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Amazon Fulfillment Centers (FCs) are essential hubs in online retail, ensuring orders are processed efficiently worldwide. Their location greatly affects how well they work and the service they offer. Here, we discuss why their location matters for making seller operations work better and meeting customer needs.
Location affects FC performance vastly. Top FCs in towns like Florence & Somerset, NJ, and Westmoreland, NC, excel. Proximity to markets and efficient shipping are vital factors in FC performance.
Prioritize FCs in strategic locations. Use ABE8, TEB9, and CLT2 in the Northeast USA to boost efficiency and meet customer demands.
Location plays a crucial role in fulfillment center (FC) performance. FCs close to major population centers, such as ABE8 and TEB9 in New Jersey, have lower check-in times, facilitating swift order processing. On the other hand, FCs like SMF3 in California, with a higher check-in time, may have delays due to distance from key markets.
The Northeast region boasts impressive fulfillment center performance, as shown by ABE8 (NJ), TEB9 (NJ), and AVP1 (PA). ABE8 leads the pack with a remarkable check-in time of 3.14 days and a weighted FC performance score of 0.69. Similarly, TEB9 demonstrates efficient operations with a swift check-in time of 3.16 days and a commendable weighted FC performance score of 0.64. Despite AVP1 having a slightly longer check-in time of 3.6 days, its weighted FC performance score remains notable at 0.2.
In the Midwest region, MDW2 (IL), FWA4 (WA), and IND9 (IN) represent the best performing fulfillment centers. MDW2 demonstrates respectable efficiency with a check-in time of 4.33 days and a corresponding weighted FC performance score of 0.31. Similarly, FWA4 maintains a steady pace with a check-in time of 5.14 days, albeit accompanied by a slightly lower weighted FC performance score of 0.25. Despite IND9 exhibiting a slightly longer check-in time of 5.31 days, its weighted FC performance score remains noteworthy at 0.17.
In the West region, LAS1 (NV), GYR3 (AZ), and SCK4 (CA) exemplify fulfillment center performance. With a check-in time of 5.08 days and a weighted FC performance score of 0.47, LAS1 demonstrates efficiency and reliability. GYR3 maintains a competitive edge with a check-in time of 4.15 days, closely followed by a weighted FC performance score of 0.42. Although SCK4 exhibits a slightly longer check-in time of 5.51 days, its commendable weighted FC performance score of 0.38 underscores its dedication to operational excellence.
In the South region, CLT2 (NC) stands out for its exceptional fulfillment center performance. With a check-in time of 4.38 days and a commendable weighted FC performance score of 0.61, CLT2 demonstrates efficiency and reliability in its operations. Despite longer check-in times, both SBD1 (CA) and FTW1 (TX) strive for improvement, with weighted FC performance scores of 0.24 and 0.23 respectively.
Check-in time is crucial for FCs. Shorter times mean faster handling. FCs like PHL1 and MEX2 average 1 to 1.3 days. This ensures prompt processing. But long check-in times risk delays. Analyzing check-in times helps sellers optimize operations.
Throughput is the shipment handling rate. It is a measure of operational efficiency. High throughput means better operational capacity and fulfilling orders quickly. ABE8 and TEB9 process millions. They keep check-in times low. High throughput and low check-in times are vital. They improve fulfillment efficiency. Sellers can enhance operations by using FCs with better throughput.
Picking the best spots for Fulfillment Centers (FCs) is crucial for quick orders. Sellers should choose FCs near buyers and good transport hubs. This saves on shipping and keeps customers happy. In the online shopping world, it's essential for a smooth experience everywhere.
We assessed the following performance metrics from a subset of internal data records and Amazon reports:
FCs were ranked using a weighted system, favoring superior efficiency(higher throughput & lower check-in times). We visualized the ranked data with intuitive charts and insightful commentary, offering actionable insights for ecommerce merchants.
