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Amazon Whole Foods

633 Words3 Pages

Addition of Whole Foods Compels Amazon to Re-strategize its Grocery Storage and Delivery Facilities
Amazon is an American e-commerce and cloud computing company which is continuously spreading its wings across diverse sectors such as household, fashion, lifestyle, beauty and food products. Amazon is one of the largest Internet-based retailers in the world by total sales and market capitalization. Amazon had recently started an online bookstore and now it hopes to win the bid to buy the Whole Foods Market Inc worth $13.7 billion.
In order to add the whole foods market in its kitty, Amazon will have to focus on improvising its logistics by increasing the warehouse area by adding other specialized grocery distribution storage spaces. Without …show more content…

This is because its warehouses are strategically located all around the United States. In 2016, Amazon held a total of more than 100 million square feet of space and storage area. It also comprises of state-of-art technology such as robots for efficient functioning and faster work process.
When it comes to storage facilities for whole foods, it is way more complex than other types of warehouses. It is not a simple open storage area. Perishable foods require refrigeration and a single warehouse needs at least have a dozen of similar temperature settings that can store products at desired temperatures before being delivered. These warehouses require certification from U.S. Food and Drug Administration. Also, the storage shelves and surrounding area must be kept clean and germ-free to prevent food spoilage.
In order to become a giant online retailer of the grocery foods, Amazon will have to make bigger investments and greater arrangements. According to the MWPVL, whole foods hold around 1 million square feet space of warehousing, and a major portion of this inventory directly goes from the suppliers to the grocery

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