7 Pitfalls of Amazon FBA (Fulfillment By Amazon)!

Fulfillment by Amazon or Amazon FBA lets sellers in the Amazon marketplace take advantage of Amazon’s giant logistics operation to ship their orders.

FBA items are eligible for Amazon Prime shipping and Amazon handles your angry customers (which Amazon considers its customers, not yours). Amazon has dozens of warehouses all over the country, and more around the world, so your products may be in your customers’ hands quickly.

If you pull back the Amazon curtain, however, you find the picture isn’t always rosy.

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Customers Do Not Care About Your Problems!

“The system is down.  We can’t ship any customer orders. We’re not sure when the system will be back up again.”  Oh no … Customers do not care about this stuff.

Coming into the Holidays, the busiest time of the year, that is the last thing that I wanted to hear.

I thought about it and said, “The Customer doesn’t care.

From that point forward we pulled together the necessary resources and visibility to get the problem solved quickly.   But the message was clear: The Customer doesn’t care about our internal problems.

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Warehousing: Optimize Storage Locations!

“We just spent several millions of dollars on a new Warehouse Management System for our E-Commerce Online Distribution Centre.  We do not need to spend any more money on our Supply Chain.” That sounded very intriguing to say the least.  At a minimize we needed to optimize storage.

The E-Commerce business anticipated 20-30% year to year growth. I could only interpret, having just joined the company, that all of the steps and planning needed had been taken.  We had to ensure that the Distribution Centre could handle Holiday volumes, especially over the Black Friday/Cyber Monday period.

However imagine my surprise when I went to the Online Distribution Centre.  All I saw was a very large warehouse with nothing but racks and shelving as far as the eye could see.  Employees were pushing carts up and down aisles, across the entire warehouse.  They were trying to find each of the products required to fill a particular customer order. The company had just invested in an expensive Warehouse Management System.

Yet  no time or money had been spent on process optimization, order fulfillment cycle time reduction,  cost reduction, or peak capacity load management.

We were in for a hectic Holiday season, at best!

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Transform Your eCommerce Business with Supply Chain Excellence!

While offering access to global markets, eCommerce has also created a new set of challenges for businesses, particularly when it comes to supply chain management. Consumers expect fast and personalized delivery options, and a well-designed supply chain network can help them meet these expectations and enhance the overall customer experience.

Let’s explore the changing eCommerce landscape, the challenges faced by businesses, and how they can be addressed through intelligent eCommerce supply chain excellence.

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The 5 Point Last Minute Black Friday Supply Chain Checklist!

Black Friday is almost here!  The Last Minute Black Friday Supply Chain checklist is here too!

It marks the tipping point demarcating the less busy, preparation focussed pre-Black Friday period from the frantically busy, execution focussed post-Black Friday period.

Record sales are expected from the online retail channel in particular, as is the case year after year.

For Supply Chain teams this means that time is running out to ensure that all of the planning, preparation, contingencies, resources, systems, processes and goods are in place.  

Here is our Last Minute Black Friday checklist.

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Our 2017 Top 10 List! – Part 2

It’s been a tremendous first year at  supplychaingamechanger.com.  Our goal has always been to share experiences and expertise.  And in the second half of 2017 we had an ever increasing number of articles contributed by industry leaders all of whom have been very generous in sharing their intellect and insights.  This is our second 2017 Top 10 List.

Our readers and contributors come from all over the world.  They include individuals new to Supply Chain as well as Industry leaders and everyone in between.   And they work in many different industries and vocations.   But they all have a common interest in Supply Chain, Operations, Business, Leadership, Change Management, Human Resources, Transformation,  and Technology.

Most importantly they all have an interest in learning and sharing.

As we end this first year we wanted to publish our 2nd Top 10 List.  Our first Top 10 List covered the Top blog posts from the first half of 2017 so our 2nd Top 10 List will cover the second half of 2017.

Thank you for your tremendous, ongoing support.  

So here is our 2nd Top 10 List of 2017…

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Get Ready for Holiday Now: Make It Boring (From A Supply Chain Perspective)!

The Holiday season finished recently.  And the next Holiday season may seem far away.  But in the area of E-Commerce Fulfillment it will be here before you know it.  Now is the time to begin implementing the improvements and strategies you need to make this coming Holiday season more successful than last year.

Having gone through the ups and downs and stresses of several Retail Holiday seasons myself, one January I gave this direction to my team.  For the upcoming Holiday our theme was that we were going to have a BORING Holiday season … from a Supply Chain perspective.

