A big word of thanks to ECR Ireland who helped arrange a remarkable visit to Amazon’s Fulfilment Centre in Dublin, and to the Amazon team who generously hosted us.
While pictures weren’t permitted, what we saw and heard offered some great lessons. Here are a few reflections based on the tour:
1. The Process Is Familiar – The Scale and Speed Are Not
At its core, Amazon’s operation follows the same basic steps as any business with a physical supply chain: receive, put away (or “stow”), store, pick, pack, and despatch. What sets Amazon apart is not what they do, but the scale and speed with which they do it.
2. Data Drives Everything – Calmness in the Chaos
One of the most noticeable things was the pace: despite the scale of operations, there was no sense of rush. That’s what real-time data visibility enables. Every movement is scanned and tracked, with QR codes and scanning technologies used at every step. The system knows exactly where items are, where they need to go, and how much time is available. Calm, continuous flow replaces chaos and fire-fighting.
3. Smarter Storage, Not Dedicated Bins
A standout observation was that multiple SKUs were stored in the same bin locations, and the same SKUs were spread across multiple locations. This may sound messy, but it actually improves cube utilisation. Rather than having some bins overfilled and others nearly empty, storage is dynamically balanced. This is counter-intuitive to many traditional warehousing models, but backed by experience and data, it works.
4. Algorithms Guide the Work – People Follow a Trusted Flow
The site’s Warehouse Management System (WMS) is driven by sophisticated algorithms, managed by a dedicated team known as the Flow team. Their job isn’t to firefight; it’s to oversee the system and fine-tune the flow. The WMS generates tasks, people execute them, and the system continuously adjusts. What’s powerful here is the robustness of the core process, the accuracy of the data, and the trust in the system – which is where many companies struggle.
5. Reliability Comes First. Speed Second. Cost Third.
One of Amazon’s core operating principles is reliability. It comes before speed, and cost comes a distant third. Why? Because their entire customer proposition is built on trust. Customers return again and again because Amazon reliably delivers what was promised. In practice, this means Amazon will spend more on individual orders or break the flow if that’s what it takes to honour their promise to the customer. That mindset is rare – and powerful.
6. Amazon Is an Open Book – If You’re Willing to Read It
Perhaps surprisingly, Amazon is quite open about how they optimise their operations. The SCOT (Supply Chain Optimization Technologies) team shares research and academic papers explaining the thinking behind their systems. Most people don’t realise it – or don’t take the time to read it – but it’s there, and it’s rich in insight.
If you want a window into that thinking, have a look at this article on Amazon Science, which outlines how their inventory planning system evolved. It’s a fascinating read.
7. An overnight success – 30 years in the making
The amazon leadership team talked of the 3 A’s for the process. Automating, Accelerating and Augmenting. This philosophy is hugely impressive when you see where it is today but the team there are very clear that they have spent the last 30 years refining and adjusting to get to this point. What you see today did not happen overnight, it is a gradual process. It is interesting also to hear that despite the massive profits the company makes, no dividends are paid and all the proceeds go back into improving the model. The key take-away being the focus on continuous improvement and making changes, no matter how small the apparent impact. With the scale Amazon has, a small improvement can lead to huge benefits.. but each is compounded on the last to create the phenomenal process that exists today.
Final Thought: Simple + Accurate + Scalable
Amazon has spent over 30 years refining a simple set of processes, backed by 100% accurate data, optimised through algorithms, and executed by teams that trust the system. In the end, their secret isn’t a secret. It’s a simple principle:
Data is a differentiator – but only when it’s accurate and used wisely.
A fascinating tour, and a big inspiration.
if you are interested in applying some of these concepts yourself, lets have a call and we can discuss what you aspire to achieve, and how you can plot your own path.
