Amazon speeds up delivery, reduces costs, carbon footprint, and reshapes inventory management.
On May 13, Amazon.com Inc said that it has implemented a number of changes to optimize the distribution network of goods after the pandemic. These new solutions allow them to speed up deliveries, reduce costs and reduce their own carbon footprint.
In the past, Amazon has traditionally operated a national delivery network, delivering successful orders from warehouses stretching across the country. If a local warehouse doesn't have a product ordered by a customer, the platform will ship that product from another region.
However, long distance transportation is much more expensive. Delivery time is also extended. Amazon CEO Andy Jassy said cutting time and costs is a "critical challenge" for the company right now.
An Amazon parcel is packed, ready for delivery in Manhattan, New York (USA), January 29, 1. Image: mike segar
In pursuit of the goal of increasing profitability, the company created eight new warehouse locations in some remote areas, optimizing service range and reducing shipping distances. According to Jassy, each of these areas will have many suitable, spacious options and operate mainly in the direction of self-sufficiency and self-sufficiency. Goods at the new warehouse can also be shipped nationwide in case of need.
This new orientation helps the e-commerce giant to reshape its inventory management system and search capabilities. This is a way to help goods and products of partners display more effectively and target the right target audience.
Consumers can easily find the items they want to buy from the right stores closest to them for faster shipping. In contrast, the delivery process is shortened, it is estimated that up to 12% of the points of check and storage before the parcel needs to go through.
Many experts and platforms commented that now is the time when consumer demand declines due to signs of economic recession and high inflation. Amazon and other online retailers are mostly in the process of trying to cut back on delivery and return costs.
With Amazon, this week they rolled out a $10 discount on shipping for shoppers so they can pick up their items at their own doorstep or pick-up location. instead of home delivery. This move shows that despite capturing a lot of market share, major online shopping platforms still have to cut costs to keep up with the times.
In the past few months, the "big" in the e-commerce industry has cut about 27.000 jobs to optimize costs. Amazon is also starting to charge an extra $1 for customers who request a return if a Whole Foods, Amazon Fresh, or Kohl's grocery store is near their delivery address.
Thy An (Follow Reuters, CNN)
