By Nick McKinney, Manager Analytics, OC Reilly Inc.
(Sept. 26, 2017)—Commerce sure has changed from the days when our parents and grandparents leafed through the Sears catalog to find merchandise. Today, you can pull a phone from your pocket and within 24 hours have virtually any product delivered to your door – all the while Sears teeters on the sharp edge of bankruptcy.
The “Amazon Effect” has radicalized the way consumers shop and spend. But we can never forget the people and hardware and transportation systems behind the scenes that make or break the success of those new purchases.
The Amazon Effect “is defined as the impact the digital marketplace has on the traditional business model in retail. But for supply chain professionals, it is so much more…in supply chain operations, the Amazon Effect is causing a revolution of epic proportions across the globe,” cites a May 30, 2017, blog published in Supply Chain Management Review magazine.
“In order to execute fast deliveries, distribution centers have to operate on a continuous fulfillment schedule,” the story continues. “Orders are no longer processed in batches at the end of the day. They are processed instantaneously and sent to pick in the warehouse immediately…purchase orders will become more and more ‘blanket orders’ with fast requisition release capability…transportation centers are likely to see smaller, but more frequent, shipments and demands for faster deliveries.”
“It’s a wake-up call for supply chain professionals to design new and improved processes and think creatively about the future,” the blog concludes.
Health care supply chain works differently than retail sales, but the expectations and demands for faster, easier, less costly fulfillment practices will be part of this world soon enough. Experienced supply chain experts can provide the necessary insight and guidance to meet those steadily increasing demands.
The “Amazon Effect” is far from over.
Copyright 2017 OC Reilly Inc.