Living in the Shadow of Amazon: Learn the Lessons

amazon2

Photo courtesy: Amazon

Amazon is the elephant in the room where any supply chain conversation is happening. Everyone is chasing that Amazon effect. Everyone is trying to figure out how to deliver on the expectations of customers that Amazon and its business models have created.

Retrofitting Amazon’s strategies or tactics for another business is tough. In terms of order volume and order profile, Amazon is its own kind of beast. At the same time, it makes sense to look at some of Amazon’s most groundbreaking tactics to see what lessons can be learned by electronics distributors. Trying to be Amazon won’t work, of course. However, there are ways to improve operations in ways that take into account your operating environment, merchandise profiles, and business realities.

1. Amazon Prime

Amazon Prime, the annual subscription offering from Amazon, is a master stroke. You could argue that they copied the Costco model with a yearly membership fee, but added a wealth of value in addition to two-day shipping.

The closest thing that a retailer or distributor can offer would be some kind of a subscription service. The secret would be identifying an essential item that customers would want delivered automatically at certain intervals. It would be important to consider products that are the right combination of being regularly used and where brand loyalty can be built with the customer.

2. Lightning fast fulfillment

In the past few years, the availability of warehouse execution systems (WES) set the bar for immediate order fulfilment. These systems fulfil an order in 20 minutes to an hour after an order has dropped into the distribution center. Amazon’s benchmark is 20 minutes. It’s fulfilment systems are so optimized that it can regularly meet that target.  Further, Amazon’s Prime Now service delivers products to some areas in as little as two hours.

Originally, typical WMS used a “waving process,” which batched orders optimal allocation, picking and fulfilment. Today’s waveless order fulfilment down loads each order as it comes in to optimize processing. Further, today’s WMS optimize visibility into the warehouse. Technology adoption is the road that gives distributors and retailers a similar edge compared to Amazon.

3. Robots in Amazon DCs

Plenty has been said about Amazon’s use of robots in its distribution centers.

  • In areas where real-estate is prohibitively expensive, items can be stored in tightly packed small bins and moved easily by robots.
  • In organizations selling very small items, such as electronic components, items can be located in even smaller movable bins.
  • With organizations that hire veterans (who are perhaps disabled), robots can move the bin to the worker, who stays in one place and fills customer-bound boxes.’
  • Robotics offer flexibility that is far greater than fixed conveyors, allowing for quick reprogramming of functionality, travel paths and more.

kivarobotamazon

Photo courtesy: Amazon

There are some downsides to the use of robots, though:

  • Robots are expensive, so return on investment (ROI) takes time.
  • Robots require charging infrastructure, and fast charging is still being developed, so charging time must be built into operations.
  • Finding talented individuals who know how to program robotics can be difficult. This bar is being lowered every day as programming is made easier.

Carefully weigh both sides before deciding that robots are the right answer for the organization. 

4. Standardization of DC design

If a distributor or retailer is considering a major supply chain infrastructure overhaul, standardizing the design of the distribution should top the list of priorities. Otherwise, it can be difficult to do. By having standardized processes, systems, layouts, and roles and responsibilities, creating multiple DC’s gets easier. Building and deploying new capabilities is also made simpler.  The work and expense, though, rarely makes sense as a separate exercise after distribution centers already are up and running.

5. Geographical proximity

Amazon has more than 70 distribution centers that have been built recently. These boast modern infrastructure and technology. They are scattered across the United States.  It makes sense to download orders to a distribution center located closest to a customer’s delivery zip code.  The system needs to recognize the zip code and match it to the nearest DC that has the appropriate inventory on the shelf. Distributed Order Systems (DOM) are available from various WMS vendors, and can be can added on to an existing WMS or in a new deployment.

Which of Amazon’s strategies have inspired change in your business? What lessons can be learned from the retail giant? Let us know what you think in the comments section below.

