In the second quarter of this year, Amazon’s North America sales grew 28 percent year over year to almost $18 billion. Amazon now owns or leases 40 aircraft and over 4,000 trucks, its has own cloud software hosting business with revenues of $10 billion a year and a growing end product delivery business.
Amazon does not manufacturer, it is a brilliant and terrifying Ecommerce and fulfilment business, increasingly controlling the relationships with its customers through services like Amazon prime.
So what does this have to do with integration? Everything.
Imagine that you break your favorite golf club whilst in the middle of a great round. Whilst you are still on the course you call out to your smart phone that you need a replacement golf club. The smartphone connects to Google who check several websites and recommend Amazon. Amazons website tells you the options, prices and which clubs are available now and you tell it to order one asap. Your card is charged and your order will flow in microseconds via Amazon to the manufacturers software who will alert Amazon to the closest stock, or even offer to 3D print the club locally.
Almost immediately the manufacturer software will calculate the time required to get the item to a pick up bay, and once Amazon knows the pick up slot it will calculate the best available slot for a drone to schedule the pick up and the time to fly to your requested delivery point.
You will be notified of the time the product will be delivered (happening a few seconds after the order was placed) and potentially the nw club will arrive just after you start to tee off the next hole.
Futuristic - perhaps. The crazy truth is that all the components and much of the integration already exists. Amazon has spent years building electronic fulfilment processes with its supply chain. The only real shift is the availability and legality of low cost, driverless and fast delivery fleet.
Its not really a case of IF this happens, just how fast it will happen. The good news for you is that it is more of an opportunity than a threat. This is because powerful supply chain integration is now possible and accessible for businesses of any size and budget.
We can work with you to understand where you are at now, where you need to be. And craft the best possible journey for you and your customers, one that will get you ahead of the eCommerce fulfilment and integration curve.
Simon is passionate about helping businesses leverage technology to outstrip industry growth norms.
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