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It doesn’t sound like an ad, but… How can Amazon deliver orders faster than its competitors?

  • May 20, 2024
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Nowadays we prefer to buy most of the things we need where we live. So much so that we even choose electronic appliances and furniture and add them

It doesn’t sound like an ad, but… How can Amazon deliver orders faster than its competitors?

Nowadays we prefer to buy most of the things we need where we live. So much so that we even choose electronic appliances and furniture and add them to the cart without going from store to store. The next thing we know, Delivered to our door the next day with Amazon!

Agree What’s the secret to Amazon’s speed?

The reason behind Amazon’s ability to deliver freight so quickly lies mainly in its demand forecasting strategy.

Amazon

In fact, most online shopping sites, including Amazon, can predict how many of the different products customers want It works with a large number of data scientists in various cities and metropolitan areas.

Various studies and demographic data play a role in this. Moreover Artificial intelligence for customer demand forecasting has been used.

Again, unlike retail warehouses, e-commerce warehouses automatically renew their inventory as it decreases.

of products in the warehouse Positioning based on demand instead of category This is another trick that speeds things up. So in Amazon warehouses; There are no toy, food or book sections.

When a product arrives at the warehouse, employees place it on a shelf, scan the shelf’s barcode, and so on Know exactly where the product is. In this way, the products that need to be delivered to the customer are delivered much faster.

To maintain this speed, the most ordered products are again: in the most easily accessible location of the warehouse is placed.

On the other hand, a technique called cross-loading also contributes to this speed.

Amazon

The idea of ​​cross-docking aims to reduce the need for storage as much as possible. So employees; without having to worry about shelving, classification and storage If possible, it transports the products directly from the incoming trucks to the trucks going to the destination.

It’s like planning, coordination and transportation It’s a game. This way, Amazon employees coordinate timing and products reach their buyers much faster.

Sources: How Things Work, Tech Vision

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