Amazon - August 2023

Building supply chain relations to connect a nation

AMAZON: BUILDING RELATIONS TO CONNECT

BUILDING SUPPLY CHAIN CONNECT A NATION

Building strong relationships to connect the nation

As Australia is a vast country, with its major cities located hundreds of kilometres away from one another, Amazon has been focused on offering great value, increasing its selection of products and improving delivery speeds. This has been made possible as a result of Amazon’s continued investment and expansion of its operations in Australia, including doubling its operational capacity in 2022 with the opening of its first robotics fulfilment centre in Kemps Creek, Sydney.

Each year, Amazon prepares for two major events – Prime Day and Black Friday, which kick off the holiday season and are the busiest periods of the year.

“Amazon experiences its biggest customer demand during these events,” Godschalx explains,

“so the entire company is busy preparing. This includes demand planning with our suppliers and increasing our inventory, non-inventory and our labour force.”

What’s more, Amazon Australia employs more than 7,000 people across a variety of different sectors, spanning amazon.com.au, Amazon Web Services (AWS), Kindle, Alexa and Prime Video.

As one of the most remote cities in the world, Perth – on Australia’s west coast –is located far from Australia’s other fulfilment centres on the east coast, Amazon is opening a new fulfilment centre in the city later this year to increase its Western Australian presence by 60%, bringing more inventory closer to customers.

“By opening a new fulfilment centre in the city, our customers in Perth will be able to access an even greater selection of items

Amazon Robotics Fulfilment Centre in Kemps Creek, Sydney

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that can be shipped quickly,” Godschalx says. “This will be a huge win for the region.

“Aside from that, my team has been busy focusing on delivering our portfolio pipeline of plans for the business. We’re focused on making sure customers get what they want, when they need it.”

For Godschalx, this is one of the key areas in which she focuses her procurement efforts. She explains that it’s imperative for the company to have strong relationships with suppliers to ensure Amazon remains flexible and dynamic.

“To do so, we ensure we are increasing our relationships and focus on partnering with suppliers that meet our expectations

opening

fulfilment centre in the city, our customers in Perth will be able to access an even greater selection of items that can be shipped quickly. This will be a huge win for the region”

KELLY GODSCHALX PROCUREMENT OPERATIONS MANAGER, AUSTRALIA & SINGAPORE, AMAZON

Creating healthier, happier, and more productive workplaces

As Australia’s leading unattended micro-market operator, Morsl provides employees with convenient access to fresh, nutritious food and drink options 24/7, making it easy for them to make healthy choices.

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Morsl transforms workplace eating culture: Amazon and beyond

Discover how Morsl’s health-focused micro-markets create healthier, happier & more productive workplaces through the lens of Amazon Australia

Morsl, Australia’s leading provider of healthy workplace food solutions, is dedicated to enhancing workplace culture, employee engagement and fostering a positive work environment. Founder and CEO, Karla Borland, expresses its mission as transforming workplaces into healthier, happier and more productive spaces.

Borland explains: “We do that via our core offering of self-service cafes (micro markets), providing 24/7 access to fresh and healthy food throughout the entire workday. We also provide coffee, breakroom procurement, event catering and employee engagement events across the entire calendar year.”

A testament to Morsl’s success is its presence in the massive Amazon BWU2 fulfilment centre in Australia. Kelly Godschalx, Amazon’s Regional Procurement Operations Manager, describes BWU2 as Amazon’s largest fulfilment centre

in the southern hemisphere. It spans more than 200,000 square metres across four levels. Considering the location of BWU2, in an area with no surrounding food options, an on-site solution was a must. However, choosing Morsl over other options was a strategic decision for Amazon. Godschalx highlights Morsl’s space efficiency and cost-effectiveness, stating: “Morsl is a very space-efficient, cost-effective solution that allows us to service the fulfilment centre, so that our 2,000+ associates have access to healthy food and beverages, while only taking up a small floor space.”

At its core, Morsl’s primary focus is to improve employee wellbeing by promoting healthy eating habits. Good nutrition is particularly important in the industrial space to maintain overall productivity and manage the effects of shift work. Morsl’s holistic range of services makes it an ideal partner to meet all on-site food and beverage needs, while fostering healthier eating habits, employee engagement and wellbeing. One of Amazon’s core cultural values is the equitable treatment of all associates, and Morsl’s flexible solutions achieve this with ease, offering the same great level of service to day and night staff alike.

for providing safe and inclusive workspaces, and promoting a sustainable future”, Godschalx shares.

“I want to ensure Amazon Australia is a great place to work, while specifically making procurement a desirable career path for individuals to pursue”, Godschalx says. “Sustainability is incredibly important to me, because essentially, I believe that sustainability comes down to respect. We have to respect the world that we live in – if we don’t, we’re not really respecting ourselves.

“Likewise, Amazon is committed to investing and innovating in sustainability across its businesses to create a more sustainable future. As a company, we know we have more work to do and will continue to make progress towards becoming a more sustainable business.”

