in turn, receive the ordered item quickly, with the opportunity to monitor the purchase movement. As a result, speed, cost-effectiveness, and efficiency create value for customers. The company uses unique algorithms to organize the storage of goods and constantly improves delivery methods by introducing innovations following identified trends. For example, most of the goods transferred by Amazon are less than 5 pounds, which inspired the idea of using unmanned aerial drones to deliver them to buyers.

Placing goods from suppliers in their fulfillment centers is a hallmark of Amazon. The company uses unique systems to create purchase forecasts in various regions. Such a measure allows them to provide suppliers with up-to-date information for setting volumes and delivery dates for products. To improve the flow of goods to customers, sorting, packaging, and delivery systems are used. The programs create special maps with the location of products in the warehouse, which allows for finding and packing them (Kerin & Hartley, 2018). Purchases are then distributed depending on the delivery place, and the trucks take them to the necessary points.

Effective logistics and supply chain management are essential to the success of Amazon, as its operations cover a large number of suppliers and buyers in many countries around the world. If logistics and the supply chain are unprofitable, prices for the companys transportation and service will increase. Moreover, the critical advantage of orientation on customers needs will disappear. As a result, Amazon can lose its clients and profits. However, continuous improvement in its operations, especially in logistics and the supply chain, allows the company to maintain success.

Reference

Kerin, R. A., & Hartley, S. W. (2018). Marketing: The core (7^th ed). McGraw-Hill Education

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