{"id":1188,"date":"2016-07-08T13:06:50","date_gmt":"2016-07-08T11:06:50","guid":{"rendered":"http:\/\/en.advancedfleetmanagementconsulting.com\/?p=1188"},"modified":"2016-07-08T13:06:50","modified_gmt":"2016-07-08T11:06:50","slug":"1188","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2016\/07\/08\/1188\/","title":{"rendered":"Customer centric logistics: Amazon\u2019s supply chain success case"},"content":{"rendered":"<p><a ref=\"magnificPopup\" href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Customer_centric_logistics_Amazons_supply_chain_success_case.jpg\"><img loading=\"lazy\" class=\"aligncenter wp-image-1189 size-full\" title=\"Customer centric logistics: Amazon\u2019s supply chain success case\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Customer_centric_logistics_Amazons_supply_chain_success_case.jpg\" alt=\"Customer_centric_logistics_Amazons_supply_chain_success_case\" width=\"760\" height=\"315\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Customer_centric_logistics_Amazons_supply_chain_success_case.jpg 760w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Customer_centric_logistics_Amazons_supply_chain_success_case-300x124.jpg 300w\" sizes=\"(max-width: 760px) 100vw, 760px\" \/><\/a><\/p>\n<p style=\"text-align: justify\"><span style=\"color: #3366ff\"><a style=\"color: #3366ff\" href=\"http:\/\/www.amazon.com\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Amazon<\/strong><\/a><\/span> is one of the most known e-commerce companies in the world, and its <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/01\/12\/7-challenges-logistics-managers-face-everyday\/\" target=\"_blank\" rel=\"noopener noreferrer\">logistics<\/a><\/strong><\/span> and <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/02\/28\/what-variables-should-you-measure-to-optimize-your-supply-chain\/\" target=\"_blank\" rel=\"noopener noreferrer\">supply chain<\/a><\/strong><\/span> model \u2013with a customer relationship management algorithm combined with simple third party delivery systems- is the envy, challenge and (possibly) a threat for many actors in the industry. What\u2019s behind this case?<\/p>\n<p style=\"text-align: justify\">According to the site\u00a0Amazon.com, the company looks to be:<\/p>\n<blockquote>\n<p style=\"text-align: justify\"><strong>&#8220;Earth&#8217;s most customer-centric company where people can find and discover virtually anything they want to buy online&#8221;<\/strong><\/p>\n<\/blockquote>\n<h5 style=\"text-align: center\"><span style=\"color: #0000ff\">Join to The Fleet Management Group<\/span><\/h5>\n<p style=\"text-align: justify\"><a href=\"https:\/\/www.linkedin.com\/groups\/8603639\"><img loading=\"lazy\" class=\"alignnone size-full wp-image-1677\" src=\"http:\/\/en.advancedfleetmanagementconsulting.com\/wp-content\/uploads\/2017\/04\/Logo.jpg\" alt=\"Logo\" width=\"3995\" height=\"882\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2017\/04\/Logo.jpg 3995w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2017\/04\/Logo-300x66.jpg 300w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2017\/04\/Logo-1024x226.jpg 1024w\" sizes=\"(max-width: 3995px) 100vw, 3995px\" \/><\/a>In this group, you can know and share knowledge, experiences and meet people interested in Fleet Management over the world. Each week we publish posts, conferences, news, scientific papers, and technology related to Fleet Management.<\/p>\n<p style=\"text-align: center\"><span style=\"color: #0000ff\"><strong>The fleet management group<\/strong><\/span><\/p>\n<p style=\"text-align: justify\">It began in 1995 as a website to buy books, growing to be a multimillion dollar company.\u00a0 Today, Amazon.com operates retail websites and offers platforms that enable third parties to sell products,\u00a0offering categories such as Books; Movies; Music; Video Games; Electronics &amp; Computers; Home &amp; Garden; Tools; Toys; Kids &amp; Baby; Grocery; Health &amp; Beauty; Clothing; Shoes &amp; Jewelry; Health &amp; Beauty; Sports &amp; Outdoors; and Automotive &amp; Industrial.