BLOG: AMAZON E-COMMERCE. WHAT THEY ARE DOING, WHAT IT CAN MEAN, AND WHAT COMPETITORS SHOULD DO. 1 OF A SERIES

Amazon has redefined selling and retailing with its e-commerce order delivery velocity.  It is not enough to buy online, they set the bar for how quickly customers receive their orders.  They did this by make weaponizing and making supply chain management strategic.

They move inventory with speed through their end-to-end supply chain. That enables them to offer the Perfect Order--delivered complete, accurate, and on time.  This is the best company performance metric.  Bar none.

LTD will offer insights and observations on what Amazon is doing and/or what competitors are nto doing.

Amazon has built a network of distribution centers that are aligned to their customers.  These enable them to pick orders and deliver them quickly because they are close to customers.  The warehouses are large and use technology.  Here is a recent article on what Amazon is doing with robotics:
https://www.supplychaindive.com/news/amazon-invest-40m-robotics-hub/566736/

The challenge for retailers, manufacturers, and e-tailers who do not have the deep pockets to spend this kind of money is how to compete against it.  This can be done with the New Supply Chain--similar to what Amazon is doing--but with an emphasis on process, not this scale of technology.

I will provide other observations on the New Supply Chain that has elevated e-commerce to a global phenomenon.

For more on the new supply chain, its complexity, end-to-end velocity, and more read the white papers: www.ltdmgmt.com