Amazon.com is one of the most well-known e-commerce companies in the world, because its logistics management model and its personalized supply chain with its relationship with the customer, powered by shipment systems, is the envy, the challenge And perhaps a threat to many actors in the sector.

What is behind this company?

According to its website, Amazon seeks to be:

“The most customer-centric company on Earth, where people can basically find and discover anything they want to buy online.”

It began in 1995 as a book-buying website that grew to become one of the richest companies on the planet. Today, Amazon.com manages retail websites and platforms that allow the sale of products from other vendors.

2 million sellers of new, refurbished and used products, from books to automotive products
97,000 part-time and full-time employees around the world
By 2015, its net profits reached US $ 10bn
304 million active users global level
Internally, the company offers services to customers in the United States with merchandise wagered in a few stores. “Each store concentrates demand across a broad geographic area, leading to more stable predictions and lower total inventory,” according to Sunil Chopra and ManMohan S. Sodhi in an article in the MIT Sloan Management Review.

On the other hand, the structure of Amazon has a reduced number of levels. “The levels of retail, considered as an efficient mechanism to improve the dynamics of the supply chain, goes through the flow of data and material through information technologies,” according to S.M. Disney, M.M. Naim, and A. Potter, who have studied the impact of e-commerce in the supply chain.

In working with other suppliers, Amazon.com collaborates with logistical operators such as ProLogis, the largest provider of integrated distribution services, with more than 1,500 distribution centers in North America and Europe, as well as DHL for direct shipments.

According to Rebecca Saunders’s book, Business the Amazon.com Way: Secrets of the World’s Most Astonishing Web Business, the core philosophy of the company is the alignment of distribution and logistics with strategic plans.

According to the vision of the management of the company, Amazon seeks:

Understand the shipping needs of customers
Offer current titles and hard-to-find editions with wholesale suppliers and independent producers
Ensure a two-day delivery limit on most orders through the warehouse management model
Allow customers to review the status of their purchases and monitor their shipments
Align supply and distribution with other areas of the company such as marketing, sales and customer service
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Innovations in the Supply Chain

The company has grown exponentially in its scope and range of services. According to the TechCrunch portal, Amazon’s development process follows the following structure:

Identifying inefficiencies
Develop a technological solution
Scale the solution on a platform
Offer the platform as solutions for third parties
Systems of robotic supply

Its warehouses and supply centers work with intelligent machinery. When ordering certain items online, the system scans the products inside the inventory and then dispatches them to a staff member. The BBC’s website went to stores in the UK to get to know them:

The shelves are movable, and are propelled with wheels to the stationary pickers
Collectors simply pick up the item they need
Robotized shelves return to their place
Direct shipments

There are investments that can revolutionize the industry. A report from Bloomberg Business advances its long-term strategies, with the potential to compete directly with UPS, FedEx and Alibaba. Amazon is in the process of leasing aircraft and registering in the cabotage business to create “a network of global shipments that controls the flow of goods from factories in China and India, to the door of customers,” according to the publication .

According to Computer World, Amazon “would collect inventories from thousands of merchants around the world, and buy space for fleets of trucks, planes and ships at reduced prices. Merchants will be able to reserve cargo space online or on mobile devices, creating what Amazon describes as a “single-click delivery, for business transactions and continuous international shipments.”

Both the CRM system and ICT are the basis for this type of strategy,

business supply chain success: Amazon.com

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