Logistics May Be A Good Card For Amazon.

China's logistics cost accounts for nearly 20% of GDP, far higher than that of Europe and the United States. How does the high logistics cost consist of?

In the logistics cost of the United States, the proportion of pportation cost in GDP is 5.7%, the proportion of holding cost of storage and inventory is 3.43%, and the cost of management is 0.35%.

The difference between China's pportation cost and inventory cost in GPD is not very large compared with that in the United States, which is 9.43% and 6.2% respectively, but it is interesting that China's management cost is about 2.26% of GDP, far higher than that of the United States, which is about 8 times worse. This shows that the main reason for the high and low efficiency of logistics in China lies in management ability, which is the advantage of Amazon.

Xue Xiaolin said.

For example, in terms of cross-border electricity providers, under normal circumstances, domestic logistics enterprises will choose to cooperate with the third party and lease warehouses overseas. Then, they will spend more time in warehousing and warehousing. Moreover, due to many operational links, the logistics enterprises are less controllable, so the probability of goods being lost or damaged is relatively high.

Amazon's self built operation network is firmly controlled in the hands of self inspection, for example, intelligent system will automatically choose the nearest warehouse from the airport or port to give priority to delivery. In the whole process of logistics, the operation of intermediate links can be reduced as much as possible, while ensuring the safety of goods, it can also save time and cost.

"Like imported red wine, it has certain requirements for pport process and storage process. Cross border pportation logistics chain is longer and more difficult."

Xue Xiaolin used red wine as an example to explain the benefits of a self built network. Amazon uses a self built logistics system to pport red wine, reducing intermediate links, reducing damage rates and reducing the rate of damage.

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The Amazon China operation center, which is located in the Wuqing Development Zone of Tianjin, clearly shows the picking areas and distribution areas which are strictly divided, as well as the personnel and machine walking routes separated by various lines of color, such as green, blue and yellow, so as to help the machine automatically identify the route.

In order to deal with the "offshore outsourcing" commodities, the Tianjin operation center has specially carved out two basketball court size spaces.

Apart from efficiency, the balance between cost and efficiency is also a bottleneck for most domestic electricity suppliers.

In addition, Amazon forecasts the shipping space in advance through the accurate forecast of the peak season and the off-season demand. The main lines in Europe, the United States and Japan carry out the priority pportation through the Charter cabin, not only improving efficiency, but also avoiding the waste of shipping space and reducing unnecessary cost.

"From these examples, we can see that Amazon is not optimizing one side and sacrificing the other side. While optimizing quality and customer experience, we can also reduce the cost structure."

Amazon Global Logistics China logistics supply chain and vice president of Engineering Song Liyuan revealed.

IT system is the core advantage of Amazon China operations center.

In the Amazon China operations center, a worker picked up a distance of 18 kilometers, which was time-consuming and error prone. After calculating and optimizing the shortest route, the number dropped to 6 km, which saved 60% more routes than the traditional method.

There are many examples of reducing the probability of error, for example, when the goods are loaded, the random shelves of different types of goods are mixed.

In the general company's warehousing, the common way is to place goods according to category.

And Amazon's display of goods breaks the boundaries between categories, and randomly comes to the shelves.

By labeling the goods, the system can accurately record its location, and the seemingly messy goods are placed orderly in the system.

When the goods are out, the Amazon system will automatically indicate to the workers the number of boxes should be used, and decide where to put them.

This intelligent recommendation is similar to picking the best route and random shelves. Its logic is to reduce workers' operation time and improve efficiency.

From the user order to the shipment of goods, the storeroom can be completed within 30 minutes.

The role.

At the customer level, Amazon has used big data, artificial intelligence, cloud computing and so on to manage warehousing and logistics, and has launched predictive allocation and p regional distribution.

Xue Xiaolin told reporters that Amazon's system can pass the entire market.

The analysis can accurately predict the peak period and make corresponding capacity and capacity readiness, which can also improve the service time.

"If the seller is only distributing the goods in Guangzhou, the customers in Hangzhou can enjoy the next day's service as well as the delivery and payment service.

The promotion of customer experience has brought more than 50% sales growth to businesses.

Xue Xiaolin said.

Precise management also has a more specific performance, for example, all pport and distribution of Amazon will be placed under its strict system supervision.

From truck pportation to store pportation to the last kilometre, all systems inside Amazon can be opened up to monitor the movement of each package.

"If we see a truck in a system that does not stop in a certain area for ten minutes, the system will have internal alerts immediately and understand what problems have occurred.

Take Beijing to Shanghai as an example, we will specify where the driver must go at each node, how much the cost of crossing must be, how much we need to pick up the goods in our warehouse and leave a few minutes, so long as we pass the standard system, there will be a warning alert.

Ma Jindong, vice president of China logistics, Amazon global logistics, told Chinese entrepreneurs.

In China, the market has been frustrated for a long time. This time, Amazon's China, which is determined to speed up the logistics industry, will pull back a city. 2015 black Friday may be a touchstone.