Presented to: Dr.

Adel Sakr
 Amazon Overview
Amazon.com is American based multinational electronic commerce company.
Amazon was founded in 1994 by Jeff Bezos. Launched online in 1995 It started as
an. On line bookstore. With 25 million titles it became the earth's biggest
bookstore.
Amazon operates more than 175 fulfillment centers worldwide, with more than
150 million square feet of space, making it a leader in the warehouse industry.
This includes centers in the United States and elsewhere, with the majority being
in North America and Europe.
It is one of the largest e-commerce firms, with a market capitalization of more
than $20 billion.
Amazon.com operates 7 websites that support their business operation globally
and offers 20 million items for sale
Amazon offers two fulfillment options to sellers – FBA and FBM.

FBA (Fulfillment by Amazon): Amazon will

take care of all logistics and customer
support. Third-party sellers will just have
to send bulk products to Amazon’s
fulfillment centers for them to pick, pack,
and ship.

FBM (Fulfilment by Merchant) : Third-

party sellers will be in charge of listing
their products on Amazon and handling all
of the storage and fulfillment aspects of
the process on their own.
Amazon Fulfillment Centers - 5 Steps

Receiving Products: Products are either taken off

trailers by forklift or manually built into pallets. The
separation of freight occurs between those that are
coming from an Amazon facility and those from
third-party vendors using FBA.

Storing of Items: Amazon has yellow tiered bins

with items – all tracked by computers.

Picking orders: When you click the “buy button”,

and your order comes in, a robot will bring pods full
of items to Amazon associates working at pick
stations. These pickers will read the screen,
retrieve the item and place it into a yellow plastic
box.
Amazon Fulfillment Centers
Quality Assurance: For robots and
humans to work cohesively together,
there’s a great deal of quality assurance
required. There’s a need to make sure
that the item’s physical location
matches what’s in the computer, and
that the robots function correctly.

Packaging Orders: Shipments are both

organized and scanned before being
sent to the pack station. There, the
system will recommend box sizes to
Amazon associates and measure out the
amount of tape required.
How Amazon Processes Orders - Step 1

Amazon places the order in Pending

status. The quantity available is counted
from the total quantity in Manage
Inventory. If there was a quantity of one
at the time the order was placed, the
listing will be removed from the Amazon
offer page and appear in Manage
Inventory with a quantity of zero while
the order is being processed.

Amazon holds all orders for 30 minutes,

which gives seller an opportunity to
cancel orders. Seller-canceled orders will
appear in Manage Orders as canceled.
How Amazon Processes Orders - Step 2
Amazon verifies the order along with validating the
customer's payment method and order details once
the order is received.

At this stage, there are three different status types

in Manage Orders:

1. Unshipped: Payment verification is successful -

order processing.
2. Pending: Payment verification is unsuccessful
3. Canceled: Payment authorization does not succeed
or in cases of fraud. Customer will view the order as
canceled in Manage Orders.
How Amazon Processes Orders - Step 3
When payment is verified on an order, Amazon does the following:

1. Changes the status to Unshipped.

2. Sends an order confirmation to the customer with the estimated delivery date.
3. Sends an order notification to the seller.
How Amazon Processes Orders - Step 4
Once an order is in Unshipped status, the seller must either fulfill or cancel the order.

1. Get the delivery address (The Order Details page, Orders report and Unshipped
Orders report).
2. Seller should use the delivery address and the requested shipping method.
3. Once the order is shipped, the seller must confirm the order by clicking (confirm
shipment) on the manage orders pager or upload a Shipping Confirmation file for
multiple orders.
How its logistics system is efficient?
The combination of sophisticated information
technology, an extensive network of
warehouses, multi-tier inventory management,
and excellent transportation makes Amazon’s
supply chain the most efficient among all the
major companies in the world. Those
efficiencies have made the current shop-from-
home world possible.
Outsourcing of inventory Management
Insourcing logistics
Delivery Options for Customers
Push-Pull Strategy for Supply Chain Success
Automation
How to inspire others to imitate?

Deliver So Quickly:
Same-day delivery.
Innovative technology, powered by

Amazon Robotics.
Ease of management.
Customer service.
What is the technology role in Amazon’s logistics system?

Amazon uses technology is so many

details in the process with robotic
solutions and countless automation,
which makes the entire process so
efficient, cutting off staff and
warehouse costs, speeding up delivery
time and investing money in other
logistics and supply chain needs, they
have 11 online marketplaces which
attracts sellers to grow their
businesses with Amazon regardless of
where physically they exist which
exposes their products worldwide
through the immense use of
technology.
What is the Amazon strategy that let
them open a new branch in Egypt?
The strategy is to capitalize on their work
with wealthy retailers, sellers and brands
as Egypt has a very strong industrial sector
and rich business to reach more customers
and give the opportunity to local sellers to
expand their sales nationwide, also giving a
great opportunity to local Egyptian brands
and companies as Amazon’s culture is
about giving customers more choices
that’s why it supports entrepreneurs and
SMEs.
Thank You