Amazon' European Distribution Strategy

Topics: Inventory,, Europe Pages: 3 (1647 words) Published: November 2, 2014

Amazon was established in 1995 by a certain Jeff Bezos. The company was established with an objective of using internet to transform book buying into a faster, easier and better shopping experience. It started with a selection of 1 million titles to finally claim the title of the earth’s biggest book store. The strategy used by Amazon was to maintain modest amount of inventory and highly rely on the wholesalers for source of vast selection. Amazon placed an order with its wholesalers as soon as it got orders from customers eventually to set up direct accounts with the publishers. The growth of the company in a couple of days made the company management to set up a 285000 square feet DC in Seattle and second one soon after in Delaware to serve the east coast. This reduced the order to mailbox time needed. In 1998 the company expanded its business to music stores and video, DVD stores. With such an expansion and high growth rate achieved by Amazon the company took help from the external agencies like I2 technologies supply chain software package. Using this software and also with further narrowed search based on labor, employment and tax levels Amazon started to expand. Amazon set up its DC in Nevada, Kansas, Campbellsville, Kentucky and Georgia. With such a huge build up Amazon started to sell everything from the books to kitchen appliances. All of its distribution centers held all kinds of product Amazon used all kinds of modern RFID and computer software techniques to line up its pickups. It assigned a certain Amazon Standard Identification Number to check on the pick list. It also used bench marking and performance measurement technique to its best possible way to achieve new goals and targets. The then VP of operations Jeff Wilke then worked on six sigma and Total quality management to streamline the US distribution centers. The management stared to refine the software used for forecasting for reducing risk of over buying, establishing buying...
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