28
Feb 2018
By Puga Sankara384 Comments
Author:
Puga Sankara
About:
Puga Sankara is the Founder, CEO of Smart Gladiator LLC. Smart Gladiator designs, builds, and delivers market-leading mobile technology for retailers, distributors, and 3PL service providers. So far, Smart Gladiator LoadProof has been used to ship, receive, and scan more than 100 million boxes. SG LoadProof is a patent pending Centralized Enterprise Photo/Video Document System on Cloud for Supply Chain. SG LP is built on the fact that photos & videos are vital docs as important as POs/SOs/Legal Contracts/Fulfillment Orders that reside in ERP/WMS/TMS systems, that serve as compelling, conclusive, unequivocal proof of crucial, critical, vital operations executed in Supply Chain within/across orgs when fulfilling customer orders as well as meeting contractual obligations between orgs as merchandise is transferred between different parties that partake in Supply Chain functions & operations. And these photos/videos data should not be stored in someone’s Smartphone or Email Inbox or in their personal/work Computer, but should be stored in a Centralized Enterprise system, where such data can be pushed into super-fast, stored securely, accessible to all stake holders (CFO/Sales Reps/Customer Support/AR/AP) in an org, as well as facilitates super-fast retrieval/sharing. LP is an Enterprise System of record for Photo/Video docs & is as important as an ERP which is an enterprise system of record for POs, SOs, Legal Contracts between parties etc. that have huge legal ramifications, also as important as a WMS (Warehouse Management System) that hold indispensable shipment & fulfillment data on orders. Like how Instagram, Facebook, Snapchat etc. have evolved into social media platforms/systems that enable individuals to showcase their beauty/pretty clothes/lovely cosmetics/hep coolness etc., LoadProof is an Enterprise system that holds similar photos/videos, but for a different reason, not for show off, but to serve as compelling, conclusive, unequivocal & indisputable system of record and proof that can be presented even in the court of law, when there is a dispute between parties while they execute many facets of the Supply Chain functions & operations. SG LoadProof is also an Enterprise System of Record for Photos, videos and any other digital documents for your Supply Chain Network. A system of record (SOR) or source system of record (SSoR) is a data management term for an information storage system (commonly implemented on a computer system running a database management system) that is the authoritative data source for a given data element or piece of information. The need to identify systems of record can become acute in organizations where management information systems have been built by taking output data from multiple source systems, re-processing this data, and then re-presenting the result for new business use. In these cases, multiple information systems may disagree about the same piece of information. These disagreements may stem from semantic differences, differences in opinion, use of different sources, and differences in the timing of the extract, transform, and load processes that create the data they report against, or may simply be the result of bugs. The integrity and validity of any data set is open to question when there is no traceable connection to a good source, such as a known System of Record. Where the integrity of the data is vital, if there is an agreed system of record, the data element must either be linked to, or extracted directly from it. In other cases, the provenance and estimated data quality should be documented. The “system of record” approach is a good fit for environments where both: 1. there is a single authority over all data consumers, and 2. all consumers have similar needs Here, LoadProof is the System of Record for pictures and videos for all the entities in Supply chain who uses pictures and videos to track using any Supply Chain System infrastructure. 1. LoadProof provides accurate, thorough, complete, and latest information in pictures and videos related to any entity in the Supply chain that is tracked. 2. LoadProof is the single authority on pictures and videos related to any entity in the Supply Chain that is tracked 3. LoadProof doesn’t let any external system to copy the records being stored in it, which eliminates the data being duplicated in multiple places to preserve the data integrity and credibility. 4. LoadProof has a secured login procedure which lets only users with select level access to view the data and modify the records which helps in maintaining LoadProof is becoming the Industry Standard System for Photo & Video Docs for Supply Chain Smart Gladiator is located in ATDC - Advanced Tech Dev Center (tech Incubator) in Georgia Institute of Tech. Click for a demo - https://loadproof.com/apply Puga is a supply chain technology professional with more than 25 years of experience in deploying capabilities in the logistics and supply chain domain. His prior roles involved managing complicated mission-critical programs driving revenue numbers, rolling out a multitude of capabilities involving more than a dozen systems, and managing a team of 30 to 50 personnel across multiple disciplines and departments in large corporations such as Hewlett Packard. He has deployed WMS for more than 30 distribution centers in his role as a senior manager with Manhattan Associates. He has also performed process analysis walk-throughs for more than 50 distribution centers for WMS process design and performance analysis review, optimizing processes for better productivity and visibility through the supply chain. Size of these DCs varied from 150,000 to 1.2 million SQFT. Puga Sankara has an MBA from Georgia Tech. He can be reached at puga@smartgladiator.com or visit the company at www.smartgladiator.com. Also follow him at www.pugasankara.com. [Read More]
More articles by: Puga Sankara

384 Comments

  8. Профессиональный сервисный центр по ремонту бытовой техники с выездом на дом.
    Мы предлагаем:ремонт крупногабаритной техники в москве
    Наши мастера оперативно устранят неисправности вашего устройства в сервисе или с выездом на дом!

