Amazon Bin System Case Study
About technology policy, Amazon has been committed to improve logistics efficiency and cost savings. Because the amazon sales are very large, so inventory and logistics management requires more reasonable technical methods. A good management system not only can improve the efficiency of operation, also can reduce the risk of inventory and logistics management, to avoid unnecessary loss. So in this part, we will talk about Amazon’s Bin System which is Amazon’s warehouse management system, it is also called in stock and bound cargo system.
First of all, we analyzed how the Bin system works. There are five parts of Bin system operation process.
First is receiving, the Bin system receiving the actual purchase order as a cargo space, …show more content…
During shipping, the goods contain in the order will transfer from seized goods container to package process.
After analysis the whole process of Bin system, we can see the Bin system really managed the goods, cargo space and quantity very well. And there are two main advantage of Bin system.
During traditional receiving, it always confirms the received goods quantity in the system after counted the goods. But after using the Bin system, as we talked before, it receiving the actual purchase order as a cargo space, and transfer it to the van’s cargo space. It can receive the goods while scan them, combined receiving and counting, the efficiency is improved, and, more importantly, is actually a system counting. Receiving personnel can focus on check whether the goods is unqualified, improve the quality of the goods.
After receiving goods due to the truck and the quantity recorded in the system, the shelf part can be directly. Shelves can be directly based on the data of the van, without having to match purchase order data. It not only reduces the workload of shelves personnel but also improve the accuracy. Because everything is record in the system, reduce the risk of …show more content…
Even though Bin system can achieve high efficiency and high accuracy inventory management, but the cost is also high. First of all, though Bin system database structure is relatively simple, but the amount of data is large, any stock transfer operation must be synchronized with the system, read and write load of the database is great and the database system highly rely on reliability and stability. Second, all inventory transfer of operating and system synchronization need equipment, these devices must have mobile ability, each operating personnel must be equipped, and the investment is very