One type of Amazon facility consolidates packages based on geographic location for faster last-mile delivery. These centers focus on efficiently sorting and routing packages originating from various fulfillment centers to local delivery stations. Another type of Amazon facility is where products are stored, picked, packed, and shipped directly to customers. These larger hubs manage inventory and handle the initial stages of order fulfillment.
The optimized flow of packages from suppliers to customers is crucial for efficient e-commerce operations. The distinction between these two facility types significantly impacts delivery speed, cost, and overall customer satisfaction. Historically, Amazon relied primarily on the latter, but the increasing demand for faster delivery has necessitated the expansion of the former type to enhance logistical capabilities.