    Reply

  9. This is very interesting, You are a very skilled blogger. I’ve joined your rss feed and look forward to seeking more of your magnificent post. Also, I have shared your website in my social networks!

    Reply

  17. Achat mГ©dicament en ligne fiable [url=https://pharmafst.com/#]trouver un mГ©dicament en pharmacie[/url] vente de mГ©dicament en ligne pharmafst.shop

    Reply

  22. kamagra pas cher [url=https://kamagraprix.com/#]Kamagra Commander maintenant[/url] kamagra 100mg prix

    Reply

  28. Tadalafil 20 mg prix sans ordonnance [url=https://tadalmed.shop/#]Tadalafil 20 mg prix en pharmacie[/url] Acheter Cialis tadalmed.com

    Reply

  33. Kamagra Oral Jelly pas cher [url=https://kamagraprix.shop/#]Kamagra Commander maintenant[/url] achat kamagra

    Reply

  44. Kamagra Commander maintenant [url=https://kamagraprix.shop/#]Kamagra Oral Jelly pas cher[/url] Acheter Kamagra site fiable

    Reply

  50. Tadalafil 20 mg prix sans ordonnance [url=http://tadalmed.com/#]Tadalafil sans ordonnance en ligne[/url] Cialis en ligne tadalmed.com

    Reply

  56. Achat Cialis en ligne fiable [url=https://tadalmed.shop/#]Achat Cialis en ligne fiable[/url] Cialis sans ordonnance pas cher tadalmed.com

    Reply

  71. Cialis sans ordonnance pas cher [url=http://tadalmed.com/#]Cialis sans ordonnance 24h[/url] Cialis sans ordonnance pas cher tadalmed.com

    Reply

  111. пин ап вход [url=http://pinuprus.pro/#]пин ап зеркало[/url] pin up вход

    Reply

  117. пинап казино [url=http://pinuprus.pro/#]пин ап зеркало[/url] пин ап зеркало

    Reply

  118. вавада зеркало [url=https://vavadavhod.tech/#]vavada[/url] вавада официальный сайт

    Reply

  134. verified Modafinil vendors [url=https://modafinilmd.store/#]modafinil pharmacy[/url] buy modafinil online

    Reply

  146. tadalafil 5 mg tablet [url=https://tadalaccess.com/#]cialis tablets[/url] is tadalafil peptide safe to take

    Reply

  151. tadalafil long term usage [url=https://tadalaccess.com/#]Tadal Access[/url] generic cialis 5mg

    Reply

  158. tadalafil (exilar-sava healthcare) [generic version of cialis] (rx) lowest price [url=https://tadalaccess.com/#]cialis timing[/url] vigra vs cialis

    Reply

  162. comprar tadalafil 40 mg en walmart sin receta houston texas [url=https://tadalaccess.com/#]what is cialis prescribed for[/url] cheap cialis pills uk

    Reply

  166. buy tadalafil powder [url=https://tadalaccess.com/#]Tadal Access[/url] online cialis prescription

    Reply

  171. cialis manufacturer coupon free trial [url=https://tadalaccess.com/#]generic cialis online pharmacy[/url] cialis and cocaine

    Reply

  174. cialis where to buy in las vegas nv [url=https://tadalaccess.com/#]cialis daily dose[/url] can you purchase tadalafil in the us

    Reply

  178. cialis generic overnite [url=https://tadalaccess.com/#]buy cialis shipment to russia[/url] tadalafil tablets 20 mg side effects

    Reply

  181. cheapest 10mg cialis [url=https://tadalaccess.com/#]Tadal Access[/url] tadalafil tamsulosin combination

    Reply

  183. cialis super active [url=https://tadalaccess.com/#]TadalAccess[/url] erectile dysfunction tadalafil

    Reply

  191. buy cialis free shipping [url=https://tadalaccess.com/#]cialis using paypal in australia[/url] buying cialis in mexico

