The secret behind the largest Indian supply chain management “Amazon”
Generally speaking, Amazon, an e-commerce corporation, is in charge of meeting the need for purchasing in many different parts of the world.
It has successfully grown to be a $1 billion firm with the aid of the Indian Amazon Supply Chain. When Amazon was initially established in 1994, it didn’t have many products to work with. It was initially created to market books. As time went on, Amazon began to sell a variety of goods, including necessities. Amazon’s popularity has increased significantly during the course of its involvement in the market.
Due to the rising demand, Amazon must have a reliable shipping and logistics system in place to avoid breakdowns. Pandemics gave the e-commerce industry the necessary boost. From that point on, Amazon became an increasingly necessary daily service.
The Amazon Prime membership program is the company’s second-best offering. Amazon has to have the right amount of warehouses and a seamless shipping system in order to maintain the same degree of confidence with its customers. The entire Amazon process is broken down into a few steps, starting with placing an order and ending with getting the goods.
Importance of Warehouse in Amazon Supply Chain
Amazon employs warehouses as a storage facility for its goods. Amazon has the administration of its warehouses planned out in a way that will ensure a seamless operation for its business. For a nation like India, it is necessary to put up several warehouses in order to offer services everywhere.
In India, there are around 60 separate Amazon warehouse locations. Bengaluru, India, is home to Amazon’s largest warehouse, which has a volume of over 2.4 million cubic feet. Installing a fulfilment centre or warehouse in Patna, which will benefit over 11,000 vendors, was another excellent move by Amazon.
Amazon selects the locations for its warehouse based on a few more criteria. It is well known that Amazon locates its warehouses, particularly close to major cities. It is well renowned for choosing its locations using a pure push tactic. For the purpose of distributing and storing goods for delivery, a warehouse is required.
The Amazon Warehouse Method
The usage of a chaotic system is another tactic Amazon employs in relation to the warehouse. The first image that comes to mind when a warehouse system notion is mentioned is a tidy storage area with all of its shelves organized and labelled. The warehouse, however, is more disorganized than organized for Amazon. Amazon allocates a product to any open spot in its warehouse in accordance with the philosophy of maintaining chaos. Because they have barcodes on them, this approach is extremely beneficial and practical.
The collaborative workplace shared by humans and machines in the Amazon warehouse system is what makes it special. Following the purchase of Kiva, Amazon began employing robots in 2012.
According to reports, Amazon has since increased the number of robots by about 15,000 in total. Despite the addition of barcodes, Amazon items are still stored in the warehouse at random. The robots utilise these barcodes after they have been scanned. A precise count of the goods present in the warehouse is therefore achievable thanks to the transfer of this information to the inventory system. Almost all procedures are now carried out by artificial intelligence.
Famous cities like Mumbai, Pune, Bengaluru, Delhi, Ludhiana, etc. all have Amazon warehouses. To ensure a seamless working procedure, Amazon established a robust warehouse management system.
There are roughly 25 specialized facilities, in addition to warehouses, that are designated specifically for delivering fresh items like fruits and vegetables, along with groceries and everyday necessities.
Role of Logistics in Amazon Supply Chain
Inventory management is the main responsibility of Amazon Logistics. It effectively maintains an eye on the goods kept in a warehouse. The decision about which warehouse a product must be shipped to or from is made by Amazon logistics.
The logistics department at Amazon is only responsible for the accurate tracking of a specific product’s position inside such a chaotic warehouse. Any consumer who places an order will have the merchandise shipped to the closest shipping facility. All of this falls under Amazon’s logistics department.
- Amazon Logistics is responsible for choosing the most appropriate modes of transportation.
- Another crucial function of Amazon Logistics is the classification of goods requiring various storage conditions and the placement of those goods appropriately.
The Simplification of Amazon’s Complicated Logistical Process
It is crucial to streamline the convoluted logistics and shipping processes to ensure that goods arrive on time. With the availability of premier service, customers often receive their orders in 2 days or less.
It is crucial to have a system in place in order to use and adhere to such a practice. Amazon is renowned for keeping its merchandise in warehouses. Warehouses are nothing more than unkempt spaces filled with a variety of goods.
Each product has a unique barcode allocated to it, making it simple to identify the contents of packages. Each seller ships their goods to a designated warehouse or warehouses that are close by. Once the goods have been received within the warehouse, they are stored wherever space is available. When a consumer puts an order, the order is traced back to the warehouse, and the entry is examined to see where that specific product is located. via another round of barcode scanning, which is verified again.
The item is then picked up and delivered to the local shipping facilities designated by the clients. At certain locations at the shipping terminal, there are blocks designated. On the product package in the shipping centre, there is an additional sticker installation. The product is then sent out from this location using the facility that is appropriate for it and the area code that is printed on it.
Amazon Shipping Options
Certain vendors occasionally advise sending all items using their service. Amazon’s terms and conditions permit this as well. FedEx delivery, Gati, Indian Postal Service, Bluedart, and other shipping partners are just a few of the many that Amazon employs to make shipping simple.
Amazon is said to have its postal service established in India along with these postal services. A transportation company by the name of Amazon Transportation Service [ATS] is another Amazon property. The airway is occasionally used by the top service, which enables users to acquire things within two days, to accomplish its objective. Amazon shipping then chooses the best ride choice based on the region and the location of the shipment. To facilitate quick product transportation via cargo, there are around 20 airports worldwide.
Conclusion
One of the most successful e-commerce firms today is Amazon. For its shipping and logistics, a variety of rules and strategies have been employed to run such a large business and provide its clients with good services. Amazon employs a variety of methods for storing and shipping from a warehouse to complete tasks as quickly as possible, and then it chooses the best approach for moving its goods. With everything in place, Amazon maintains top-notch delivery and logistics.
FAQs
How does India’s supply chain for Amazon operate?
Following a customer’s purchase, Amazon gets the ordered goods at the fulfilment facility. The product successfully undergoes extensive quality inspections using cutting-edge technology, involving both people and robots. The order is packaged, and its logistic partners then send it.
How does Amazon handle its logistics in India?
The majority of Amazon’s deliveries are made using its logistics. Other partners include BlueDart, FedEx, Delhivery, eCom Express, Aramex, Indian Post Service, and Gati in addition to those mentioned above.
Are Amazon’s logistics located in India?
In India, Amazon has established a separate logistics division. a division of Amazon.com with a U.S. basis. The e-commerce giant Amazon Transportation Services Private Limited (ATSL) will transport goods from vendors whose goods are sold on its platform.
edited and proofread by nikita sharma
