Amazon supply chain case study
Amazon over view
• Amazon.com is American based multinational electronic commerce company. • Amazon was founded in 1994 by Jeff Bezos. Launched online in 1995 It started as an. On line bookstore. With 2 5 million titles it became the earth's biggest bookstore • Amazon.com offer Web users the entire selection of titles at discounts of 30 percent or more. The company has since diversified into the sale of new, used, refurbished and collectible items in diverse categories. • In 2008, Amazon had eight warehouses in the U.S. and another fifteen in the rest of the world.
Amazon supply chain portfolio
• Amazon.com sells books, music, and other items over the Internet. • It is one of the largest e-commerce firms, with a market capitalization of more than $20 billion. • Amazon.com operates 7 websites that support their business operation globally and offers 20 million items for sale • Amazon takes a Six Sigma approach to its distribution operations, and applies lean manufacturing and Total Quality Management methodologies to its processes. • Amazon Conducting business on an international scale (the e-tailor ships to more than 200 countries) • Amazon use a global trade management solution to provide customers in more than 40 countries details on the full cost of orders, including country-specific duties, taxes, tariffs and licenses. • Part of Amazon's supply chain proficiency is based on its operations philosophy, which is more reminiscent of industrial manufacturing than traditional retail Amazon supply chain key issues
• Downstream supply chain flexibility.
• Amazon knew what to do with the Internet.
• Amazon is a master of the supply chain.
• Amazon uses few distribution centers the E-commerce allows Amazon to centralize the stocks
• Inventory centralization pays off most for expensive, slow moving products with high demand variability
Please join StudyMode to read the full document