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Amazon Logistic

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by

Mavis Xinkai

on 9 August 2016

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Transcript of Amazon Logistic

Builds Customer-Centric Supply Chain
Simplified & Improved efficiency
Exceeds customer's expectations
Attracts new customers
Boosting Amazon's sales
Customer loyalty
Background
How It
Works
Gains, Pitfall
Trade-off
Conclusion
Background Information
Formerly Known as Kiva Systems
Massachusetts- based Company
Manufactures Mobile Robotic Fulfilment Centre
Aquired in March 2012 by Amazon for $775 million
Name changed from Kiva System LLC to Amazon Robotics LLC in August 2015
Application of supporting
Company Business
Reduced Click to Ship cycle
Non-Stop Operation
Able to react to uncertainty in demand
Holds more Inventory in warehouses with Bots
Flow Process Diagram
Gains
Pitfalls
Tradeoff
Reduced Labour Costs

Better Warehouse Design

Reduced Power Consumption
High Startup Costs

Requires High Sales

Requires Trained Specialist
Causes Structural Unemployment

Upsets Local Government aiming to increase jobs
Conclusion
Robots Installed in Warehouses with Demand

Currently, more workers are present in automated warehouses
Doubles Productivity

Better Fulfilment Quality

Does not halt operation

Lesser power requirements and produce less noise
Difference from Competitors
Video
Amazon Robotics
Supportive structure to help facilitate orders
Suggest items that customer may be interested
Sensors and cameras.
Exit without stopping by cashier
Facial recognition function identifies customer.
Simplifies the paying process.

Amazon Logistics
Done by: Mavis Ng, Chan Ching Wei, Sim Bing Rui, Jarod Chia, Oon Wei Lin
Ye Wen Xiong

Background
Information

Logistics
Initiative

Past Trends
Future Trends
Conclusion
Industry Background
Historical Background
Key Business
Logistics Elements
Ability to Thrive
Jeff Bezos started Amazon in 1994
Website that only sells books
Vision : World's largest bookstore
Expanded in 1999
Largest internet based retailer in the world
Vision: Sell everything from A to Z
Amazon Historical Background
Logistics Initiatives
Amazon Robotics
Amazon Dash Button
Amazon Prime Now
Main driving force in world literature market
Wide variety of products
Produces consumer electronic
What is Amazon all about
Ordering System
Click To Buy
Information collection system
Warehouse and Facilities
Hand pick orders
VS
Machines, Kiva Bots
Slower & labor intensive way
Suitable for smaller size warehouses
Cut down number of workers required
Reduces possibility of human error
Improved accuracy & efficiency
How it support?
Logistics Elements
Third-party logistics
Provider of outsourced logistics services
Measured and customise
Value-added services
Fulfillment center
Locating warehouses far away
Only delivers after receiving order
Source other delivery services
Ability to thrive
Warehouse nearer to customers
Aims to shorten delivery time
Wide variety of products
Different method of shipping
Reliable logistic services
Constantly upgrading
Building smaller fulfilment centers in cities
Aim to deliver orders in few hours
What is this?
Small oval device
Reorder items with just a click
Can cancel their order within timeframe
Order protection function
Dash Replenishment System (DRS)
How it support ?
Increase Amazon’s orders by 70%
Brands are expanding four times faster
29 brands (2015) --> 150 brands (2016)
Orders are taking place over twice a minute
3D Printer-equipped trucks
Advance and recognised
Aid delivery service.
Speed things up
Save warehouse space

Automatic Paying System
Difference from competitors

What is it about?
Prime membership free delivery for 2 hours
Arrives within 2 hours
Add. cost of $7.99 for delivery within 1 hour
Offers 25000 items
Delivers food, groceries, health, beauty, home products
Gains, Pitfalls, Tradeoff
Amazon is the only
EBay use the traditional way
Becoming a threat to competitors
Faster and easier way of ordering
Many brands and manufacturer is attracted
Increase sales
Expected to spend at least $20
$5 tip is also recommend
Uses heavy duty brown paper bag
Free 2-hour delivery
Difference from competitors
Google Express
Adopts similar method of delivery

Foodkick
Deliver within one-hour

Amazon is still first choice
Faster and more afforadable
Offering wide variety of items
Build good relationship
Standard Shipping
Convenience --> Excessive spending
--> Sales increase
Limited variety of brands--> Forced brand loyalty
Trade off : Convenience & Varieties
Same Day Shipping
Prime Now
Gains
Attracts many customers to sign up

Purchase more items

Increase sales
Pitfalls
Seldom purchase item may not be attracted

Fulfilment center built in centralize location
Trade off
Maximizes spaces by reducing variety of items

Unable to collate orders, more delivery trips
Conclusion
Building upon advantage of convenience
Reducing delivery time
Build fulfilment centers at high-density urban areas
Patented in 1999
Purchasing with just 1-click
Eliminates the process of browsing and selection
Thank You!
Q&A
Full transcript