Amazon Case 
Chapter 14: Supply chain management and logistics
Amazon: Delivering the goods … millions of times each day!
Challenges
How to deal with “seamless flow of deliveries to customer”?
Supply chain: the most expensive aspect of the business
Supply chain management and logistics is the key of success
Company background
Established in 1994 and open virtual door in 1995
Pick up dot come bubble and developing their company other than books
Products: books, CDs, videos, toys and games, electronics, kitchenware, computers, cards, and auctions
Services: search for books, personalized recommendations, based on part purchases
Sales $3billion annually.
Delivery process
Inventory: 2.7 million products
Flow of products from suppliers distribution centres customer orders individuals’ homes or offices
1. Suppliers
Target: increase efficiencies, improve inventory turnover, interactive relationships
Action: Using software to forecast purchasing patterns by region suppliers have better info about delivery dates and volumes
Improvement: 12 4% wrong location delivery, lost time, delayed orders
2. Distribution centre customer orders
Improvement of technology:
Telecommunication networks ensure that all items are in the box before it is taped and labeled
Special Event:
During nov 9 and dec 21, 37.9 millions and 450000 harry porters were shipped and delivered on time!
Opportunities
Growth from sales of books
New product and services
Pursue a providing access to existing operations to other retailers (adding toy r us as an Amazon’s site)
Questions
1. How do Amazon.com’s logistics and supply chain management activities help the company create value for its customer:
Large inventory on hand
On time delivery, shipment
Easy check out, payment method
Reliable
Fast
Able to access during peak time, holiday season
Large array of brands name
Large communication channel B2C, C2C
2. What systems did Amazon develop to improve the flow of products from suppliers
Amazon: Delivering the goods … millions of times each day!
Challenges
How to deal with “seamless flow of deliveries to customer”?
Supply chain: the most expensive aspect of the business
Supply chain management and logistics is the key of success
Company background
Established in 1994 and open virtual door in 1995
Pick up dot come bubble and developing their company other than books
Products: books, CDs, videos, toys and games, electronics, kitchenware, computers, cards, and auctions
Services: search for books, personalized recommendations, based on part purchases
Sales $3billion annually.
Delivery process
Inventory: 2.7 million products
Flow of products from suppliers distribution centres customer orders individuals’ homes or offices
1. Suppliers
Target: increase efficiencies, improve inventory turnover, interactive relationships
Action: Using software to forecast purchasing patterns by region suppliers have better info about delivery dates and volumes
Improvement: 12 4% wrong location delivery, lost time, delayed orders
2. Distribution centre customer orders
Improvement of technology:
Telecommunication networks ensure that all items are in the box before it is taped and labeled
Special Event:
During nov 9 and dec 21, 37.9 millions and 450000 harry porters were shipped and delivered on time!
Opportunities
Growth from sales of books
New product and services
Pursue a providing access to existing operations to other retailers (adding toy r us as an Amazon’s site)
Questions
1. How do Amazon.com’s logistics and supply chain management activities help the company create value for its customer:
Large inventory on hand
On time delivery, shipment
Easy check out, payment method
Reliable
Fast
Able to access during peak time, holiday season
Large array of brands name
Large communication channel B2C, C2C
2. What systems did Amazon develop to improve the flow of products from suppliers