A case study of Amazon on its supply chain management

INTRODUCTION Every company has their own supply chain in order to sort or produce goods. However, the company needs to manage supply chain to maximize its highest benefits. By having effective supply chain management, the company can ensure that the right product or service will be available at the time to the right place and at the right price (Kamal 2007). Amazon is one of the companies that have best supply chain practices in order to respond high level of responsiveness for the customers. Thereby, this paper explains about Amazon Company, analysis of Amazon’s supply chain, recommendations and barriers to implement will be discussed. Company background Amazon is an American commerce company based in Seattle, Washington, USA.†¦show more content†¦It was a right decision for Amazon and the company is able to reduce the cost of holding large amount of inventory while the customer service is better as it shipped faster. Managing the supply chain with its wider context and organization context Price differentiated customers Dispatch and delivery options were used to divide customers into each category based on responsiveness because difference customers need difference service levels and difference prices. Amazon has provided many types of deliveries in difference costs such as free super saver delivery, one-day delivery, First-class delivery and etc (Amazon 2013). Each type of delivery reflects how fast the delivery is. It means if the customer needs very high responsiveness, get the products by tomorrow, the buyers are willing to pay more. So Amazon divided customer segments to match with its distribution systems and inventory strategy in order to control cost and service level. The company also received increased flexibility (Duran et al 2006). Moreover, there is a membership programme called Amazon prime. It provides unlimited one-day delivery for one year and it costs 49GBP. Once the buyers are member of prime, buyers will get discount if the buyers want to get expres s or evening delivery. The members will also able to borrow kindle books for free (Amazon prime 2013). Push-pull strategy Amazon has started with pull systems. There is no inventory, no warehouse and no overhead. TheShow MoreRelatedSupply Chain Management : Case Study869 Words   |  4 PagesMicroeconomics 25 March 2015 Supply Chain Management Tom Greening once said, All management begins with planning† (Tom Greening). Those who study and research supply chain management will agree that the aforementioned quote holds true in their field. Companies looking to reduce their costs and better their customer service often look to implement supply chain management. In order to effectively execute successful supply chain management one must acknowledge the importance of demand management, communicationRead MoreWhy Is Supply Chain Important For Businesses? Supply Chains?3746 Words   |  15 PagesWhy is a supply chain important for businesses? Supply chain is a chain of interconnected links that facilitates the movement of supplies, materials, products, and so on (Arway, 2013, pp.3). Supply chain management has become the critical backbone to businesses today (Management Study Guide, 2013). The reason comes from the fact that effective market coverage and availability of products at market locations depends on the effective ness of supply chain management. Any fault in product not being availableRead MoreSupply Chain Management And Logistics Essay1877 Words   |  8 PagesSupply Chain management and logistics are an extremely important functions of an organization. In this research paper, we will be discussing an aspect of supply chain and logistics that I am interested in, how both are related and different, key activities in supply chain and logistics, and the ethics and social responsibility in both supply chain and logistics management. Logistics is a vital component of supply chain management. Both involve the planning, carrying out and management of goodsRead MoreCase Study : Greening Of Management1336 Words   |  6 PagesChapter 11: â€Å"Greening of Management† The concept of â€Å"greening of management,† describes the actions taken by managers of all levels within organizations to align their interests with environmentally-friendly interests. More specifically, it is the practice of implementing ecosystem-friendly practices in their everyday management decisions. A prime example of â€Å"green management,† can be found through the â€Å"khaki conservation† of the United Kingdom military. The UK military has utilized â€Å"recycling (practices)Read MoreSupply Chain Management of Amazon Essay1620 Words   |  7 PagesThis paper reviews the supply chain management practices of Amazon.com (AMZN) and highlights findings in the framework of a Strengths – Weaknesses – Opportunities – Threats (SWOT) framework. AMZN opened its virtual doors on the World Wide Web in July 1995 as a web based bookseller and today offers Earth’s Biggest Selection according to the company’s 2012 annual report to shareholders. AMZN’s vision statement is to be Earth’s most customer-centric company for four primary customer sets: consumersRead MoreWalmart : The Worlds Biggest Retailer1713 Words   |  7 Pagesmerchandise and content that the company purchases for resale from vendors and those offered by third-party sellers. The company through its Websites offers products under various categories, including instant videos, digital music, Appstore for Android, Amazon Cloud Drive, Kindle E-readers and books, FIRE tablets, FIRE TV, FIRE phone, books and audible, movies, music and games, and a wide variety of consumer goods. The company offers its own products as well as third-party products across various categoriesRead MoreREPORT COVER SHEET Surname: Cadena Alvarado Given name: Mario Alejandro Class:1800 Words   |  8 PagesClass: Logistics and Supply Chain Management Lecturer: Min Qiu Word count: Tittle: Report Amazon Case Study Due date 16th of May 2014 DECLARATION I am aware of university policy on Academic conduct (published on Moodle) and I declare that this assignment is my own work entirely and that suitable acknowledgement has been made for any sources of information used in preparing it. I have retained a hard copy for my records. Table of Contents Report Amazon Case Study Executive Summary †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreGizmo Case Study894 Words   |  4 PagesChapter 4: 1. Case Study: 1, 2 and 3: 1. Two possible target markets for the Gizmo could be students and business professionals. I think the marketing strategies for each would be relational marketing because with phones you typically have two-year contracts service support. However, with students it could be more of a transactional marketing, as they may not want to keep the Gizmo as long as business professionals. If there big quantity sold the prices for the Gizmo could be marked down, howeverRead MoreAmazon.Com in China - Brief Analysis on Its Supply Chain Management Strategy Proposed Recommendations4374 Words   |  18 PagesKer Qian Yin National University of Singapore Part 1: Introduction to Amazon China’s Background and its Supply Chain Amazon was founded by Jeff Bezos in 1995, started as an online bookstore with a vision to become the Earth’s biggest bookstore. It was soon diversified into selling DVDs, software, video games, electronics, and etc while the company’s positioning changed to the Internet’s No.1 retailer. In 2001, Amazon set a new goal as the Earth’s most customer centric company. Ever since, buildingRead MoreThe Business Value of Information Systems. Case Study: Amazon.Com4021 Words   |  17 PagesTHE BUSINESS VALUE OF INFORMATION SYSTEMS CASE STUDY: AMAZON Isabel Maria Arroyo Moreno Business Information Technology Module BSc Business Management with HR Greenwich School of Management, University of Plymouth (London) Submission date: 8th December 2011 Word count: 2.776 Table of Contents Executive Summary 4 The Business Value of Information Systems 5 Introduction 5 Business Value of Information 5 Business Information Management through Information Systems 6 The Value of