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Amazon’s New Cross-Dock Facility

Amazon is planning to build an 855,000-square-foot fulfillment center in Goodyear, Arizona.

The fulfillment center will hire 3,000 employees, who will work together with robots to pack online orders for delivery.  In addition to the fulfillment center, Amazon is planning to open a cross-dock facility and six delivery stations across metro Phoenix.

Video Spotlight: 

This post is based on the AZ Central article, Amazon to hire 3,000 in metro Phoenix, including 1,000 at high-tech Goodyear robotics facility, by Joshua Bowling, August 19, 2020, and the YouTube videos in the Spotlight. Image source: Syda Productions/Shutterstock

Discussion Questions:

1.   What role does Amazon’s Goodyear fulfillment center play in its supply chain management?

Guidance: The fulfillment center in Goodyear, Arizona will take online orders from customers, retrieve items ordered from storage/cross dock and pack them for delivery.  Employees help pick customer orders by identifying items for robots to prep and stack on pallets for shipping or stowing.  The result is increased efficiency at order fulfillment, which in turn makes it easier to deliver customers’ orders on-time.

2. What is cross-docking?  Why does Amazon plan to open a cross-dock facility near its Goodyear fulfillment center?

Guidance: Cross-docking is moving product directly from receiving dock to shipping dock without long-term storage.  By opening a cross-dock facility close to its Goodyear fulfillment center, Amazon is able to reduce the need for warehousing/inventory storage to reduce costs, remove movement of product into and out of storage, reduce order fulfillment time, and improve on-time order delivery.

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