The challenge: Amazon has synchronized and integrated their supply chain to deliver products to customers when they want, how they want, and at the pricing they prefer. By controlling their own inbound and outbound deliveries (air, land and sea) and connecting all of the pieces in the digital supply chain together, the e-commerce giant is functioning as an independent and “vertically integrated” supply chain, focused both on the customer and on ironing out inefficiencies related to limitations of traditional TMS systems.
Through the use of Artificial Intelligence (AI), Amazon has made every aspect of their supply chain “smart.” Eliminating shipping errors while optimizing routing decisions based on real-time market conditions, Amazon’s supply chain design is so powerful it leaves competitors with few options: sell on Amazon, be pushed out of the market, or adopt a NextGen cloud TMS.
Moving beyond the traditional label maker TMSs commonly utilized by most e-commerce strategies is essential if companies want to succeed among evolving consumer expectations. Rate shopping, label generation, and tracking are not enough in the age of dynamic consumer control.