Facility location planning at Amazon
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Help with the way Amazon plans its logistics operations. Then, summarize in a 3- to 4-page paper a discussion on the following questions.
Does Amazon maximize its logistics efficiency through facility location planning? If so, in what ways, using examples? If not, could facility planning improve matters?
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Solution Summary
The document analyzes how facility location planning helps in increasing logistics efficiency at Amazon.
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Logistics System and Facility Location Planning
The aim of logistics system at Amazon is to have best delivery network. The logistics systems is driven by technology to create and develop systems used to drive shipment of products from Amazon fulfillment centers to customers doorstep. Success behind Amazons physical operations is its fulfillment center or FC. There are more than 90 warehouses of the company across the globe which serves the need of not just Amazon but also for anyone else who wants to sell their products on Amazon site. The sellers are crucial to Amazons success as they supply about 40 percent of the items sold on Amazon every year. Amazon runs a program called 'Fulfillment by Amazon' where the retailer lets seller list their products on its website. In many cases sellers can outsource shipping for their items as well. Fulfillment centers shelve Amazons inventory as well as other sellers inventory. Amazon has in fact opened doors for many sellers who would be worried about competing with Amazon. BY providing them access to its infrastructure, Amazon has transformed the business methodologies.
In a similar manner Amazon has opened up its digital infrastructure to anyone who do not have extra money to waste on backend support. Such start-up companies can pay to Amazon to manage ...
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