A LOOK INTO AMAZON’S SUPPLY CHAIN OPTIMIZATION

Amazon’s massive and consistent growth over its short 25-year history is firmly rooted in Supply Chain Optimization. Having morphed from an inventory-heavy bookseller, Amazon has developed a supply chain that brings parity to the consumer, while simultaneously reducing the burden of Supply Chain Management for its suppliers.

You might think of Amazon suppliers (third-party sellers for Amazon) being small businesses (SMBs), and as the Pareto Principle states, that’s true for 80% of them, likely even higher. But a little-known fact of the Amazon Marketplace is that some of the world’s largest manufacturers of goods, from B2C to B2B, are beginning to outsource a great deal of their supply chain directly to Amazon.

Neurored APP conceptualization to automatically monitor and manage your inventory levels, issue reorders automatically, allowing you to maximize your margins and reinvest in your bigger future with Amazon.

Neurored App conceptualization to automatically monitor and manage your inventory levels, issue reorders automatically, allowing you to maximize your margins and reinvest in your bigger future with Amazon.

HOW DOES THIS WORK?

Let’s take an example.  Say Pika-Laptop manufactures their electronics in Asia, and their customer base is largely located in the United States which is a mix of retail consumers and business consumers. Pika-Laptop is shipping hundreds of 20′ containers from Asia to America every year. These containers must be transferred from factories to ports, to vessels, to trucks or trains, to distribution centers. These distribution centers require large buildings, advanced technologies, and of course, staff. But this is only half of the supply chain for Pika-Laptop because orders need to be received, the product needs to be picked, shipments need to be released and delivered. These activities are very costly, and heavily dependent on third-party logistics (3PLs).

Amazon saw this opportunity early, but also appreciated the complexity of logistics. So they tackled the problem from last mile delivery first and gradually worked their way back towards product sourcing. Today, suppliers (third-party sellers for Amazon) have the luxury of Amazon’s Seller Central technologies, which empower suppliers to plug their supply chain operations software directly into the Amazon Eco-system.

Take for example how customers of Neurored, a Global Supply Chain & Transportation Management app built native on the Force.com Cloud Platform by Salesforce.com, leverage Neurored’s Amazon Fulfillment Integration. Suppliers (third-party sellers for Amazon) create shipments to Amazon Fulfillment Centers digitally.  This process enables suppliers to choose their own shipping partner, or leverage Amazon’s transport partners network directly. Suppliers receive automatic notifications of inventory receipts, as well as orders, fulfillment, damaged goods, return claims, you name it, all electronically communicated back into their Neurored Supply Chain & Transportation Management App.

Amazon even released Artificial Intelligence capabilities, which literally applies predictive modeling as it makes next-best-action recommendations for suppliers to take next in order to optimize their inventory levels. Here we are in 2018, and Amazon has already created a seamless supply chain solution for even the largest suppliers, on a global scale. Given a little time, they will continue to reach all the way back to the original manufacturing sources.

Imagine a seamless supply chain where your app will automatically monitor and manage your inventory levels, issue reorders automatically, allowing you to maximize your margins and reinvest in your bigger future…Stop imagining because that future is already here!

Contact us for a personalized live demo of our Amazon Solution for Global Supply Chain and Transportation management here.

In recent years, technologies such as Blockchain are revolutionizing our society at an exponential speed. In just 10 years, Blockchain went from being essentially what supports cryptocurrency transactions to technology with diverse applications for countless businesses. Naturally, the Supply chain and Logistics industries have developed use-cases solving intricate issues that companies have been facing.

 
Neurored is the leader in delivering real production environments of Blockchain technologies for Global Trade, leveraging the unique combination of the leading cloud platform – Force.com and the leading permitted blockchain technology – Hyperledger Fabric. Our solutions (described below) enable global trading partners to operate with a substantial level of trust, while simultaneously avoiding commercial fraud exposure that is unavoidable in equivalent paper-based processes or unsecured digitized processes.

