Logistics

Management in
Amazon
Udita Laghate (K022), Aksh Shah (I044),
Yashraj Vaidya (K064), Megha Supriya
(J230), Shree Agarwal (J203)
Table of Contents
OUR DISCUSSION POINTS

Introduction
A Brief Overview
Amazons Supply Chain
Amazons Relationship With its 3PL Providers
Benefits and Challenges of Using 3PL
Best Practices for Amazon in Managing Its 3PL Relationships
Conclusion
 Introduction

Amazon has emerged as an MNC From e-commerce to streaming, there is

behemoth in modern times no area of commerce left untouched by
the influence of Amazon

Third party logisticsis a system whereby, Amazon makes use of 3PL providers for
a third-party organization provides their own purposes, but also provide 3PL
logistics services services of their own
A Brief Overview
HISTORY OF 3PL INDUSTRY

CURRENT STATE OF 3PL INDUSTRY

TYPES OF 3PL PROVIDERS

Transportation based,
Warehouse/distribution based,
Forwarder based,
Financial based,
Information based
A Brief Overview
SERVICES OFFERED BY 3PL INDUSTRY
Warehousing and Distribution
Transportation Management
Inventory Management
Reverse Logistics

TRENDS IN 3PL
The evolving Amazon effect
Greener Supply Chains
Last mile delivery as a brand differentiator
Supply Chain Integration
A Brief Overview
AMAZONS ROLE IN 3PL INDUSTRY
Fulfillment by Amazon
Amazon Logistics
3PL services for sellers
Supply Chain Innovation
Last Mile Delivery Focus
Global Reach
Amazons Supply Chain
Amazons Supply Chain
OVERVIEW OF AMAZONS SUPPLY
CHAIN

Supplier Network
Warehousing and Fulfillment Centers
Inventory Management
Distribution Centres
Transportation and Logistics
Technology and Data Analytics
Last-Mile Delivery
Customer Service
Prime Now and Same Day Delivery
Global Expansion
Amazons Supply Chain
ASPECTS THAT ARE OUTSOURCED

Transportation Services
Freight Forwarding
Warehousing and Distribution
Returns Processing
Value-Added Services
Cross-Docking Services
Specialized Handling
Overflow and Peak Season Support
Global Expansion Support
Amazons Supply Chain
CRITERIA FOR SELECTING 3PL PROVIDERS

Operational Alignment
Scalability
Global Reach and Compliance
Technology Integration and Innovation
Cost Efficiency and Competitive Pricing
Quality Control and Customer Satisfaction
Warehouse Organization and Zone Management
Data Transparency and Analytics
Environmental Sustainability
Communication and Collaboration
Customer Service Excellence
Amazons Supply Chain
EVALUATION PROCESS FOR
SELECTING PROVIDER

Request for Proposal (RFP)

Operational and Technological Capability
Assessment
Scalability and Flexibility
Global Reach and Compliance
Cost Analysis
Quality Control and Performance Metrics
Technology Integration and Data Sharing
Sustainability Practices
Risk Management and Contingency Planning
Contractual Agreements and Service Level
Agreements (SLAs)
Amazons Supply Chain
TERMS AND CONDITIONS OF
CONTRACTS

Service Levels
Pricing
Performance Metrics
Inventory Management
Technology Integration
Insurance and Liability
Dispute Resolution
Termination and Transition
Amazon’s Relationship
With 3PL Providers
Amazon’s Relationship
With 3PL Providers
HOW AMAZON MANAGES ITS RELATIONSHIPS

Amazon manages its relationships with 3PL

providers through a comprehensive approach
that encompasses strategic partnerships,
performance management, and continuous
improvement.
Amazon’s Relationship
With 3PL Providers
HOW AMAZON MANAGES ITS RELATIONSHIPS

Strategic Partnerships:
1-Vendor Selection and Onboarding
2-Collaboration and Communication
3-Technology Integration
Amazon’s Relationship
With 3PL Providers
HOW AMAZON MANAGES ITS RELATIONSHIPS

Performance Management:
1-Key Performance Indicators (KPIs)
2-Regular Performance Reviews
3-Incentive Programs
Amazon’s Relationship
With 3PL Providers
HOW AMAZON MANAGES ITS RELATIONSHIPS

Continuous Improvement:
1-Process Automation
2-Data-Driven Insights
3-Continuous Training and Development
 Dispute resolution process for
Amazon's relationships with
3PL providers
Amazon's dispute resolution process for its relationships with 3PL
providers is designed to ensure that disputes are resolved fairly and
efficiently
Dispute resolution process for
Amazon's relationships with
3PL providers
1. Pre-Dispute Resolution:
Communication and Negotiation
Case Management
2. Formal Dispute Resolution:
Dispute Notice
Investigation
Dispute Resolution Meeting
Final Decision
3. Escalation
4. Legal Action
Benefits and Challenges
Benefits and Challenges
BENEFITS

Cost Efficiency
Focus on Core Competencies
Scalability
Expertise and Resources
Faster Shipping and Fulfillment
Reduced Shipping Errors
Benefits and Challenges
CHALLENGES

Loss of Control
Communication Issues
Integration Challenges
Cost Structure
Dependency Risk
Quality Control
Best Practices for
Amazon to Manage Its
3PL Relationships
Best Practices
CLEAR COMMUNICATION AND EXPECTATIONS

Establish clear and documented expectations for each 3PL

relationship.

Regularly communicate with 3PL partners to ensure they

are aware of Amazon’s expectations.

Be open and transparent with 3PL partners about any

changes to business processes or expectations.
Best Practices
COLLABORATIVE PLANNING AND FORECASTING

Establish clear and documented expectations for each 3PL

relationship.

Regularly communicate with 3PL partners to ensure they are

aware of Amazon’s expectations.

Be open and transparent with 3PL partners about any changes

to business processes or expectations.
Best Practices
TRANSPARENT PERFORMANCE MANAGEMENT

Establish clear and documented expectations for each 3PL

relationship.

Regularly communicate with 3PL partners to ensure they are

aware of Amazon’s expectations.

Be open and transparent with 3PL partners about any

changes to business processes or expectations.
Best Practices
CONTINUOUS IMPROVEMENT

Foster a culture of continuous improvement by providing funding

for training and development

Share best practices in warehouse management, transportation,

and customer service to enhance 3PL partner capabilities

Collaboratively develop innovative solutions to supply chain

challenges, exploring new technologies and processes
Conclusion
The 3PL industry has evolved significantly due to the increasing
complexities of supply chain management.

Amazon has played a major role in shaping the 3PL industry in the
e-commerce era.

Amazon carefully selects and manages its 3PL providers,

emphasizing collaboration and transparency.

3PLs provide vital capabilities for scaling logistics operations and

ensuring reliability for Amazon.
Conclusion
Using 3PLs poses risks around dependency, loss of control, and
integration challenges.

Following best practices in governance, communication, and continuous

improvement can lead to successful 3PL partnerships.

The 3PL industry is poised for further expansion and specialization as e-

commerce volumes continue to grow.

Amazon will likely remain at the forefront of supply chain innovation and
customer-centric standards.

Amazon can maintain its competitive edge and customer satisfaction by

fostering innovation internally and with its 3PL partners.