Interested? Do you feel you will benefit?

All Rights Reserved. marcus evans ® 2020

FUTURE WAREHOUSE & LOGISTICS 2020

^{Creating a Synergy between People, Process and Innovation for a SMARTER Operating Facility}

10 - 12 March 2020

Dubai, UAE

marcus evans Middle East

An Interview with Prashant Saran, Director of Operations from Amazon, MENA

Ahead of the Future Warehouse & Logistics 2020 Conference, we spoke to Prashant, who has shared with us on some of the key strategies and techniques about how to lower operational expenses from errors, techniques to increase warehouse space utilisation and flow, meeting customers’ expectation and same day delivery whilst minimising overheads  through sustainable operations. 

1. How can organizations determine KPIs to evaluate performance and achieve cost-effective operations?

At Amazon, we are guided by 14 leadership principles – they guide what we do as individuals and as a business to deliver for our customers. ‘Customer obsession’ and ‘invent and simplify’ are two of these principles, and you can see them embodied in the way we run our business. 

Let me give you an example: We ship millions of items from our fulfillment centers. Within our pack stations, when an associate receives an item to be packaged, they scan the item and their computer tells them what box size is most optimal for that particular product’s size and weight. Then, when the associate goes to tape the box, a machine will provide the exact right amount of tape for that particular box size. it means we’re using fewer resources, increasing efficiency and ultimately delivering the most perfect packaging for that item to ensure the customer experience is the best it can be. The associate does not spend time considering what size box or tape to use - the computer does that work so the process is more efficient.  Similarly, we have created algorithms that optimize pick paths for associates. When one of our associates picks an item off the shelf for a customer, the computer analyzes where their last pick in the fulfillment center was and sends them to the next closest location to help increase efficiency. These examples embody the Amazon leadership principles, yielding the best results at the lowest costs while also delivering excellently for our customers and our associates.

2. What are some of the suggestions for e-Commerce businesses in meeting customer demand with faster and more flexible delivery?

At Amazon, everything we do revolves around the customer. We are constantly working to optimize our delivery network and drive efficiencies when delivering our products. To fulfill customer orders quickly, we have thousands of vehicles moving from fulfillment centers to delivery destinations. We use data and algorithms to consolidate as many shipments as possible onto one vehicle or plane. We also analyze and forecast which items are being ordered most frequently, by location, to ensure that the inventory of those items is stored nearby, minimizing the need to use planes or trucks for long-distance deliveries. 

By boosting efficiencies across our network, we avoid the need to put more vehicles and planes into service. Let’s consider our Delivery Service Program as an example, a program that is seen and known today as a game-changer for the industry and our customers.  With this program we have moved towards the delivery of packages through local courier companies called Delivery Service Partners (DSP) that help increase flexibility and ship things faster to ultimately benefit the customer. During peak season, such as White Friday here in MENA, we delivered thousands of customer items through our DSPs that reached some remote locations in the UAE and KSA.

3. How can sustainable warehouse enhance operations in warehouses and distribution centers?

Our belief is that every part of our Operation must have sustainable solutions built in. Whether it is investments in technology or a commitment to make Operation more efficient at each step for the best possible customer experience, organizations can enhance operational efficiency and positively impact the business, the environment and the communities they operate in.  As a company, we invest in a combination of human energy and smart engineering to continually progress toward our vision of becoming Earth’s most customer-centric company. Consider this: Would an online retailer be more environmentally sustainable than its stationary counterpart? Studies show that one single van can deliver the same number of items as 120 private car trips. This not only means a huge reduction in trips and a drastic reduction in CO2, but an operation that is more efficient.

4. What are the opportunities of building a successful relationship with 3PL providers? 

The heart and soul of Amazon’s Operations are both the employees and partners we work with to deliver smiles to our customers. In order to continue to support growing demands, Amazon launched the Delivery Service (DSP) Program in 2018. The program enables entrepreneurs to build and grow their own delivery business. With access to Amazon’s delivery volume, safety training programs and sophisticated routing technology, these entrepreneurs can focus on developing their teams and connecting with their community.