COMMODITIES TOKENIZATION (DIGITAL ASSETS)

By taking advantage of Hyperledger Fabric, Neurored’s platform allows tokenizing commodities by leveraging the security that Blockchain provides. Indeed, trading companies can incorporate key documents to Neurored’s secure Hyperledger, saving them both a great amount of time and money by exchanging a trustworthy proof of ownership.

For instance, one application involves the tokenization of Negotiable Warehouse Receipts (WR) issued by authorized warehouses. This process, therefore, accelerates the trading of commodities stored in a warehouse, without requiring any movement of the assets themselves. Digitization of WR encourages trading partners to make secure transactions (WR endorsements) of commodities stored in warehouses and other storage facilities such as silos. Trust between trading partners is based on the digital process and the technology itself, which makes actual commercial fraud impossible. In a similar way, Bill of Ladings (BOL) issued by Break Bulk Shipping Lines can be tokenized to accelerate trade of commodities in transit on vessels.

SECURE MARKETPLACES

Neurored also develops custom marketplaces for its customers in which sellers and buyers can trade commodities through the exchange of these tokens. Our Blockchain ledger of published prices (sale and purchase prices), availabilities, quality parameters, schedules, and orders, encourages trading partners of commodities marketplaces to trade in a safer way.

In addition, our marketplaces seamlessly enable demand and supply of products to meet by agreeing on terms such as price, availability, and quality. By requesting the contribution of a trustworthy third party (e.g. inspection service, warehouse management service etc.) to certify the agreed-upon conditions, the exchange of goods can be carried out in a reliable and unbiased manner.

SECURE FACTORING

Neurored has also built a Blockchain ledger of trade documents (Order, Invoice, BOL…) and related approval processes which enables traders to provide financial institutions more trust over their commercial operations in order to obtain better discount rates for their factoring operations.

At Neurored we have an indefatigable desire to innovate and bring organizations involved in Global Trade the tools allowing them to do business in a highly cost-efficient and sustainable way, as well as gain a competitive advantage by implementing state of the art technologies. Blending blockchain into our cloud platform, thereby enabling easy navigation between the physical and digital dimensions of a business, is just one of the innovations we have conceived.

Get a live demo by contacting us here.

 

 
 

The complexity of Supply Chain has been resulting in continuous upstream and downstream problems historically.

In a research published by Emerald Group, and recently quoted by Mr. Tim Charlton – Senior Management Consultant at XAct Solutions – we find an interesting approach to the smartification key aspects of Supply Chain:

  1. Instrumented – Information is overwhelmingly being machine-generated, such as by sensors, RFID tags, etc.
  2. Interconnected – The entire supply chain, including business entities, assets, IT systems, products, and other smart objects are all connected.
  3. Intelligent – They make large-scale optimal decisions to optimize performance.
  4. Automated – Much of the process flows are automated by using machines to replace other low-efficiency resources, such as labor.
  5. Integrated – Process integration involving collaboration across supply chain stages, joint decision making, common systems, and information sharing.
  6. Innovative – Development of new value through solutions that meet new requirements, inarticulate needs, or even existing needs in better ways.

“The development of Smart Supply Chains has never been more paramount than now.”

“Academic literature has long advocated the notion that information is a critical component of successful supply chain practices. Given we execute our supply chain activities within a dynamic operating environment of continued uncertainty and disruptions, the development of Smart Supply Chains has never been more paramount than now”, remarks Tim Charlton in his article.

But the questions that you may be making yourself are whether the supply chains are ready to be smartified? will be a standalone process for my company or most likely involve a similar process from vendors and clients? is my organization prepared for such transformation from systems to employees?

Although obviously, you may not have instant answers to all these questions, formulating openly throughout your ecosystem may be a good first step to help the right strategy to emerge. Meanwhile what is unstoppable is the emerging of new pressures for finding the way to the sector’s mantra: cheaper, faster and better, and the way is no other than smartification.

Contact Us to discover how Neurored can help your organization towards Supply Chain Smartification

Sources:

“Are Supply Chains Ready to be Smart?”
Tim Charlton
XAct Solutions

“Smart supply chain management: a review and implications for future research.”
Emeral Group Publishing Limited