3 Trends learned from Amazon’s Supply Chain

3 Trends learned from Amazon’s Supply Chain

Throughout the new year, we can expect to see Amazon continue to push into new and existing markets which will define trends in the supply chain. While it can seem impossible to stay competitive with Amazon, it is a good idea to look for ways to improve operations by applying these trends learned from the e-commerce giant.

Technology Helps to Evolve Procurement Practices.

Sales are boosted by better procurement practices which will continue to change throughout the year. Currently, procurement drives up to 65 percent of sales which has resulted in us looking for more innovative ways to produce greater products. Procurement professionals are becoming more hands-on by focusing on being physically involved in their market research and reviewing market trends versus just signing purchase orders.

Robotics Will Become More Versatile.

Since Amazon’s purchase of Kiva robots, more companies are turning to robotics to fill the divide between the low number of customer representatives and maintaining operations. Robots are becoming more versatile and accessible to companies and are gaining new movements and roles like being able to pick items from shelves in warehouses. Robots will work to reduce the costs of deployment and maintenance, while also increasing the speed of operation.

More Businesses Will Create E-Commerce Platforms.

Amazon made it hard to compete with their supply chain when they gave everyone the opportunity to sell their goods online. The result has meant that more companies are looking to launch e-commerce platforms without having to give shares of their profits to Amazon. This has seen companies like Walmart redesign their current platforms to make the online shopping experience easier for consumers, while also including convenient options like shipping straight to your door or your nearest store. Ultimately, more businesses are seeking out partnerships with big companies to stay competitive with Amazon.

Unfortunately, it won’t be easy to compete with the power of Amazon’s supply chain, but the lesson is to find opportunity in the new trends and embrace them which will help make your operations more efficient.

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