CLGO Students Visited Amazon Kunshan Center

On Dec. 5th, 2014, SJTU-CLGO teachers and students visited their partner industry —Amazon operation center in Kunshan. Located in Huaqiao Economic Development Zone (Kunshan) with the coverage of 120,000 square meters, it is the tenth operation center of Amazon in China. It is also the largest and most advanced storage center in Chinese business field, which apply Amazon’s global storage management system with about 230000 throughputs daily, supporting the operation of Eastern China area.

CLGO students were warmly welcomed by Amazon staff. Senior manager Zheng Yang (CLFM 2007 alumni), operation manager Phillips Feng (recruit of Pathways 2014), HR manager Della Song and Wu Yingzhi gave brief introduction and tourist guide to CLGO students.

First of all, on behalf of Amazon Kunshan, Zheng Yang extended sincere welcome to the visit of CLGO students and encouraged them to work for Amazon after graduation. He mentioned in particular the similarities between China Pathways and CLGO. Zheng joined Pathways program since graduation. Ever since then, he has served for Amazon for five years, during which, he participated in the set-up of Kunshan operation center. Together with his leaders, he was responsible for the recruitment and running of the whole center and gained much experience from it. Then he changed the subject from the perspective of customer’s experience and introduced the icon of Amazon culture – Amazon Flywheel to CLGO students. Rich choices, convenience and low price composed the three pillars of Amazon Flywheel. Customers’ experience was the start and also the end of the service and this virtuous circle would in turn propel the high speed development of Amazon. Zheng quoted the view from Jeff Bezos, founder and CEO of Amazon on E-business and by applying Flywheel, Amazon gradually became the first and the best E-business company in the world. Then Phillips Feng shared the challenges and helps he got since he joined the Pathways three month ago from a new recruit’s perspective. Della Song and Wu Yingzhi from HR department introduced Amazon’s company structure and employee welfare to students.

After that, CLGO students started the highlight of this visit – FC tour. Zheng Yang, senior training manager Shen Wei and operation manager Li Peiyuan introduced the Storage, Inbound and Outbound area respectively to students and this clearly showed how Amazon Flywheel worked in fulfilling rich choices, convenience and low price. Zheng Yang first guided students to book storage area and introduced how Amazon realized the rich choices. Students were all interested in the “random storage principle” he mentioned, which would reduce the training of new employees because it didn’t require the precise memory on overall arrangement or a specific position. Thus allowed the smooth replacement of old and new employees and also made it easy for the recruitment of part-time jobs in peak seasons. Then senior training manager Shen Wei introduced how Inbound area worked. Students noticed that in this area, suppliers and Amazon employees finished the delivery in front of a supermarket-counter-like equipment. So the assets could be differentiated clearly and made it easy for tracking and management. Shen Wei also introduced how Amazon handled the shopping carnival during 11.11 festival in full preparation in human resource, storage and financial support to ensure the high-speed operation of the center. At last, operation manager Li Peiyuan, a CLGO alumnus, introduced how Outbound area was running.  The concept of convenience was carried out in both Inbound and Outbound area so that Kunshan Center could ensure “the same-day delivery” in Shanghai, Suzhou, Wuxi, Shaoxing and Jiaxing. Amazon also has a special delivery arranged at 2 a.m. every day. In this way, a customer in Shanghai could get his or her package in the morning even if he or she shopped at 12 o’clock in the evening.

After the visit, CLGO students came to the meeting room for Q&A section and asked about all kinds of questions. One student asked about the self-made simple spare parts almost everywhere in Amazon center. Managers believed that this was the practice of low price in Flywheel. Amazon has successfully planted the low-cost concept in every employee’s heart. Every year about 10% productivity increase was realized by creative thought like this and reduced the cost of the operation center. Students also asked questions about local company competition and employees’ development and all got satisfied answers.    

At last, CLGO students took pictures with Zheng Yang in front of Amazon Kunshan center in memory of this unforgettable trip. CLGO organizea trips to domestic and foreign companies every year to help students get a deeper understanding of company’s manufacturing and operation and also get an opportunity to know MIT LGO higher- level alumni. Those trips all supported by CLGO partner industries and help to further the understanding between the two parts.