5. In your opinion, how has digitalization and automation transformed the e-Commerce business landscape?

We believe that the power of technology, digitization and automation is truly transformational. We’ve come a long way from a single garage in Seattle back in 1995. Today, we operate over one hundred fulfillment centers, shipping millions of items to customers. Our teams around the world are constantly working in our fulfillment centers to understand how we can continue to improve. The impact of cutting-edge investments and innovation has been significant for our business, as technology and associates work in harmony to deliver what feels like ‘magic’ to our customers.

Looking closer to our region, we introduced Amazon Prime for our UAE customers last year, allowing them access to bespoke services such as same day delivery and free next-day delivery, going above and beyond customer expectations. Taking White Friday 2019 as an example, we invested significant resources to make things happen from our biggest fulfillment center in the UAE, which is spread over a 23,000 square meter facility in Dubai South (DXB3). Our advanced logistics network and increased fulfillment capacity also benefits our selling partners - thousands of small and medium businesses - to scale up their business on our website.

6. What are some of the best practices to reduce errors and increase accuracy in the warehouse and distribution center?

We invest a lot in technological solutions that help the entire fulfillment process. For example, our SLAM process (Scan, Label, Apply, Manifest); starts after the SKUs are packed in a box and the box is then verified for weight and height to ensure that the customer gets the correct item in the right condition. The system uses a special scale conveyor. This technology also ensures that the label applied on the package is correct and readable.  

7. Benefits of leveraging into Smart Storage to improvise space utilization in warehouse and facility center?

What makes Amazon Fulfillment Centers smart and transformative is the way we organize our inventory – with complete randomness! Instead of storing items as a retail store would — electronics on one aisle, books on another —all of the inventory at Amazon fulfillment centers is stowed randomly. This makes it easier for associates to quickly pick and pack a wide variety of products. The random strategy may seem chaotic to an outsider – it does work for us and more importantly for our customers, guaranteeing speed and efficiency. Our sophisticated computer algorithms know where every item is located and optimizes the picking order and path for our employees to make the process as efficient as possible.

Why you should attend this Marcus Evans conference?

 What You Can Expect: 

Full-day Post Conference Workshop 

"Digital Supply Chain: The Route to an Effective Warehouse Management"

Exclusive Site Tour

 An exclusive and insightful visit to Unilever’s transformational State-of-the-Art Warehouse in Dubai

Featuring International Plenary Keynote Speakers: 
Prashant Saran, Director of Operations                                                                       Amazon, MENA

Vimal Narayanan, Vice President – Supply Chain Deployment
Schneider Electric, Singapore 

Anant Gairola Head of Operational Excellence – Customer Care
Walmart eCommerce, USA

Practical insights from active practitioners in your sector

• Jan Gliszczynski Logistics Specialist
  Leading Logistics Solution Designer, Germany
  

• Ahmet Gulec, Operations Excellence Director
  DHL Supply Chain, Turkey
  

• Marco Antonio Carreno, Supply Chain  Cluster Director (Kuwait, Iraq, Iran)
  Kuwait Food Company (Americana), Kuwait
  

• Ahmed Nasr,  Warehouse & Logistics Manager
  Mondelez International, Bahrain
  

• Shankar Subramoniam, Executive Director – Freight and Logistics
  National Association of Freight and Logistics (NAFL), UAE
  

• Enayet Kabir, Head of Procurement
  Noon.com, UAE
  

• Mohsin Khan,  Supply Chain Director
  L’oreal, UAE
  

• Sandeep Sharma, Supply Chain and Procurement Director
  Domino’s, UAE
  

For registration pricing and multiple attendee discounts, please contact:

Anna Foo Koay Kuan

annako@marcusevanskl.com