LogFire Blog

Amazon's Supply Chain Miracle


July 15, 2016

Amazon Isn't The Only Cloud Company to Figure Out Fulfillment

In case you’ve missed the retail news, last week was Amazon Prime Day, and according to Amazon, the company enjoyed its largest sales day ever—with totals reaching $525 million for the day.

The feat is astounding – so astounding that Amazon is now the fifth most valuable company on Wall Street.

What’s a brick & mortar retailer to do in the face of this resounding success? Amazon dominates the online retail market. Big companies like Target, Old Navy, and Wal-Mart may have hosted their own sales for “Black Friday July” but no retailers come close to the scale of Amazon’s operations. Amazon dominated retail news and consumer pockets.

The fact is Amazon – a cloud company – has managed to solve the challenges of ecommerce and digital fulfillment better than any other retailer in existence. Key to this success has been their willingness to hammer away at solving logistics and inventory management. Their focus seems to be paying off for them.

But just because Amazon has had a head start on a technological solution, doesn’t mean other retailers can’t compete. Traditional big box retailers are beginning to pivot and they are invest in solving logistics issues for the digital era. Target, for example is spending BILLIONS of dollars in order to compete.

While a lot of big box retailers are valuable companies that can afford all sorts of solutions, what value is there in reinventing the wheel?

Any retailer that wants to lift their fulfillment game can do so in a matter of weeks. This is the value of the SaaS approach. Why spend 18 months and hundreds of millions of dollars to build and maintain a proprietary solution when you can purchase a subscription at good value and worry about your core business?

Immediate Benefits Provided By SaaS

Instead of worrying about how to build software that modernizes your warehouse management, a SaaS solution instantly offers users market responsiveness, scalability, and functional requirements. In fact, most warehouse functionality is already live and online -- ready to go, including:

• Inbound Receiving and Putaway

• Enterprise Inventory Management

• Outbound Allocation and Store Receiving

• Reporting and Analysis

• Workforce Management

And with multiple integrations established for Enterprise Resource Planning (ERP) tools or Point of Sale tools, SaaS warehouse management systems are the best solution for retailers who understand the importance of fulfilling omnichannel sales.

Why?

Because above all else, what a SaaS fulfillment solution offers is 100% real-time inventory visibility across the supply chain – from the source to the store shelf. Every parcel, pallet and piece is accounted for. No more wondering where an item is. With SaaS warehouse management systems a retailer knows, and can deliver.

Amazon figured this out years ago and spent the past few years perfecting it. They are now many years ahead of their competitors in terms of capabilities and operational know how.

That is, if a competitor decided they want to build their own version

But why not go with a cloud-based system that’s already established and in place? Especially if all it needs is turning on.

Isn't that the smartest move? Isn't that that fastest way to get fulfillment online?

For more information on the power of SaaS and how LogFire can help your retail business, our white paper on The New Fulfillment Economy, explores the topic in greater detail.

-Diego Pantoja Navajas