    Reply

  194. prescription for cialis [url=https://tadalaccess.com/#]cialis 5mg price walmart[/url] tamsulosin vs. tadalafil

    Reply

  196. when does cialis go off patent [url=https://tadalaccess.com/#]cialis 20 mg price walgreens[/url] cialis daily vs regular cialis

    Reply

  199. best price for tadalafil [url=https://tadalaccess.com/#]buy cialis usa[/url] cialis before and after pictures

    Reply

  204. cheapest antibiotics [url=https://biotpharm.com/#]Biot Pharm[/url] best online doctor for antibiotics

    Reply

  209. buying ed pills online [url=https://eropharmfast.shop/#]low cost ed medication[/url] erectile dysfunction medication online

    Reply

  215. Buy medicine online Australia [url=http://pharmau24.com/#]Medications online Australia[/url] Licensed online pharmacy AU

    Reply

  224. buy antibiotics [url=http://biotpharm.com/#]Over the counter antibiotics for infection[/url] buy antibiotics online

    Reply

  227. buy ed meds [url=https://eropharmfast.shop/#]cheapest online ed treatment[/url] Ero Pharm Fast

    Reply

  244. buy antibiotics over the counter [url=https://biotpharm.shop/#]BiotPharm[/url] buy antibiotics over the counter

    Reply

  254. achat kamagra [url=https://kampascher.shop/#]commander Kamagra en ligne[/url] kamagra livraison 24h

    Reply

  258. kamagra oral jelly [url=https://kampascher.com/#]kamagra 100mg prix[/url] pharmacie en ligne avec ordonnance

    Reply

  263. kamagra en ligne [url=http://kampascher.com/#]commander Kamagra en ligne[/url] acheter kamagra site fiable

    Reply

  267. prix bas Viagra generique [url=http://viasansordonnance.com/#]Acheter du Viagra sans ordonnance[/url] Viagra Pfizer sans ordonnance

    Reply

  272. achat kamagra [url=http://kampascher.com/#]commander Kamagra en ligne[/url] kamagra 100mg prix

    Reply

  276. acheter medicaments sans ordonnance [url=https://pharmsansordonnance.shop/#]pharmacie en ligne pas cher[/url] pharmacie en ligne france livraison internationale

    Reply

  281. commander Viagra discretement [url=https://viasansordonnance.com/#]Acheter du Viagra sans ordonnance[/url] prix bas Viagra generique

    Reply

  286. commander Viagra discretement [url=https://viasansordonnance.com/#]Meilleur Viagra sans ordonnance 24h[/url] viagra sans ordonnance

    Reply

  291. Kamagra oral jelly pas cher [url=https://kampascher.com/#]kamagra gel[/url] Kamagra oral jelly pas cher

    Reply

  295. pharmacie en ligne france livraison internationale [url=http://pharmsansordonnance.com/#]pharmacie en ligne pas cher[/url] pharmacie en ligne

    Reply

  299. Pharmacie en ligne livraison Europe [url=https://pharmsansordonnance.shop/#]pharmacie en ligne sans ordonnance[/url] pharmacie en ligne fiable

    Reply

  303. cialis sans ordonnance [url=http://ciasansordonnance.com/#]pharmacie en ligne[/url] traitement ED discret en ligne

    Reply

  309. pharmacie en ligne sans prescription [url=https://pharmsansordonnance.shop/#]Medicaments en ligne livres en 24h[/url] Achat mГ©dicament en ligne fiable

    Reply

  313. Cialis pas cher livraison rapide [url=https://ciasansordonnance.shop/#]cialis prix[/url] Cialis pas cher livraison rapide

    Reply

  316. Pharmacie sans ordonnance [url=https://pharmsansordonnance.shop/#]pharmacie en ligne sans ordonnance[/url] pharmacie en ligne fiable

    Reply

  317. prix bas Viagra generique [url=https://viasansordonnance.com/#]Acheter du Viagra sans ordonnance[/url] acheter Viagra sans ordonnance

    Reply

  319. acheter medicaments sans ordonnance [url=https://pharmsansordonnance.com/#]pharmacie en ligne[/url] trouver un mГ©dicament en pharmacie

    Reply

  321. livraison discrete Kamagra [url=https://kampascher.com/#]kamagra pas cher[/url] kamagra pas cher