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Innovations in Offline Retail! (Infographic)

There is no escaping the fact that offline retail has changed over the last number of years. The predominant reason for this is advancement in technology but specifically with the emergence of the Internet and associated devices which allow consumers to literally shop from the comfort of their couch.

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Warehouse Fulfillment – Move Material to the People, Not Vice Versa!

“Here Come The Bots!”

Wow!  This was the headline caption on the presentation I was about to see.  I had just joined the company.  I had just spent the last few years in Retail.  I had done a lot of research on how to improve efficiencies and productivity in Online/E-Commerce Fulfillment Distribution Centres.  And I had lived through the agonizing process and resource challenges of fulfilling E-Commerce orders during the Holiday season, which is far and away the busiest time of the year in Retail.

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Competing against Amazon? You Need A Blue Ocean Strategy!

Amazon is far and away the leader in the E-C0mmerce space.  Their growth continues at an exceptional pace.  And they continue to expand their products, services, and capabilities.  In short they continue to press their advantage and make it difficult for anyone else to compete with them.  You need a Blue Ocean strategy!

But if you are in the E-Commerce space that is your reality.  Amazon is the biggest shark in the room.  So how do you compete in the face of such an overwhelming adversary?

One technique is to consider creating your own Blue Ocean Strategy to create competitive advantage!  If you can define dramatically different space in which to do business you may be able to keep this shark, and others, at bay (at least for a period of time).

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Peeling Back The Orange Juice Supply Chain!

Orange juice is the most popular fruit juice in the world, and one of the most popular of all drinks globally.  Depending on the country you live in you may consume on average several gallons of Orange juice annually.

When you go into a grocery store or supermarket you are likely to see a large pile of oranges.  And when you walk down the aisle to where the juices are you will see a large variety of brands and types of juice … with lots of pulp, some pulp, no pulp, low acid, with calcium and vitamin D, and on and on.

While Oranges and juice are common and usually easily found it is still curious as to what the Supply Chain is.  What exactly is the Orange juice Supply Chain and how does it work?

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Crowdfunding Fulfillment Solutions: Things You Should Know About

Crowdfunding has given entrepreneurs and inventors greater access to startup capital. You might not be able to get seed money or Series A funding from a venture capital firm for your idea, but backers on Kickstarter or Indiegogo could give you just the leg up that you need.

Crowdfunding marketing is a strategy to raise funds for a project by asking a large number of people to donate money, usually in small amounts to fulfill the financial goals of the project. Crowdfunding, on the other hand, gives you a quick place to showcase and share your pitch with a bigger audience.

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The Omni-channel Approach to Customer Experience!

Unchaining Change Leadership

In the last decade, the growing adoption of ecommerce has been swift–and ruthless. Huge retail market players like Best Buy and Toys R’ Us are shutting down huge chunks of their physical locations due to plummeting revenue and poor customer experience.

Not only is this a result of not embracing ecommerce early in its wave, they are also now competing with ecommerce giants like Amazon and Alibaba who sell the same or competing products online.

Traffic drought in physical stores could be attributed to the rising number of purchases made over the internet for certain customer and product segments. For some, the revenue drop is significant. And yet another part of the challenge big box retailers face as publicly traded companies is that they have to answer to their investors–and with ecommerce delivering superior results, the patience afforded to big box retailers is just not as generous.

So, where does the success of ecommerce lie?

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Turn your Brick And Mortar Stores into E-Commerce Distribution Hubs!

Retailers with Brick and Mortar stores continue to be under tremendous pressure.  Competition is intense in the fast growing Omnichannel E-Commerce world.  Every week there seems to be news about how one Retailer or another is closing more of their stores when they could be using them as Distribution hubs.

And very few Retailers with Brick And Mortar stores have been able to make a profit in E-Commerce.  Competitors who only sell online without physical stores appear to have an advantage with lower overhead costs.

So how can Brick And Mortar Retailers turn their stores into a competitive advantage plus a source of greater profitability?

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Cutting out the Middleman: The Growth of Direct to Consumer!

As supply chains evolve and grow, products are often passed between dozens of hands at factories, shipping vehicles and pallets, distributor warehouses, retail warehouses, shop floors, and delivery fleets. They often travel thousands of miles to go direct to consumer.

And they go through multiple intermediaries, something which has an impact not only on the profit margins, but also on the brand’s ability to connect and communicate with their customer.

With revenue growth remaining a challenge, almost half (48 per cent) of manufacturers are racing to build Direct to Consumer (DTC) channels, with almost all of them (87 per cent) seeing these channels as relevant to their products and consumers.

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