A Complete Guide to Amazon Supply Chain System

Amazon’s supply chain system is a case study because of its success and efficiency. The e-commerce space is expanding and growing in leaps and bounds. While business owners are still figuring out solutions to logistical challenges, Amazon has built a systematic order fulfilment software that is practical and highly functional. Here is a quick and complete guide to the Amazon supply chain system for you to learn from if you are a business owner venturing into the world of e-commerce.

Amazon’s Supply Chain System

Before we take a deep dive into Amazon’s supply chain management, you need to first understand the key Amazon fulfillment services that sellers and vendors use on the platform.

Fulfillment by Amazon or FBA

One of the most popularly used tools by sellers and vendors is the Fulfillment by Amazon option. All a vendor or a seller has to do is send their sourced products to an FBA centre and Amazon takes care of the rest. From packaging to delivery to even exchanges and returns, everything falls under the purview of the e-commerce giant through FBA – thereby eliminating delays and misplacements.

Fulfillment by Merchant (FBM)

This Amazon fulfillment services option is usually picked by merchants that have their supply chain management systems. From packaging to delivery, everything is taken care of by these merchants. They usually have their own Amazon supply chain management software that allows them to prevent delays and ensure super-fast deliveries.

Amazon’s Supply Chain Management and Operations

Amazon has a massive warehousing arrangement, which allows the fast delivery of products without any damages. These warehouses are categorized to ensure safe and proper storage and delivery. From dry grocery to books and magazines, Amazon has warehouses to store every type of product that they offer.

The moment a product is ordered by a customer, the Amazon fulfillment service sets the ball in motion at the FBA centre. The products are picked and matched with the order barcode, packed, and then shipped off to these warehouses. There are Sortition centres where the products are sorted as per delivery geographies and then sent to delivery stations from where last-mile logistics are taken care of.

Another reason for the high level of efficiency of the Amazon Supply Chain system is that a lot of processes are automated in these warehouses. Although there are on-site workers, automated processes kick in and speed up the order management process.

Delivery

Amazon has set a precedent in the e-commerce world with its order fulfillment software. It offers a wide range of delivery options for its customers. Amazon Prime members have the option of choosing same-day, one-day or two-day deliveries along with the privilege of choosing delivery within 1-2 hours!

Furthermore, the e-retail giant offers a No-Rush Shipping option with discounts, designated day deliveries, release date deliveries, first-class, and even free-super-saver deliveries!

What is mind-boggling about the Amazon supply chain system is that most deliveries are on time, with the products in perfect shape and condition. This is simply because of the logistical web that Amazon has put in place to ensure that its customers are satisfied and happy. From trucks to the cargo Amazon Air, the e-commerce giant has a massive network of transportation methods that ensure that its products reach its customers on time! It has also started using bikes and vans for deliveries now!

Want to explore similar order fulfillment software for your own e-commerce business? Get in touch with eSellerHub now!

Building Software Solutions For a Successful e-Business

At eSellerHub, we are completely focused on delivering bespoke solutions driven by your online business logic. We do not believe in providing you with a generic solution. We understand that every business has different goals and a specific way of conducting business across multiple marketplaces. To know more about online fulfillment software that we can build and customize for you, you can get in touch with us by writing at contact@esellerhub.com or calling us at +1 408 600 0534.