Amazon was founded in the US in 1994 by Jeff Bezos and now has rose to fame being one of the most recognizable brands in the world. To get to this point of people’s daily lives interacting with one of Amazons multiple products be that Amazon prime Video, eBooks, Alexa, Ring doorbell, Deliveries and many more. An optimized supply chain with different parts moving simultaneously is the reason for this. In this article we’ll discuss the amazing supply chain of Amazon.
What Happens After You Submit Your Order?
Receiving Products- At Amazon Fulfillment Centers (FCs), products are either taken from trailers and put into pallets. The separation of freight occurs between those that are coming from an Amazon facility and those from third-party vendors using Fulfillment by Amazon (FBA). Half of the items sold by Amazon comes from smaller business and individual sellers.
Storing- Amazon stores its items randomly. Amazon has yellow tiered bins with random items all tracked by computers.
Picking- When you’ve clicked the “buy button”, and your order comes in, a robot will bring pods full of items to workers at pick stations. These pickers assort the item and place it into a yellow plastic box, to go onto the next stage of the fulfilment process.
Quality Check– Amazon’s Scan label apply manifest (SLAM) robot makes sure that the item’s physical location matches what’s in the computer. Any anomalies with the item and the information that the robot has would cause for that package to be manually checked.
Packing- Finally, items that belong to different shipments will be organized and scanned before being sent for packing. At that point the system will recommend box sizes to employees and measure out the amount of tape required.
Delivery- At a delivery station, an Amazon employee sorts the package according to its route, and a delivery driver loads the package onto their delivery vehicle. This vehicle can be one of Amazons extensive delivery options, Rivian Electric Van, Drone or Scout robot.
Innovations
Kiva- Kiva systems were purchased by Amazon in 2012 and now known as Amazon robotics. It is a small compact robot that is used in Amazon FCs around the world. Their imbedded technology read barcodes on the floor to know when and were to move, similar to a train on a train track. They allow for FCs to have 40% more storage capability, which makes it easier to fulfill amazon prime orders more efficiently.
Hercules- Dubbed the ‘cousin’ of the Kiva the Hercules is another type of robot Amazon utilizes in their fulfillment process, which is used for heavy lifting, with a carrying capacity of 3000 pounds.
Pegasus- A new improved version of the Kiva. The Pegasus is smaller more dynamic and has an improved carrying load of 560kg and are cheaper to make. However, Amazon will not replace the Kivas in their current fulfillment centers as they deem this too costly and see the implementation of the Pegasus in their supply chain when new fulfillment centers are built near high population densities. As this new robotics can fulfill orders at an even faster rate.
SLAM robot- (Scan label apply manifest) is used in quality checking phase. It weighs the product and compares the expected weight of the item. If there is an error the package is checked manually.
Amazon drone- Used in last mile delivery, can fly up to 15 miles and carrying as much as 50 pounds. Depending on the customers location, deliveries can be made within 30 minutes.
Amazon Sparrow- Leverages computer vision and artificial intelligence (AI), Sparrow can recognize and handle millions of items. This technology enables Amazon to operate efficiently and safely. Sparrow will take on repetitive tasks, enabling employees to focus their time and energy on other things, while also advancing safety.
Final Thoughts
Since the company’s inception, Amazon has been at the forefront of innovation. The company has constantly adapted its practices and business model to suit the current trends of the market. Once known as the place you purchased books online. Amazon adapted to a point where you can now purchase most things and have it delivered to your doorstep in a matter of days or minutes! From the dot.com bubble bursting at the turn of the millennia, the 2008 financial crisis, the rise of internet and e-commerce and in recent times the global pandemic. Amazon has continued to show resilience and forward thinking to thrive where many others have failed. This company is now a staple of peoples lives and shall be a blueprint for others to follow.
