Section IV: Supply Chain

Section IV: Supply Chain

Those who sell on the Amazon platform have different objectives with their products. However, the company s to have its products sold at the right time and the correct prices. It can achieve this thanks to an effective supply chain. Being the newest product in the market by the company, Amazon wants Amazon Echo Spot to be well patronized. Thus, its supply chain is designed to reduce lead product times. The main activities entail manufacturing using the appropriate technologies, reducing the product lead times, and timely delivery ones the customers place their orders.

The main attributes of the company’s distribution approach are manufacturing, warehousing, technologies, delivery of the products to the customer. They are as detailed below.

Warehousing

Some of the marketing successes registered by the company regarding this product are hinged on the warehousing aspect. It is tailored to ensure that the Echo Spot products are readily available and accessible to the clientele for secure patronage. The company serves that the global market is meaning that its products are available to every customer. All of Amazon’s warehouses are strategically located close to big metros as well as population hubs. Its inventories are spread in different locations to ensure that the supply chain meets that demand by the customers. Being a new product in the market, the customers want to have it available.

The company ensures that there are small warehouses in smaller regions as a way of ensuring that customers can make orders and that they are delivered within the shortest time. This approach is regardless of the product being purchased. The optimization is done internally. Everyone has five unique storage regions. This organizational strategy is crucial since it allows every team member as well as pick-and-pack robots to pull products promptly, thus moving them close to delivery. At this point, the idea is to ensure that customer orders are delivered on time to enhance customer satisfaction. This aspect is the pillar of its operations.

Delivery

The delivery function is vital to the marketing successes enjoyed by the company. The company giants an edge through the diversification of the delivery options. The delivery times are designed to ensure that the customers get their products at the fastest options. For instance, Amazon has the free, prime now, two-day excellent deliveries, among others that help customers get their products almost immediately the place orders.

The aim of the delivery function in the supply chain is to ensure that the customers get their products at the right time. There are instances when the customers can get their preferred products in their backyards through drones. The aim of all these is to inspire customer loyalty amongst its target market. Timely delivery is essential since it will make the customers have confidence in the organization that it can indeed deliver their Echo Spot products once they purchase them.

Technology

The Amazon supply chain makes the most of technology. Amazon has applied robotics and numerous automation both in picking and packing customer orders as well as inventory management. These tools are used in enhancing the company’s efficiency as well as product delivery speeds. In this way, the company can cut down on warehousing as well as the costs meant for staffing. Through the application of Amazon Prime Air, the company can deliver the orders at the quickest time possible.

The drone approach is aimed at ensuring that the customer gets their products in less than thirty minutes after the order is placed.

Manufacturing

Amazon Echo Spot manufacturing is not outsourced for the sole purpose of lowering the manufacturing cost. This product is branded to enhance product visibility. Despite the company being one of the biggest online retailers globally. It is continually implementing ways that can make it better at all times. Thus, it can withstand the pressure that comes with the competitive nature of its industry of operations.

Automation

As of 2012, the company has enhanced its automation as well as the robotic warehouse solutions known as Kiva Systems. In 2015, the company revamped and renamed Amazon robotics. Using this approach, the Amazon Robotics is designed to pick, pack, and deliver the orders with human assistance. This enhancement helps that company to execute its warehouse activities promptly and with much efficiency. This delivery is finding more use with each passing day. The company wants this to be its future. With less human input, the robots are trained to deliver the goods quickly so that the consumers can have confidence in the company.

While the firm has enhanced its utilization of robots in its warehousing activities its online retailers have relatively taken time to buy into the idea. Thus, the traditional delivery approaches are most preferred by the customers. However, the company wants to mobilize the idea on robotics to make its operations efficient.