Amazon’s Prime Day Impact on the Supply Chain

Amazon Prime Day

Amazon's Prime Day 2018 kicks off today at 3:00 PM EST and is one of the biggest e-commerce days of the year, with sales growing over 60 percent year-over-year since 2016.

Prime Day features deep discounts for Amazon Prime members and will generate sales to rival those of the holiday season, even during one of the year’s lowest sales periods.

Retailers supplying the 560M+ items available every day on Amazon in the USA are upping their game with the help of technology to meet expectations for quick deliveries and excellent service by optimizing their shipments and improving visibility.

Dan Clark, Founder and President of Kuebix, weighs in on the event, “Amazon Prime Day is like Black Friday, only in July, and demonstrates how consumers’ adoption of e-commerce shopping is growing at a pace that far exceeds expectations.”

“E-tailers shipping into Amazon fulfillment distribution centers (FDCs) are focusing on improving efficiencies within their supply chains and streamlining operations to keep pace with the increased volume. By leveraging the power of technology, retailers are lowering transportation costs, finding needed capacity, and gaining visibility into operations to ensure customer service expectations are met.”

Prime Day comes at a time of year that has been traditionally slow for the supply chain industry. There aren’t any major holidays, and back-to-school hasn’t quite started.

However, the popularity of the event coupled with the capacity crisis and driver shortage is causing roadblocks for some retailers who haven’t already optimized their supply chains.

To keep up with the heightened order volume, retailers must streamline internal processes, ship products more efficiently and maintain a heightened level of visibility to order line items.

Retailers are turning to technology to improve their internal processes through order integration, rate-comparison and freight pay and audit features. Global logistics communities are uniting carriers and shippers to find optimal routes to share assets and fill empty miles. Powerful optimization tools are consolidating loads and planning the most efficient routes to cut down on transit time as well as costs.

Read: Improving the Customer Experience in the Age of Ecommerce

All these processes are being made possible by technology and are helping to combat the capacity crunch by making shipping more efficient and utilizing assets to their fullest.

“Amazon has set the bar high in terms of order visibility. Companies are now taking advantage of technology to gain visibility into their supply chains, resulting in superior customer service and more efficient operations. The adoption of technology like tracking devices, onboard computers, and cloud-based portals means that retailers can collaborate with carriers to improve performance,” continues Dan Clark.

“Carriers can provide an updated status of their delivery so that retailers know where goods are at all times and when to expect their arrival. If a delay is going to happen, the customer can be alerted, which improves satisfaction.”

The industry is braced for “Christmas in July” as the countdown to Prime Day draws to a close. The deep discounts on more than one million items, both Amazon-branded products as well as items from third-party sellers, are guaranteed to have a large impact on the supply chain this year.

In order to keep up with increased order volume and inventory turns, shippers are turning to technology to improve their processes and speed up delivery.

Related Article: Retailers Versus The Amazon Effect

About Kuebix
Founded by a logistics industry innovator, Kuebix offers a transportation management system (TMS) with Freight Intelligence that enables companies to capitalize on supply chain opportunities through visibility, control and the use of predictive analytics. Kuebix is democratizing the rating, booking, and tracking of freight with its free TMS, Kuebix Free Shipper, which can be ready to use in minutes. Shippers looking for financial management, advanced analytics, and other premium features can upgrade to Kuebix Business Pro and Kuebix Enterprise and then seamlessly add Premier Applications and Integrations as needed. Kuebix also offers unique Managed Service Programs to businesses looking to partially or fully outsource transportation management. For more information visit: www.kuebix.com.

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