Question

What systems did Amazon develop to improve the flow of products from suppliers to Amazon fulfillment centers? What systems improved the flow of orders from the fulfillment centers to customers?

Answer 1

Answer-
Supplier to Distribution Centers: Amazon has helped develop and implement software to more accurately forecast purchasing patterns by region giving suppliers a better idea on delivery dates and volume of product. This system has reduced the mishandling of inventory by 8%. The expansion of their “fulfillment” centers has allowed suppliers to easily stock and maintain their inventory in amazon’s distribution centers. Distribution Centers to Customers: Spending a year working on its telecommunications network, Amazon has increased their system speed to process more orders competently. This system has helped ensure all items are included in the delivery of the product. The expansion of their “fulfillment” centers allows amazon to keep millions of products on-hand and ship them in a timely fashion. Amazon.com stocks all products in several large distribution centers in different regional areas. They use computer software that shows purchasing patterns in each individual region. Lost or delayed purchases have declined from 12% down to 4%. Telecommunication networks have greatly improved the flow of orders by using computers as the main insurance that all products are included in the purchasing bow. The system is being approved upon; as the failure rate goes down, it will improve the efficiency more and more.