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Virtual Supply Chain

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Virtual Supply Chain
VIRTUAL SUPPLY CHAIN Amazon.com

EXECUTIVE SUMMARY

This report will show the meaning of e-commerce and e-business and how they intertwined with each other as exchange is done. It will also identify the different types of e-commerce especially business- to- business and business-to-consumers. It will also aim to identify the policy used by Amazon.com in managing their virtual supply chain ensuring it is relevant and support the aim of the business.

It will also aim to identify the processes used by Amazon.com to enable customers’ satisfaction and to remain profitable. As the amount of trade conducted electronically has grown extraordinary, it is important that the supply, transportation and replenishing of stocks is coordinated timely and most cost effective.

Transparency brings accountability and responsibility. This openness in the supply-chain allows companies to see how their suppliers are performing, from their sourcing of raw materials to their delivery to the retail outlet. Achieving greater transparency in the supply chain requires the development of comprehensive e-Logistics tools, which provide all players with open communication and shared information in every stage of the order-to-delivery process.

Supply-chain transparency in ordering, inventory and transportation is a prerequisite for optimization and is critical for making business decisions. In this report, the experiences of a virtual supply-chain (VSC) company, Amazon.com are discussed with reference to the strategies, methods and technologies of its supply-chain. The supply-chain aims for improved customer satisfaction and hence for overall competitiveness in a global market.

Contents

1. Introduction 4 2. Application of Virtual Supply Chain 5 2.1 Virtual Supply Chain Policy 5 3. Strengths 6 4. Opportunities 7 5. Weakness 7 6.

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