Logistic Amazon

Powerful Essays
Contents Summary 2

The flow of inventory 2

The improvement of logistics 2

Inventory Cost 3

Delivery Process 4

Other company initiatives to Gain Profitability 4

Launching Amazon in the UK and Germany 4

Launching Amazon in France 4

Amazon’s challenges 5

Globalization and localization 5

Theories 7

Integrated Supply Chain 7

8R’s 8

Supply Chain Issues 9

Appendix 10

Summary

The flow of inventory

At the first beginning, Amazon had hold the modest inventories and rely on the wholesalers – primarily Ingram Book Company and Baker & Taylor – to build its online book catalogue and source its huge market. It offered 2.5 million titles. 2,000 of them are stock in its own warehouse which is facility in Seattle and others were sourced on only if the customers placed an order. After receive the order, it would submit the purchase order to the wholesaler. The wholesaler will then ship the stock to the Amazon’s distribution center. Once the titles have reached the warehouse, Amazon employees would pick and pack the order and ship it to the customer.

The improvement of logistics

Growth of the Seattle distribution center capacity has enabled Amazon increased the number of titles held in the center. It also launched a second distribution center in Delaware to decrease order fulfilment lead times and lessen its dependence on its main supplier Ingram. Besides, Amazon, as well, develops new software to support its back-office operations. Furthermore, Amazon has adapted its supply chain and distribution network to support the new product lines and features transformation and its projected triple-digit growth. It has turned the executives to outside experts and used i2 Technologies’ Supply Chain Strategist software package to consider for its distribution facilities. It is based on factors such as supplier and customer locations, inbound and outbound

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