<\/p>\n<ul style=\"text-align: justify\">\n<li><strong>97,000<\/strong> full-time and part-time employees worldwide<\/li>\n<li>Over <strong>2 million<\/strong> third-party sellers<\/li>\n<li>In 2015, its net sales amounted to <strong>US$10bn<\/strong><\/li>\n<li><strong>304 million<\/strong> global active customer accounts<\/li>\n<li><strong>Millions<\/strong> of unique, new, refurbished and used items, from books to automotive<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><strong>In-house<\/strong>, the company serves all its clients in the United States with inventory placed in only a handful of warehouses. \u201cEach Amazon warehouse pools demand over a large geographical area, leading to more stable forecasts and lower total inventory\u201d, <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/citeseerx.ist.psu.edu\/viewdoc\/download?doi=10.1.1.462.3476&amp;rep=rep1&amp;type=pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Sunil Chopra and ManMohan S. Sodhi<\/a><\/strong><\/span> wrote for \u00a0the MIT Sloan Management review. On the other hand, Amazon has a reduced number of echelons. \u201cThe retailer echelon, considered an efficient mechanism to improving supply chain dynamics, is by-passed in the information and material flow through the use of ICT\u201d, according to <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"https:\/\/www.researchgate.net\/profile\/Mohamed_Naim\/publication\/228776579_Assesing_the_impact_of_e-business_on_supply_chain_dynamics._Int_J_Prod_Econ\/links\/0912f50d05b6190205000000.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">S.M. Disney, M.M. Naim, and A. Potter<\/a><\/strong><\/span>, who have studied the impact of e-business on the supply chain and underline<\/p>\n<p style=\"text-align: justify\">With its\u00a0third party <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"https:\/\/www.driv.in\/en\/how-your-logistics-management-can-improve-your-customer-satisfaction\" target=\"_blank\" rel=\"noopener noreferrer\">logistics management<\/a> <\/strong><\/span>automation model, Amazon.com collaborates with suppliers such as ProLogis, the largest US-based global provider of integrated distribution services, with more than 1,500 distribution facilities owned throughout North America and Europe, according to academics Calin Gura, Ashok Ranchhod, and Ray Hackney.\u00a0 As the company works with direct mail shipping, the company uses mainly \u00a0DHL services through comprehensive kits installed at Amazon sites to produce bills, invoices, and reports.<\/p>\n<p style=\"text-align: justify\">According to <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/computer-programming-textbooks.info\/wp-content\/uploads\/pdfs\/Business%20the%20Amazoncom%20Way%20%20Secrets%20of%20the%20Worlds%20Most%20Astonishing%20Web%20Business%20by%20Rebecca%20Saunders%20-%20Boring%20Business%20Buzzwords%20.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Business the\u00a0Amazon.com\u00a0Way: Secrets of the World\u2019s Most Astonishing Web Business, Rebecca\u00a0Saunder<\/a><a style=\"color: #3366ff\" href=\"http:\/\/computer-programming-textbooks.info\/wp-content\/uploads\/pdfs\/Business%20the%20Amazoncom%20Way%20%20Secrets%20of%20the%20Worlds%20Most%20Astonishing%20Web%20Business%20by%20Rebecca%20Saunders%20-%20Boring%20Business%20Buzzwords%20.pdf\">s<\/a> <\/strong><\/span>claims that their central philosophy to align distribution and <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/01\/12\/the-importance-of-metrics-for-logistics-managers\/\" target=\"_blank\" rel=\"noopener noreferrer\">logistics<\/a><\/strong><\/span> with strategic plans.<\/p>\n<p style=\"text-align: justify\">The\u00a0<span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"https:\/\/www.google.cl\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwjy14q9g7zMAhVFl5AKHWdsCp0QFggbMAA&amp;url=https%3A%2F%2Fmscisyaminimishra.files.wordpress.com%2F2012%2F10%2Famazon.pdf&amp;usg=AFQjCNG_nansLm6JdT0nRhImsqDprOPGbg\" target=\"_blank\" rel=\"noopener noreferrer\">C<\/a><a style=\"color: #3366ff\" href=\"https:\/\/www.google.cl\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwjy14q9g7zMAhVFl5AKHWdsCp0QFggbMAA&amp;url=https%3A%2F%2Fmscisyaminimishra.files.wordpress.com%2F2012%2F10%2Famazon.pdf&amp;usg=AFQjCNG_nansLm6JdT0nRhImsqDprOPGbg\" target=\"_blank\" rel=\"noopener noreferrer\">o<\/a><a style=\"color: #3366ff\" href=\"https:\/\/www.google.cl\/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwjy14q9g7zMAhVFl5AKHWdsCp0QFggbMAA&amp;url=https%3A%2F%2Fmscisyaminimishra.files.wordpress.com%2F2012%2F10%2Famazon.pdf&amp;usg=AFQjCNG_nansLm6JdT0nRhImsqDprOPGbg\" target=\"_blank\" rel=\"noopener noreferrer\">mpany\u2019s management<\/a><\/strong><\/span>\u00a0vision calls tot:<\/p>\n<ul>\n<li style=\"text-align: justify\">Reflect an understanding of customers\u2019 delivery needs<\/li>\n<li style=\"text-align: justify\">Offer both current titles and hard-to-find editions and copies through the use of wholesale suppliers and independent producers<\/li>\n<li style=\"text-align: justify\">Provide a two-day delivery time limit on most orders through the Amazon warehousing setup<\/li>\n<li style=\"text-align: justify\">Enable the customers \u2013 through EDI \u2013 to query the status of their purchases