Nowadays you can get almost everything delivered to your doorstep, from groceries to refrigerators, from SD cards to smartphones, from clothes to washing machines, and what not, everything’s just a click away. In a few countries, you can even get a Tesla delivered straight to your garage. As a consumer, you just need to know what you are looking for, choose the right deal and place the order. So, what happens after you place an order? While you sit back and relax after placing an order, quite a few things happen before the E-commerce delivers your package. In this article, we explain everything you need to know about E-commerce logistics and supply chain management.
Although every E-commerce company follows the same business model, we chose Amazon as an example in this article for easy understanding.
After the customer places an order, Amazon’s backend system starts working and checks if the ordered product is from a third-party seller or from Amazon itself. Because Amazon takes a cut from every third-party seller’s product sold. Most of the orders are delivered from Amazon’s warehouses, it has its warehouses all over the world. Amazon has mini-warehouses in smaller areas for faster deliveries. The products are stocked using an algorithm that predicts the types and number of products being ordered from each region.
The products from the warehouse are sent to the nearest fulfillment center, where a picker finds it and then packs it and places it in a truck that is out for delivery. In some cases where the size of the product is small, instead of sending out a delivery truck, they assign the delivery to a delivery driver who is on a bike or a motorcycle.
Supply chain management:
Amazon’s supply chain comprises warehousing, delivery, technology, and manufacturing. As mentioned earlier Amazon is an expert in warehousing, its model makes the process of accessing the products pretty easy. Its warehouses are placed near metro areas and also near smaller areas. It offers single-day delivery which is known as Prime delivery where you get your package delivered right on the day of ordering. Amazon uses technology to its fullest like using automation and robotic solutions to pick and pack orders and also to stack and store the inventory. Amazon also manufactures its own products which are similar to that of the third-party products as it costs less and brings more profits to them.
This is how E-commerce companies work with few changes depending on the company. But as of now, there is no other E-commerce company whose logistics and supply chain management are as sophisticated as Amazon’s.