Amazon benefits from local Logistics players
28 May, 2020
Amazon benefits from Local Logistics Players Amazon is the country’s leading e-commerce platform. It rose to success gradually by implementing its efficient strategies to target the right audience using the right products. Recently, Amazon’s branch in India has about a hundred sellers who make turnovers in millions. The sellers have been very effective by increasing sales by over 200%. The number of sellers in India is lakh and twenty thousand. Amazon has been able to achieve this feat only because of the support it has gained from the local logistics parties who extend their support to carry out various process such as delivery and manage the inventory. Amazon utilizes a high-class warehouse facility at Jamalpur. It is located just off National Highway 48 and is two hours away from the capital city of New Delhi. Amazon operates from many warehouses in Delhi. The newest of these is the Fulfilment Centre (FC), which is one of the world’s largest warehouses and was opened on the 31st of August. The warehouse has over a million cubic feet of storage with high-end technologies like metal detectors and CCTV cameras for surveillance. Workers are employed to work for 20 hours a day to carry out various operations like storing, sorting, packing, unloading and loading. The warehouse houses a fleet of trucks which carry goods to customers and from the sellers. The efficient and powerful integration of technology, manpower and design of Amazon India’s logistics has greatly contributed to the success of the American e-commerce giant. This logistics company initially started in 2013 with one FC near Mumbai. At that time, they were selling only books and music and videos which are just two categories. After that, the company grew and has roped in over 2 lakh sellers and built more than 40 FCs in 13 states. And now supplies to two of the main e-commerce giants in India. Amazon has given more orders and helped this business expand. By doing this, Amazon is, in turn, benefitted as all of its Logistics operations are carried out by these companies. All these successes weren’t achieved instantly. The path wasn’t a bed of roses. All of Amazon’s warehouses have been scrutinized by all tax authorities. Many disputes went on for almost three years until finally, GST came to the rescue. Amazon is just a tool which facilitates sales and marketing on behalf of sellers. When an appointment is made for delivery, all sellers are assigned bays for trucks and a specific time is allotted for each order. All items possess barcodes and labels which contain the description of each item. All goods under the Amazon fulfilment programme are stored and shipped products to customers upon the payment of a fee. Another method is the Easy ship where Amazon ships the goods for some fee. These barcodes are paired, one for the product and one for the location. This method was implemented by Amazon and is used for millions of products even today. Warehouses house millions of products of varying types and dimensions which need to be segregated and arranged properly to avoid confusion. Whenever a worker drops an order or a consignment, all items are scanned and even the barcodes of compartments are scanned. All these goods in the warehouse are displayed on the Amazon website for sale. The entire storage to delivery process is completed within a day. When a customer places an order on Amazon website, this request is sent to the warehouse and workers pick up the required items. The barcode-pairing process very efficiently manages the delivery location of all products. All products are placed on the 1.2 kilometre-long conveyor belt at the Jamalpur facility. Here, all orders are separated. Then these labels are fixed contain all details like the name and address of the customer. The mode of transportation required is also decided and noted. A weighing scale at the labelling station matches the information received to ensure that the right product is being despatched. Finally, a group of workers manually sort out from another conveyor belt based on the mode of transport. This is what happens round the clock at this facility. These processes will be more efficient if automated as it is at Amazon USA. These various processes are how Amazon makes use of the various Logistics and Supply chain based in India. Thus, Amazon is the leader when it comes to e-commerce in India, thanks to the cooperative assistance provided by the local Logistics providers.