“Amazon is committed to investing and innovating in sustainability across its businesses to create a more sustainable future”

KELLY GODSCHALX PROCUREMENT OPERATIONS MANAGER, AUSTRALIA & SINGAPORE, AMAZON

Amazon Fulfilment Centre in Ravenhall, Melbourne

HOW ONE COMPANY IS REVOLUTIONISING COMMERCIAL AND OFFICE COFFEE SOLUTIONS

One company located in the heart of Australian coffee culture is single handedly changing the reputation of commercial coffee solutions by combining great tasting coffee with industry leading service at companies like Australia Post, Amazon and ANZ

GREAT TASTING COFFEE THAT DOESN’T COST THE EARTH

Santo Buccheri, founder of the Buccheri Group / Coemenate, pours his passion for coffee and sustainability into every cup served across Australia

Santo Buccheri founded the Buccheri Group / Coemenate through a passion for fine coffee. The perfect blend of rich Italian and Australian roots and a firm belief in community, Santo wanted to share that passion with the Australian coffee community.

Santo built the successful business through hard work and dedication, and that can be tasted in every cup – savoured by people at hundreds of cafes all over Australia and New Zealand, but also at companies like Amazon, Woolworths, Australia Post, ANZ, Suncorp, Medibank, and many others. “We are unique in that we are an Australian, family-owned business,” says Santo. “You just don’t see that at the level that we operate at, supplying Australia’s biggest and most well known companies.

“But ever since I started Coemanate, the focus has been on creating a business that can evolve with our customer’s needs, regardless of their size. From the smallest cafes to the largest corporate office buildings.” Buccheri Group / Coemenate help their growers invest

long term in their future by buying high-grade coffee at a premium. This helps them secure the future of their own families and communities.

It is important to understand the whole ‘ecosystem’ of the coffee’s journey, right down to which beans grew in which field. By buying direct from suppliers, Buccheri Group / Coemenate can see for themselves the impact they are having on local communities across the supply chain.

As well as green bean sourcing, careful roasting, and bespoke coffee solutions, Buccheri Group / Coemenate provide barista training, the kind of highly personalised customer service you would expect from a family business, and 24/7 technical service.

“That culture of staying agile and being able to respond to the individual needs of every one of our customers, that’s exactly why our customers like us,” says Santo.

If you want to bring cafe style coffee into your office, contact us for a free trial

60% Amazon will be opening a new fulfilment centre in Perth to increase its Western Australian operations by 60%

Amazon’s sustainable packaging progress

Packaging is one of the key focus areas for Godschalx and her team. Amazon is committed to delivering products safely while innovating to find new ways to reduce packaging and increase recyclability.

In Amazon’s Australian fulfilment network, boxes are 100% recyclable and the company has replaced all plastic, single-use air pillows with recyclable packing paper on orders shipped from its fulfilment centres. Amazon has also reduced the amount of paper used in its boxes to minimise cardboard usage. Globally, since 2015, Amazon has reduced the weight of packaging per shipment by 41% on average, avoiding more than two million tons of material waste. Where possible, the company has eliminated packaging altogether. In 2022, 11% of all packages shipped globally were without added Amazon delivery packaging.

Godschalx’s team also oversees waste services at all of the business’ 20 operations sites across Australia and Singapore.

She adds: “We have established relationships with local suppliers and have set up processes, ensuring that we’re improving our waste and recycling practices.”

Since 2015, Amazon has reduced the weight of packaging per shipment by 41% on average, avoiding more than 2 million tons of material waste

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“Thinking locally, but using our global presence to leverage new relationships, allows Amazon to maintain the ‘local’ element we’re all so passionate about”

KELLY GODSCHALX PROCUREMENT OPERATIONS MANAGER, AUSTRALIA & SINGAPORE, AMAZON

Amazon Associate, Amit Chand

Amazon’s global procurement operations transformation

Over the past three years, Amazon’s Global Procurement Operations Organisation has been going through a global transformation, which has involved procurement teams working together in a bid to ‘think global, act local’. It means countries like Australia and Singapore can share insights and learnings with teams from the US, Europe and South America.

“We have global categories set up, but given the nature of our operations business, it’s important to us that a lot of what we do is produced locally,” says Godschalx.

“We have set up local operations for particular non-inventory items. We also need to have a lot of on-site services, such as those for food, waste, pallet management and hygiene services, as well as pest control. These often need to be managed by local providers and suppliers as well.”

Godschalx shares an example of how Amazon was previously importing one particular item from the US to Australia, which took around six months. To overcome this, Amazon partnered with a global supplier to find a local Australian supplier, who they could work with to set production up within the country. This reduced that six-month time period to just one week.

“Thinking locally, but using our global presence to leverage new relationships, allows Amazon to maintain the ‘local’ element we’re all so passionate about, while also ensuring we’re able to deliver to our customers on time.”

Godschalx continues: “I’m really excited about the future of the company, and to see how my team and I can continue to make a positive impact.”

Amazon’s Global Procurement Transformation

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