SUCCESS FACTORS OF AMAZON’S

SUPPLY CHAIN MANAGEMENT

1. PRIME MEMBERSHIP:- THE PRIME MEMBERSHIP OPTION IS PIVITOL TO THE SCCESS
OF AMAZON 2 DAY AND 2 HOUR DELIVERY OPTIONS MADE AMAZON STAND OUT OF
COMPETITION AND CLAIM WINNING SPOT IN THE E-COMMERCE WORLD.
2. WAREHOUSES AND FULFILMENT CENTERS:- AMAZON’S WAREHOUSES ARE
NOW STARTED TO BE IN CLOSER PROXIMITY TO THE MAIN CITIES.THIS MAKES SURE TIME
TAKEN FOR DELIEVRY IS REDUCED. FULFILMENT CENTERS ARE ALSO SUPER-EFFICIENT AND
EQUIPPED WITH ROBOTS.
3. STRATEGIC TRANSPORTATION:- STRATEGICALLY USING TRANSPORTATION THAT
IS SUITED TO THE LEVEL OF DEMAND AND WITH THE HELP OF MOST CONVENIENT WAY TO
REACH THE PRODUCTS TO ITS CUSTOMER IS ONE OF THE REASON BEHIND AMAZON’S
SUCCESS.
CHALLENGES OF AMAZON’S SUPPLY
CHAIN
1. SHIPPING COST :- WHILE PRIME SERVICE IS GREAT FOR CUSTOMERS, IT WORKS
DIFFRENTLY FOR SELLERS. FBA SELLER’S PRODUCTS QUALIFY FOR FREE SHIPPING BUT THEY
HAVE TO BEAR THE SHIPPING COST OF THEIR PRODUCTS.
2. DELAYS IN INVENTORY LOGGING :-THERE IS ISSUES OF DELAYS IN TIME TAKEN
FOR AMAZON TO LOG ALL THE INVENTORY INTO THEIR SYSTEM.THIS IN TURN CAUSES DELAYS
IN THE PACKAGES BEING READY TO DELIVER.
3. INCORRECT DEMAND FORECAST :-THERE ARE TIMES WHEN DEMAND SOME
PRODUCTS IS INCORRECTLY FORECASTED BY AMAZON’S SUPPLY CHAIN ANALYTICS AND THIS
AFFECTS CONSUMERS SATISFACTION
CONCLUSION
• AMAZON HAS DESIGNED A SUPPLY CHAIN IN WHICH IT CAN OPTIMIZE
ANY PART OF IT.
• IT HAS INTRODUCED HIGH-LEVEL AUTOMATION USING ROBOTS TO
DECREASE HUMAN EMPLOYMENT.
• THIS HELPS THEM DECREASE THE COST. FROM WAREHOUSE TO
DELIVERY IT HAS DEPLOYED SEVERAL ROBOTS TO ARRANGE PACK AND
DELIVER THE PRODUCT TO THE CUSTOMER'S HOUSE.
• THE SUPPLY CHAIN AND LOGISTICS OF AMAZON IS ONE UNIQUE
ENTITY IN THE WHOLE WORLD.