Amazon’s Strong Influence On Logistics Continues

It’s no secret that Amazon is an e-commerce heavy hitter, with its unparalleled choice of products, strong customer service, and lightning-fast delivery. Forrester Research found that the retail giant was responsible for 60 percent of the country’s online sales growth last year, so it’s no surprise that its influence can be seen in the way supply chains, logistics, and retailers are doing business.

One area that has seen a lot of growth is omni-channel demand. Consumers want the ability to buy whatever product they want from wherever they want, whether they are using their phone, computer or tablet. They also want to receive it on their own terms, whether they pick it up in the store or have it delivered to their home or office as quickly as possible. In response to this, many companies are making big investments in technology and warehouse management systems to help keep their back-end processes as streamlined as possible.

New Ways Of Doing Business Require Innovative Solutions

There are a lot more complications to deal with when shipping items to people rather than sending pallets to stores, which means new ways to organize inventory and fulfill orders are being developed. Automation and robotics will be playing a bigger role moving forward.

The best way to shorten lead time is to bring the products closer to customers, and this calls for having multiple warehouses in a variety of strategic places. While this gives customers the shorter delivery times they demand, it also leads to higher inventory costs and often necessitates more delivery trucks.

Moving forward, innovations such as driverless trucks, drones, automated guided vehicles, and platooning will be facilitating the movement of goods. No one can say for sure just where things will go from here, but most savvy retailers will be following Amazon’s lead as we step into the future.

This blog post was based off an article from The Atlanta Business Chronicle. View the original here.

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