Amazon supply chain management

Storage, distribution, inventory management, and other tasks are the responsibility of
the Amazon supply chain. To further grasp this, let's first examine the two fulfillment
methods that sellers and vendors typically use: FBA and FBM.

FBA (Fulfillment by Amazon)

Sellers who use Amazon FBA don't have to worry about any part of fulfillment because
Amazon handles it all. This fulfillment option is used by many third-party retailers. They
only need to have their products shipped to an FBA center. Amazon will be in charge of
organizing the storage, packaging, and shipment of the goods once they arrive at the
fulfillment center. We will handle every part of delivery. Amazon also takes care of
product returns, swaps, and customer help for any problems relating to purchases.

FBM (Fulfillment by Merchant)

The practice of some sellers handling their own product warehousing, packaging, and
delivery is known as FBM. They will handle all of the fulfillment tasks associated with
their products on their own.

To support the extremely quick delivery options they provide their clients, they have
state-of-the-art logistics and their own Amazon supply chain software in place. With
same-day shipping and two-day shipping options available with an Amazon Prime
subscription, Amazon has cutting-edge machinery like robots and other systems in
place to guarantee customer happiness.

Warehousing
The fulfillment by Amazon (FBA) center is where the process starts once a customer
puts an order for a product on Amazon. After being selected and matched with the order
barcode, the product is packed and prepared for delivery to the consumer. Large
warehouses operated by Amazon exist all around the world and are used for a variety of
purposes.
Random storage for tiny goods with moderate demand, reserve storage for products
with irregular shapes and lesser demand, and Pallet Prime storage for high demand and
full case products are the storage areas that are uniform to all of their facilities. These
are a few of the warehouse kinds that Amazon offers as part of "Prime Now" for keeping
goods that fall into a specific category but are in great demand. They demand delivery
within 1 to 2 hours of the purchase being placed. Dry grocery, perishable, and frozen
food items are intended for pantry warehouses.

Along with having employees on-site, Amazon's warehouses have many of its
operations automated. They also use robots to streamline the sorting, picking, and
packing processes as part of their superior technology.

Delivery
Depending on whether they are Prime members or regular consumers, Amazon offers a
range of delivery alternatives for customers to select from.
Additionally, they provide No-Rush Shipping, which is perfect if you don't require your
product right away. This choice offers a savings and 6-day product shipping.
Additionally, there are options for Designated Day, Release Date, First Class, and Free
Super-Saver deliveries.

Amazon uses vehicles for delivery and transportation, and they even have a service
called cargo Amazon Air that they use to fly their items. The package delivery system at
Amazon relies heavily on its fleet of trucks, which is always expanding. Drone use has
also resulted in a futuristic method of accelerating deliveries. They also have vans and
bicycles available.
Recommendation
As efficient as it may be, everything comes with a host of problems or there are always
some risks involved.

Customer happiness might be impacted when Amazon supply chain analytics predicts
demand for specific products erroneously. The forecast's reliance on a product's past
sales data and current patterns is an issue. When making judgments on storing up for
the busiest shopping seasons, this cannot always be depended upon. By using a
solution like SellerApp's Profit Dashboard, a seller analytics software, they may obtain
precise sales information and manage your inventory well. They won't encounter any
obstacles this way when trying to stock up just enough.

Ensuring the quality check directly at the Supplier end. For instance, the material
inspection and processing is done before it is packed at Supplier, ideally meaning that
Amazon ties up with only standard suppliers and not with some wholesalers.

In western countries, mainly America, Amazon is well known. Customers there can use
it to place a purchase on Amazon. People rarely buy things on Amazon in some
countries, such as the Philippines, but those in positions of privilege can only afford to
buy one thing. Furthermore, Amazon does not provide cash on delivery, which prevents
buyers from placing orders. It would be preferable in this situation to implement a cash
on delivery payment mechanism so that customers may enjoy online shopping and also
expand the Amazon retail outlet for the benefit of the customers.