Optimising Supply Chain Management With Amazon Fulfilment Services

Optimising Supply Chain Management With Amazon Fulfilment Services

The e-commerce world has rapidly grown over the past decade. As more consumers and businesses go digital, online sales have skyrocketed and account for 19% of total worldwide retail sales. With the business environment in a constant state of evolution, it's essential for you to adapt to changing market and customer demands to edge out competition as an e-commerce store.

Moreover, as an e-commerce business, your supply chain is one aspect of your business that you can use to gain market edge. When you provide seamless delivery services to your customers, it builds the business's reputation and helps you retain your client base. This is where Amazon fulfilment services shine. Amazon fulfilment can help you optimise your logistics services through low-cost, reliable and fast delivery.

Furthermore, leveraging Amazon fulfilment services can help you ensure your customers enjoy a seamless shopping experience. This article will discuss how you can optimise supply chain management with amazon fulfilment services.

How Can Amazon Fulfilment Services Optimise Your Supply Chain Management?

Amazon has a fulfilment network that utilises technology, processes and fulfilment centres to optimise your supply chain and improve customer satisfaction. It also has a vast distribution network that ensures your consumers get their orders on time, allowing you to maintain a high level of efficiency. Below are some of the ways Amazon fulfilment services help to optimise your supply chain.

Enhanced Operational Efficiency

Amazon has a wide array of experience and expertise in areas like inventory optimization, warehousing and transportation management. By becoming an amazon authorised partner and utilising fulfilment by Amazon (FBA), you’ll be able to manage your supply chain more effectively.

Furthermore, outsourcing to Amazon fulfilment services can also enhance your operational efficiency by helping focus on the main aspects of your business like sales, marketing or product innovation.

Streamlined Distribution and Warehouse Management

In the case of products that the business sells, Amazon has several fulfilment centres that aid in the improvement of distribution and warehousing. All of these centres have some technological facilities such as automation systems, and robots used for dealing with volumes of orders.

In addition, they are fitted with tracking and tracing applications which enables your customers to monitor their order and be updated with the status of their consignment. It provides you the advantage of attaining better and efficient warehousing and sorting of products and services. Also, Amazon’s facilities are stocked to meet your needs and your products are made readable for product processing and safely-stored, thereby increasing speed and decreasing time to ship.

Improved Shipping and Delivery

What is striking about Amazon fulfilment services is the fact that the company offers dependable, quick and efficient delivery options. They have diverse means of delivery such as Prime Air and trucks to make sure the goods get to your customers on time. Their catalogue of service also provides you with the leeway to give the consumer a number of delivery service options.

Additionally, they have an extensive network of carriers and point-to-point automated systems that will cut down on shipping delays and ensure effective transportation. You have no worries that customers will be complaining of your shipping cost since Amazon has various offers on shipping that will be of benefit to your customers. So, if you use Amazon fulfilment services you will be able to enhance customer loyalty and satisfaction realised through effective, efficient and punctual deliveries.

Streamlined Inventory Management

Amazon has a complex system of forecasting with which it estimates the likelihood of a particular product’s demand. Through amazon fulfilment services, you gain real time information on the stock demand and therefore ensure that you do not overstock or under stock your products.

Also, they incorporate product-picking robots with the purpose of sustaining productivity and minimising errors. They also make use of a cross-docking system in which your products are received in the store and dispatched directly to the transport trucks for distribution without any storage. This increases delivery time and helps you take note of what’s left in your inventory.

Reduced Operational Cost

It is a costly affair to run a business. Since it forms part of a service package as an e-commerce company, running a fulfilment centre in addition to your services may be a little expensive especially if you are handling a huge order. With Amazon’s fulfilment services, you will not require logistics personnel or the physical infrastructure and tools which are involved in the logistic process. This will also assist you in reducing cost of logistics and the warehousing space, thus making efficiency of the entire business operation and its reduced overhead costs a reality.

In addition, by becoming an Amazon authorised partner, you will also be in a position to cut down on several fees and save through well-coordinated processes. The company has well-developed channels of distribution and a very large economy of scale which reduces the cost of shipping and warehousing. The savings achieved on these processes enables your company to channel such money to the other areas of the business to maximise on revenues and business development.

Strategic Advantage of Amazon Fulfilment Services

Amazon Fulfilment services has several advantages: As a seller, you get to enjoy the logistics network of Amazon, which enables you to opt for cheaper and faster means of delivering your products. Your customers who shop for your goods through and deal directly with Amazon will have an enhanced and much more efficient shopping experience, making them more loyal to you. Also, providing products with the shortest time turnaround will give you a competitive edge over other e-commerce companies.

Conclusion

Supply chain Management is very relevant if you want to grow your business and satisfy customers. When selling your products through Amazon’s fulfilment services, you stand to benefit from effective inventory control, low cost, effective shipment and sophisticated warehousing and distribution.

Further, with amazon fulfilment services you will be able to leave all logistics to amazon and concentrate on the core business of your company; Thus, experiencing a more efficient supply chain that fits the market necessities and changes.