    Reply

  324. This is where things start to get interactive, as you’re tasked with setting up slot machines in three out of the five establishments shown before you, the aim being to make money. The more money you make for the boss, the better off you’ll be. When we tried it, there doesn’t appear to be a losing result, though some places will reward better outcomes than others. After you’ve placed your machines and collected the winnings, you’ll meet with Big Boss and your total will be given to you. Website Live dealer games are some of the most innovative and immersive offerings at online casinos. Learn about the top live dealer casinos with our expert guide! List of best casino applications where you also can play Aviator on-the-go
    https://polystyrenecutter.co.za/crypto-payment-support-in-space-xy-what-coins-are-accepted/
    Bagi yang suka dengan gameplay berisikan kemenangan besar, Spaceman adalah pilihan tepat bagi member di situs slot gacor hari ini terpercaya 2025 karena hanya dengan modal kecil, bettor bisa meraih kemenangan besar, bukan lagi sekadar impian. DAFTAR SLOT88RESMI Dalam dunia slot online yang semakin berkembang saat ini, memiliki lisensi resmi tentunya sudah menjadi kunci dalam menawarkan pengalaman bermain yang ternyaman saat ini. Pragmatic77 merupakan situs slot online yang sedang naik daun, telah mengukuhkan posisinya di industri ini melalui naungan dari provider yang sudah dipercaya oleh masyaraat pecinta slot online yaitu Pragmatic Play, salah satu provider game slot terkemuka di dunia. Kerjasama ini membawa angin segar bagi para penggemar game slot, menjanjikan koleksi permainan yang tidak hanya lengkap tetapi juga berkualitas tinggi.

    Reply

  325. pharmacie en ligne sans prescription [url=https://pharmsansordonnance.shop/#]pharmacie en ligne sans prescription[/url] pharmacie en ligne

    Reply

  327. cialis sans ordonnance [url=http://ciasansordonnance.com/#]п»їpharmacie en ligne france[/url] Cialis sans ordonnance 24h

    Reply

  329. achat kamagra [url=https://kampascher.shop/#]pharmacie en ligne france pas cher[/url] kamagra gel

    Reply

  331. viagra en ligne [url=https://viasansordonnance.com/#]prix bas Viagra generique[/url] Viagra sans ordonnance 24h

    Reply

  335. Г©quivalent viagra sans ordonnance en pharmacie [url=http://pharmacieexpress.com/#]Pharmacie Express[/url] viagra pour homme prix pharmacie

    Reply

  339. creme anthelios 50+ [url=https://pharmacieexpress.shop/#]Pharmacie Express[/url] somnifere sans ordonnance

    Reply

  348. valium sans ordonnance en pharmacie [url=https://pharmacieexpress.com/#]pharmacie de garde peut on y aller sans ordonnance[/url] propranolol en pharmacie sans ordonnance

    Reply

  353. durex elite [url=http://pharmacieexpress.com/#]Pharmacie Express[/url] ordonnance mГ©decin gГ©nГ©raliste

    Reply

  356. farmacia online italia sicura [url=http://farmaciasubito.com/#]augmentin sciroppo bambini 70 ml[/url] dicloreum per cervicale

    Reply

  361. spedra 100 mg 4 compresse [url=https://farmaciasubito.com/#]Farmacia Subito[/url] entact 10 mg prezzo

    Reply

  364. busette principio attivo [url=https://farmaciasubito.shop/#]clody punture[/url] migliori cerotti per dolori muscolari

    Reply

  368. los anticonceptivos se pueden comprar sin receta [url=https://confiapharma.com/#]donde comprar insulina sin receta[/url] donde puedo comprar clomifeno sin receta

    Reply

  371. efracea 40 mg prezzo [url=https://farmaciasubito.com/#]latay collirio[/url] decapeptyl 3.75 prezzo

    Reply

  375. nature attitude peau saine [url=http://pharmacieexpress.com/#]Pharmacie Express[/url] daflon autre nom

    Reply

  378. farmacia online avila [url=http://confiapharma.com/#]propranolol comprar sin receta espaГ±a[/url] farmacia online cicatridina

    Reply

  383. farmacia trieste online [url=http://farmaciasubito.com/#]farmacia svizzera online[/url] tredimin 25.000 flaconcini prezzo

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.