Ask Alexa for an example of a meteoric rise to the top and she will probably tell you the story of Amazon’s CEO Jeff Bezos. From an online book retailer to the richest man in the world, Jeff Bezos has made tidal waves throughout a multitude of industries. The wave that rocked the logistics industry the most came in the form of Amazon Prime.
Started in 2005, Amazon Prime is a yearly subscription where consumers receive “free” shipping on anything from a textbook on electrical engineering to a pair of pink sweatpants to a handheld vacuum. The global giant sells virtually everything from A to Z as their logo suggests. While the quantity and variety of Amazon’s product offerings did affect the entire economy, they are not the most disrupting factor to the logistics industry. Its two-day shipping is.
By offering “free” two-day shipping, Amazon has completely disrupted the logistics industry by changing consumer expectations of timely delivery.
According to a study conducted by Deloitte, online shoppers no longer perceive 5-7 business day shipping, a previous industry standard, as timely. They want their llama throw pillow now, or in two days at the latest.
Mom-and-pop shops are affected by the Amazon effect on shipping. Even industry giants are strained by the exigent demands. However, these giants are better equipped to manage the shortening in lead time.
Small and medium business need to optimize their warehouse activities to keep afloat after the Amazon effect.
Katalyst Technologies has the competencies to help businesses overcome the Amazon effect and stay competitive. As demonstrated in the white paper, Path Pick Optimization, Katalyst has an algorithm that greatly shortens the pick path which saves warehouse time and resources. Our algorithm beats out the S-Shaped and Largest Gap heuristics to produce the greatest savings. This optimized path algorithm is the heart of Katalyst Technologies ERP software, Celero.
Celero is a highly customizable cloud-based system that provides easy scalability and integrated modules covering Warehouse Operations, Sales, Customers, Vendors, Purchases, Inventory, and Accounting. Developed using the latest technologies, Celero integrates with most e-commerce platforms to streamline the operations of small and medium businesses across varied industry verticals.
Need more help with Enterprise Resource Planning? Katalyst can help you see the big picture with cloud-based software such as Celero.
-> Certified for value-added resale and end-to-end implementation, Katalyst has the expertise to help with your business needs in sales, service, marketing, manufacturing and E-Commerce.
-> Upgrading a legacy system? Katalyst consultants provide functional and technical remote support as well as system hosting services (AWS).