Just how does Amazon do it? Like...14 billion boxes shipped all over Creation. In short: inventory management.
Inventory management is the act of ordering, organizing, storing, and shipping the inventory to be sold.
If you were renting out a warehouse to story inventory, you’d only want to rent as big of a place as you’d need and not much bigger—or else you’re wasting money. But you also don’t want to rent a place so small that you risk not being able to keep enough inventory on hand to keep up with demand influxes.
Balancing fixed warehousing costs, variable inventory-moving costs, timing, seasonal changes, organization, and inventory needs (fragile? large? refrigeration required?) are all involved in inventory management. If you’re an inventory manager, you’re either running a tight ship...or a madhouse.
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