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How Amazon Is Changing Supply Chain in regular Amazon warehouses. It may come as a Management surprise to you that nearly 82 percent of Amazon's Amazon builds reputation through bold sales comprise of third-party sellers. That strategies and technology amounted to $22.9 billion in 2016. Amazon's Amazon.com has changed the face of retail one-hour or same day shipping is possible due to through its use of bold supply chain strategies and its dependence on its own logistics. Just because its deployment of innovative technologies. In this it sells third-party products does not mean it article, we explore some of the ways that Amazon uses third-party logistics to deliver the products. has shaped its supply chain, leaving competitors Amazon understands too well that depending scrambling to catch up. on third-party logistics would just lengthen Rapid Growth: In 2004, ten years after the product delivery time. That's why Amazon Amazon was founded, its annual revenue was delivery or one-hour delivery options. just under $7 billion. According to Statista, in 2016, however, revenue reached almost $136 Delivery Options To Customers: Amazon billion. In fact, Amazon is the fastest company has different warehouses for different kinds of to reach $100 billion in sales revenue, taking products and customer preferences for delivery only 20 years. From its inception, Amazon has options. Prime customers delivery, one-day been growing approximately 20 percent per year. delivery, first dass delivery, and free super saver Currently, it enjoys 6.4 percent of gross global delivery are some of the common delivery e-commerce sales. One of the major secrets options available to Amazon customers. Amazon's behind Amazon's massive transformation from a continuous efforts to make product delivery in simple online bookseller to the most dominant the fastest possible time make it a logistics giant and formidable force in the retail industry is and not just the leader in the retail industry. its innovative and highly efficient supply chain. Push/Pull Strategy for Supply Chain Amazon's continuous efforts to deliver products Success: Amazon's own warehouses are to the customers in the quickest possible time are strategically placed, moving closer and closer causing intense pressure other giant players in the to main metropolitan areas and city centers. retail industry across the globe and thus changing. As a result, it uses a pure push strategy for the the way supply chain management works. products it stores in its warehouses. On the other Amazing Supply Chain Management hand, it uses a pure pull strategy when it sells the Practices: Amazon enjoys a cult following. It products from the third party sellers. is a favorite choice for customers due to one Classes and Zones: Amazon boasts over crucial reason: quick and efficient supply chain 70 fulfillment centers in the U.S. and greater management. The combination of sophisticated than 90,000 full-time employees. To make information technology, an extensive network of good on increasingly fast delivery promises, the warehouses, multi-tier inventory management company has positioned many new warehouses and excellent transportation makes Amazon's in proximity to local urban markets. (Wal-Mart's supply chain the most efficient among all the online strategy in China now similarly makes use major companies in the world. of a closer to the customer fulfillment model, Outsourcing Inventory Management and operating a network of mini-warehouses.) The Insourcing Logistics: Amazon's supply chain location, size, and the number of warehouses heavily depends on outsourcing of its inventory are important factors in Amazon's supply chain management. Especially the products that are not success. Its warehouses are divided into five frequently purchased or ordered are not stored storage areas. Its library prime storage stores