The challenges posed by Amazon Dash Replenishment Service

22nd January 2016
Posted By : Nat Bowers

Following Amazon’s announcement of its new automated order service, Dash Replenishment Service (DRS), Neil Penny, Product Director, Sunrise Software, has commented on the challenges this new model could pose for service providers.

Amazon Dash Replenishment Service enables connected devices to order physical goods from Amazon when supplies are running low - like a Brita Water Pitcher that orders more filters. By using Amazon Dash Replenishment, device makers are able to leverage Amazon's authentication and payment systems, customer service and fulfillment network - giving their customers access to Amazon's low prices, great selection and reliable delivery.

Penny commented: “Amazon’s Dash Replenishment is the retail giant’s foray into instant gratification and user convenience, with the model using connected devices to potentially provide limitless access to products while also removing any effort from the user themselves.

“However, the more seamless and predictive a service appears, the more work must go on in the background to meet these mounting expectations. While the idea is great on paper, it is questionable how realistic it will be for most firms with their current fulfilment strategies.

“Service providers will need to ensure they are up to the task of meeting increasingly tight deadlines. Every element of their service management set up will need to be on top form to meet the strict delivery agreements of their customers, including stock accountability, delivery capacity and order prioritisation.

“While Amazon’s new service is launching with products like print and washing supplies, the automatic model is likely to see widespread adoption across other companies and industries in the next few years. With IoT-enabled devices becoming increasingly more commonplace, more firms will come under pressure to adopt similar approaches.

“Being able to keep track of the complex web of suppliers and service level agreements and respond to demands quickly will be an absolute requirement for any service provider hoping to keep up with demand.”

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