While the cost of storage has remained stable for about ten years, the cost of transport has exploded.Įn Supply Chain, l’apprentissage machine vous permet de mieux organiser vos prévisions, calculs, coûts et flux. The problem with these fast deliveries is the cost of transport. Once again, the strategy is to develop these Prime Now Hub throughout metropolitan France. Prime Now also has only 30,000 references, mainly on so-called “urgent” products (Beauty, Health, etc.). Prime Now: Delivery in less than 2 hours (under certain conditions, notably geographical).Prime: Delivery in less than 48h (for subscribers – 40€ in France).Amazon never sees the products and can never control their delivery time) Drop Shipping (delivery by the supplier, however, this mode is not highlighted on the Amazon site because the customer experience is not controlled, i.e.But their objective is to develop their own service to deliver 50% of orders in advance.Ĥ types of delivery exist at Amazon for the moment: In terms of transport, the majority of deliveries are now subcontracted by Amazon. Amazon send your sold goods to customers.With conveyors or sorting platforms for example, or by buying a company such as Kiva System, which creates robots (now Amazon Robotics). To improve its performance and costs, Amazon is investing heavily in the mechanization of its warehouses. Small products, low sales (80/20 – represent most of the inventory as explained with the Long Tail Strategy).Voluminous / Heteroclite (ABC Classification).Case flow prime: cartons storage where picking is below 1 product (20/80 logic).Pallet Prime: complete cartons of high-demand products (20/80 logic – ABC classification).The algorithm makes it possible to optimize picking, the space used by-products or the frequency of picking to improve the work of warehouse employees. Inside the warehouses, Amazon has a fairly traditional organization, highly mechanized in upstream and downstream flows but always very manual in picking and order preparation.Īmazon’s great strength is to use real-time information to optimize its storage.
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