Amazon Scm

Topics: Supply chain management, Target Corporation, Management Pages: 2 (686 words) Published: January 4, 2013
Amazon's supply chain management has an edge over other companies because of the shopping experience the company offers. It also has supply chain and fulfillment capabilities and popular pricing strategies. Another advantage of Amazon is that it manages and ships it's own inventory and the inventory of other companies like Eddie Bauer and Target. These traits have given Amazon an economy of scale that surpass its competitors. Amazon can ship about 10 million products compared to the 500,000 that Walmart ships. Amazon launch in July 1995 as an online vendor. Logistics, shipping and great supply chain management have combined to make Amazon a leading merchandiser of everything from gourmet food to apparel to electronics. The company has also built a reputation for books and music. Amazon has one of the best customer experience as a business because it was one of the first companies who introduced the rating system. The rating system is a way for customers to rate the service that they received from the vendor. This is important because the system creates a way for the best vendors to do business with Amazon. The best venders can have a five star rating while the poor one's can be rated at a two or three. The pricing strategy of Amazon is very effective because there are many venders selling the same product. Some of these vendors end up competing with each other and this usually results in reduce pricing for the customer which is a great advantage. There are many companies on the internet and none of them has a shipping method like Amazon. Amazon ships products for many different companies. Today, Amazon is a leading merchandiser of everything from gourmet food to apparel and electronics. Books and music has surpassed all categories of merchandise because they are what Amazon has become well known for now. It has a large economy of scale because it this action. No other company can compare with Amazon's economy of scale. A company need's an edge over other...
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