Do you know who’s the world’s largest online retailer ? Amazon (Amazon.com)
Most internet users worldwide have come across or seen the website retailer Amazon,’ which sells a wide range of products via on line. At the beginning, Amazon only sold books, but over time, Amazon has expanded their range of products to include mp3 players, televisions, glasses, cameras, shoes, gadgets, watches, accessories and much more. The payment system which Amazon uses is paypal or a credit card.
As the world’s largest retailer on line, you’d think they would use a modern management and advanced management system. But did you know that in fact, Amazon still uses the traditional way of managing their sold items and products?
Goods and products are stored in 80 massive warehouses which serve approximately 30 million on line buyers. The warehouses are very big measuring a 1.2 million square meters and equipped with miles of conveyor belts. The logistics department manages millions of varying items, which are all handled by human hands. The products which are stored in the warehouses are not organized at all. For example, a television that has been sold will not be place on a special type of rack with other similar electronics products. Wherever there is available space, products will be place there.
All of the goods in the warehouse are only marked with a barcode and everything are stored in a random way. The Amazon storage system calls this “chaotic storage”, but this is the key to why Amazon is such a successful business.
The “chaotic storage” system ensures that Amazon utilities empty space and shelves. It also means employees don’t waste time organizing or reorganizing existing products in a particular spot. The product is located at a spot where it’s picked up from the computer. From there, warehouse workers locate the item and then prepare it to be shipped.