and track their shipments<\/li>\n<li style=\"text-align: justify\">Align supply and delivery to the other firm\u2019s functions such as marketing sales and customer service<\/li>\n<\/ul>\n<h2><strong><span style=\"color: #3366ff\"><a style=\"color: #3366ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/07\/06\/how-logistics-contributes-to-alibabas-outstanding-success\/\" target=\"_blank\" rel=\"noopener noreferrer\">Supply chain<\/a><\/span> network optimization innovations<\/strong><\/h2>\n<p style=\"text-align: justify\">The company has grown exponentially both in their reach and their range of services. According to <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/techcrunch.com\/2016\/01\/29\/is-logistics-about-to-get-amazoned\/\" target=\"_blank\" rel=\"noopener noreferrer\">TechCrunch<\/a><\/strong><\/span>, Amazon\u2018s development process follows a structure:<\/p>\n<ul>\n<li style=\"text-align: justify\">Identify inefficiencies<\/li>\n<li style=\"text-align: justify\">Develop a technological solution<\/li>\n<li style=\"text-align: justify\">Scale the solution into a platform<\/li>\n<li style=\"text-align: justify\">Offer the platform as a novel solution for third-party businesses<\/li>\n<\/ul>\n<h2><strong>Robotized Fulfillment Systems<\/strong><\/h2>\n<p style=\"text-align: justify\">Its warehouses and fulfillment centers work with robots. When ordering items online, the system works out where the item sits in the inventory and dispatches human pickers. Reporters from the <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/www.bbc.com\/future\/story\/20150818-how-algorithms-run-amazons-warehouses\" target=\"_blank\" rel=\"noopener noreferrer\">BBC went to warehouses in the United Kingdom to revise<\/a><\/strong><\/span><\/p>\n<ul>\n<li style=\"text-align: justify\">When an item is collected by hand, the picker scans it with a handheld device to ensure that the correct object has been taken.<\/li>\n<li style=\"text-align: justify\">The shelves themselves are mobile and travel on wheels to stationary pickers who simply lift off the required item.<\/li>\n<li style=\"text-align: justify\">The robot shelves then return to their place.<\/li>\n<\/ul>\n<h2><strong>Direct Freight Business<\/strong><\/h2>\n<p style=\"text-align: justify\">There are future investments which may revolutionize the industry. A report from <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-02-09\/amazon-is-building-global-delivery-business-to-take-on-alibaba-ikfhpyes\" target=\"_blank\" rel=\"noopener noreferrer\">Bloomberg Business<\/a><\/strong><\/span> detailed a multiyear plan to have Amazon compete with UPS, FedEx, and Alibaba. \u00a0Amazon intends to lease planes and register ocean freight booking businesses, to create a \u201cglobal delivery network that controls the flow of goods from factories in China and India to customers\u2019 doorsteps,\u201d according to the publication.<\/p>\n<p style=\"text-align: justify\">According to <a href=\"http:\/\/www.computerworld.com\/article\/3032656\/retail-it\/amazons-supply-chain-move...\" target=\"_blank\" rel=\"noopener noreferrer\">Computer World<\/a>, \u00a0Amazon would be &#8220;amassing inventory from thousands of merchants around the world and then buy space on trucks, planes, and ships at reduced rates. Merchants will be able to book cargo space online or via mobile devices, creating what Amazon described as a &#8220;one click-ship for seamless international trade and shipping.&#8221;<\/p>\n<p style=\"text-align: justify\">Customer Relationship Management and Information Technology are a cornerstone of this strategy, as the company records critical data of customer buyer behavior, to speed up delivery processes before people even purchase a product.<\/p>\n<p style=\"text-align: justify\">For instance, using customs procedures, with useful information to learn what products are being transported, to customize the service and raise profit with a more personalized and segmented current and prospective inventory management.<\/p>\n<p style=\"text-align: justify\"><span id=\"hs_cos_wrapper_post_body\" class=\"hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_rich_text\" data-hs-cos-general-type=\"meta_field\" data-hs-cos-type=\"rich_text\">The model\u00a0was <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"https:\/\/www.google.com\/patents\/US8615473\" target=\"_blank\" rel=\"noopener noreferrer\">patented<\/a> <\/strong><\/span>as a:\u00a0<\/span><\/p>\n<p><a ref=\"magnificPopup\" href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Amazon.png\"><img loading=\"lazy\" class=\"aligncenter wp-image-1190 size-full\" title=\"Customer centric logistics: Amazon\u2019s supply chain success case\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Amazon.png\" alt=\"Customer centric logistics: Amazon\u2019s supply chain success case\" width=\"670\" height=\"474\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Amazon.png 670w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Amazon-300x212.png 300w\" sizes=\"(max-width: 670px) 100vw, 670px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Packaging<\/strong> one or more items as a package for eventual shipment to a delivery address.