ALCAIDE, RENELYN S.

BSIE-41M1

AMAZON

A supply chain is a network of individuals and companies who are involved

in creating a product and delivering it to the customers. In this traditional Supply
Chain, the challenges for a store is deciding what to place on shelves because they
have more than 100,000 different items. Due to seasonal event, the demand of
the customer changes and in order to clear out inventory and to make room for
new product for the next season, some retailers used strategy like price
discounts, sales and mark downs. The goal of a supply chain is to improve
efficiency by coordinating the efforts of the various entities in the supply chain.
 The term Amazon supply chain essentially refers to Amazon’s entire
process from product warehousing to inventory management, pricing, delivery,
and more. Amazon has optimized each of these elements to ensure that
everything is working smoothly and efficiently. In the video that I’ve watched,
year by year, the distribution of the Amazon’s network started, they build many
warehouses, in Seattle and Delaware and also in Europe they called it fullfilment
centers. Amazon also offers two fullfilment to options to sellers, which are FBA
and FBM. With this option, Amazon will take care of all the logistics and customer
support then the third-part sellers will just have to send bulk products to
Amazon’s fulfillment centers for them to pick, pack and ship. Regardless of which
industry they venture into next, Amazon’s consumer centric approach,
organization, unique supply chain strategy, and technological innovations can
only mean that they’re only going to continue to shake up the industry.