Business Lessons to Learn from Amazon

One of the biggest organizations in the world, Amazon has changed the way we shop. Consumers are no longer willing to wait in the long queue at physical stores. Everything has gone digital now. We look at products and place an order. The product is delivered at the doorstep in no time. Amazon has achieved tremendous success over the years because of the unique and efficient Amazon supply chain. Considered as one of the best supply chain system, Amazon works with several third parties to ensure timely delivery of the product. They have warehouses across different cities that streamline the entire process. From the moment you place an order, the supply chain starts to work. The product will be picked up from the warehouse and handed to the third party who will deliver it.

Amazon logistics and supply chain management ensure that the fulfillment time is minimum and there are no delays in product delivery. Even in the time of a crisis, Amazon remains at the top of market. With the right professionals and an efficient supply chain in place, nothing can beat Amazon. Businesses have a lot to learn from their supply chain. Amazon also uses the latest technology to keep real time data and use this information for the right purpose. With technology, Amazon can keep a watch on where the product has reached. They send alert messages to consumers accordingly and ensure that there is no unnecessary delay. The supply chain is a huge success because of Amazon experienced supply chain experts who are always working behind the scenes. They are always on their toes to ensure that every consumer it satisfied with their services.

Advatix is a supply chain expert that offers customized solutions as per the needs of the clients. They will create a unique supply chain keeping the consumer at the forefront and will help integrate the same in the business vertical.

Understanding Amazon Supply Chain Process

The retail industry has undergone transformation and e-commerce giants like Amazon have contributed to the change. One of the largest companies in the world, Amazon has made a mark for itself in the industry. Consumers are no longer willing to wait in a queue at a physical store. They place an order for the product and have it delivered to their doorstep in no time. Amazon supply chain process has made it possible for Amazon to achieve high customer satisfaction and to reach out to consumers all across the globe. Amazon has tied up with third parties for quick and timely delivery of their products. They have warehouses across different cities in the country.

The moment you place an order, the product is picked up from the warehouse and is handed over to the third party for delivery. Amazon’s supply chain management system has the lowest fulfillment time. They have real time data of the movement of the product and are aware of how soon the product will reach you. Amazon has made a shift in the way they communicate inventory demand to the vendors. Demand is based on sales history, product views and projected demand for planned promotions but they have a probability forecast of 70%, 80% or 90% and they stock products in the warehouse accordingly.

Amazon has also cracked the code of returns and pick up. They have the minimum pickup time and immediately issue a refund to the customer’s account. Amazon global supply chain management ensures that the product moves at the right pace and in the right direction at all times. Consumers vouch by the quick services of Amazon and it has helped the giant achieve high customer satisfaction.

Advatix is a supply chain expert that offers customized solutions as per your needs. The professionals have many years of experience in the industry and they keep the client at the forefront when building a supply chain. Advatix offers cost effective supply chain solutions for all businesses.

Benefits of Effective Supply Chain Management

Global supply chains have adopted a data driven approach to supply chain management. It gives end to end visibility for the monitoring of information, goods and services right from the place of procurement to manufacturing and finally to the end customer. An effective supply chain management system ensures that every product is at the right place at the right time. The benefits of supply chain management are discussed below.

1. Easy collaboration: The biggest challenge in the past was to collaborate with different departments and keep real time data of inventory. With a supply chain system, it is possible to get information at the right time and have a big-picture view of the business.

2. Better quality control: An efficient supply chain system will ensure greater control over direct suppliers and also their suppliers. It will reduce the cost associated with quality and will ensure high quality of the final product, minimal rejects and on time delivery. Supply chain consulting firms strive to improve quality control over business operations as this helps increase sales and revenue.

3. High efficiency: A supply chain system will establish the path on which every product will move. Right from the time of procurement of raw materials to the final product and its delivery. The process will be effective and efficient for the business. It will also increase efficiency of the employees and reduce down time.

4. Reduced operational costs: All businesses strive to reduce the cost of operations and if the supply chain is well planned, it can be possible. With accurate demand data, it is possible to make room for high revenue producing inventory. It is also possible to associate with third parties for product delivery. Identifying unnecessary spends will be the first step towards reducing operational cost.

Consider these benefits of a supply chain system and ensure that the business grows to its potential. Advatix is one of the best supply chain management companies that offer customized solutions as per the business needs. The professionals have many years of experience and offer cost effective solutions.