<\/li>\n<li><strong>Selecting<\/strong> a destination geographical area to which to ship the package.<\/li>\n<li><strong>Sending<\/strong> the package to the destination geographical area without completely specifying the delivery address at time of shipment.<\/li>\n<li><strong>Specifying<\/strong> the complete delivery address for the package, while it&#8217;s\u00a0in transit.<\/li>\n<\/ul>\n<p><a ref=\"magnificPopup\" href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Amazon_2.png\"><img loading=\"lazy\" class=\"aligncenter wp-image-1191 size-full\" title=\"Customer centric logistics: Amazon\u2019s supply chain success case\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Amazon_2.png\" alt=\"Customer centric logistics: Amazon\u2019s supply chain success case\" width=\"710\" height=\"253\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Amazon_2.png 710w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/07\/Amazon_2-300x107.png 300w\" sizes=\"(max-width: 710px) 100vw, 710px\" \/><\/a><\/p>\n<p>We want to address our customers\u2019 continuous improvement process in their <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/07\/06\/1172\/\" target=\"_blank\" rel=\"noopener noreferrer\">supply chain<\/a><\/strong><\/span>, <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/07\/06\/how-logistics-management-innovation-can-help-boost-barnes-noble\/\" target=\"_blank\" rel=\"noopener noreferrer\">logistics<\/a><\/strong><\/span> and <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/01\/12\/increase-roi-with-route-optimization\/\" target=\"_blank\" rel=\"noopener noreferrer\">route planning<\/a><\/strong><\/span> strategies.\u00a0\u00a0Drivin will begin writing a series of case studies about <span style=\"color: #3366ff\"><strong><a style=\"color: #3366ff\" href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/2016\/01\/12\/fleet-management-best-practices\/\" target=\"_blank\" rel=\"noopener noreferrer\">best practices<\/a><\/strong><\/span> in the industry.<\/p>\n<p>What do you think about Amazon\u2019s business model and upcoming innovations? What benchmarks do you see for your supply chain processes?<\/p>\n<p>We would like your comments and suggestions.<\/p>\n<div class=\"blog-section\">\n<div class=\"blog-post-wrapper cell-wrapper\">\n<h4 id=\"hubspot-topic_data\"><img loading=\"lazy\" class=\"alignleft\" title=\" Francisca Howard\" src=\"https:\/\/cdn2.hubspot.net\/hubfs\/1546224\/team\/francisca.jpg?t=1466869571349\" alt=\"Francisca Howard\" width=\"253\" height=\"250\" \/>Writen by\u00a0Francisca Howard<\/h4>\n<\/div>\n<\/div>\n<div class=\"about-author-sec row-fluid\">\n<div class=\"span10\">\n<p style=\"text-align: justify\">Francisca is a commercial engineer by University Adolfo Iba\u00f1ez. She worked 10 years in the retail industry and the last few months she has been working as a business developer for\u00a0<span style=\"color: #0000ff\"><strong><a style=\"color: #0000ff\" href=\"https:\/\/www.driv.in\/\" target=\"_blank\" rel=\"noopener noreferrer\">Drivin<\/a><\/strong><\/span>, a\u00a0SaaS solution that allows to distribution companies to reduce its transport costs as well as increase the service quality of their final clients.<\/p>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon is one of the most known e-commerce companies in the world, and its logistics and supply chain model \u2013with a customer relationship management algorithm combined with simple third party delivery systems- is the envy, challenge and (possibly) a threat for many actors in the industry. What\u2019s behind this case? According to the site\u00a0Amazon.com, the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[32,5,50],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/1188"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=1188"}],"version-history":[{"count":0,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/1188\/revisions"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=1188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=1188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=1188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}