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MBA 25.04

Presentation used by UK Graduate Recruitment team to deliver an overview of Operations within Amazon to University audiences.
by

Amanda Fleischman

on 7 May 2018

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Transcript of MBA 25.04

Agenda
Amazon Business Models
Inside Amazon Fulfillment
Insights
PrimeNow
Amazon Robotics
AMZL (Logistics)
Pathways Leadership Development Programme
Case Study
Q&A

Amazon – Beyond the Brand

Amazon’s Business Models

Introduction
“It’s our job every day to make every important aspect of the customer experience a little bit better.”


Founder, Jeff Bezos
Start with the customer and work backwards

Work vigorously to earn and keep customer trust

Pay attention to competitors, BUT obsess over customers

Inside Amazon Fulfillment
- Website Inventory
Sellers with Amazon

FBA (Fulfillment By Amazon)

Amazon Brand Inventory
Inside Amazon Fulfillment
Layout and Flow
Items Received
To Customer
Processes (The Beating Heart of Amazon)


Management of deliveries and unloading of inventory to IB staging area.
Using Dock Master to schedule a delivery appointment.
Update appointment status – arrived, check-in scheduled, checked-in, unloaded, closed

Inbound Dock
Receive
Management of unpacking and virtually adding inventory into the FC.
Physically and Virtually adding items to ‘Tote’ and then placing on conveyor into Pick Tower.

Stow
Process of physically and virtually moving inventory from ‘Tote’ location into ‘Bin’ location
Item is now available on Amazon website to be purchased.

Pick
APS (Amazon Picking System) manages the interface of customer purchase to entering pick scanner of Associate or to Kiva Robot.
Uses an intelligent filter system to find most efficient and fastest route to pick items.
Items are picked and moved to tote to be sent to Pack.

Pack
Items moved to be packed depending on shipment type. Examples - SingleMedium; MultiMedium; MultiXL; MultiWrap.
Spoo Label allocated to shipment and sent to SLAM (Scan-Label-Apply-Manifest)
Sent to Ship Dock sorter via conveyor.

Ship
The Last Mile
Shipments are sorted by carrier at sortation centre.
Loaded onto trailers by CPT (Critical Pull Time) to ensure PDD (Promised Delivery Date).

Life of an Amazon Parcel
Inside Amazon Fulfillment
Capacity Planning and Control

21 Day Plan
Plan vs Live (Volume)
TPH - Efficiency Metric
Backlog Effect
The 21 day plan is the financial planning made by the Production Planning Team (PPT). Its objective is to provide a headcount based on demand forecast.

Plan vs Live
Risks
High Fast Track Charge
Actual Hours in Building
Drop in Productivity Rates
Imbalance of Process
Through Put (TPH) - Efficiency Metric
Volume
TPH
Hours
Example
Volume Predicted = 150,000 units

4 Wk TPH Trend for shift = 50

Predicted Hours needed = 3000hrs

Shift = 10hrs  300 HC needed.

Backlog
The Good, Bad and Ugly
PrimeNow Operations
“Amazon Prime Now enables customers to get orders super-fast; within 1-hour”

Priority picking of less than 1hr.
Higher turnover of inventory.
Orders are assembled (batched) together as routes on dispatch carts, to be undertaken in 2-hour blocks.
These are passed to the drivers at the start of each delivery dispatch window, who collect them by scanning all of the items using a smartphone app.
Transport - across Europe differs including cars, vans, electric vehicles, scooters and cargo bikes!
It’s tradition that Prime Now sites ring a bell to alert the team when a 1-hour order has been placed by a customer.
Amazon Robotics
Amazon Robotics Goal
Smarter, Faster, more consistent Customer experience through automation.

Advantages
Higher density of inventory (up to 50% more than in a legacy site of the same size).
Higher Stow and Pick rates - Some numbers from LTN4 site:
Stow rate before AR: 150 UPH – After AR: 220 UPH
Pick rate before AR: 110 UPH – After AR: 310 UPH

The Area Manager Role
Safety

Productivity

Quality

HR Piece

Process Improvement

Operationally Ready
- At ALL Times
Area Readiness –
Process to ensure the workplace has the correct and operationally fit equipment to ensure productivity is met from the first minute of shift.

5S (Sort, Straighten, Shine, Standardize and Sustain) - All Amazon sites will have floor markings, signage, and traffic routing.

Housekeeping –
Clean environment = Clean thinking

Process Improvement Implementation
Identify Issue
Research/Understand/Data Collection
Resources Required - Manpower/Equipment
Plan/Risk Assessment
Project Start
Manage/Monitor
Project Finish
Evaluate
Communicate Change
Day in the life of an AM
No day is ever the same!!
Advice and Takeaways for working in Operations
Be an Expert in your Process

Learn and Be Curious

Communicate with Clarity

Think SMART

Contingency Planning

AMZL - The Last Mile

AMZL’s vision is to become the carrier of choice globally for highest quality, best value, and most-differentiated capabilities around speed, convenience, and unique selection.
The Vision
Operational Points
Manage our own Shipping methods
Business control of Customer promise
Sortation sites spread strategically
Questions
Kriti Gupta
Pathways Operations Manager
Karolina Kubiak
Pathways Operations Manager
Full transcript