8. 3 Key Elements of
Amazon's Supply
Chain Strategy :-
A vast warehouse and distribution network
A diversified fleet
The Unison of Humans and automation
9. Amazon's Generic strategy (Porter's model) :-
• How Amazon uses a cost leadership strategy?
The primary objective of using this strategy is to preserve the
market leadership position through efficient value chain
management.
Focuses on affordability and easy accessibility
10. • How Amazon uses differentiation strategy?
Expand the customer base by emphasizing over the unique product
features.
positions its product offerings in a way to stand out and be different
from the available alternatives.
The unique and distinctive brand logo has established a strong brand
image in consumers’ mind
16. What Is EOQ?
• Economic order quantity is one of the techniques of
inventory control which minimizes total holding and
ordering costs for the year.
• The Economic order quantity is the technique which
solves the problem of material managing.
17.
18.
19. Example
The company sells 1,000 units each year. It costs the company
$5 per year to hold a single unit in inventory, and the fixed cost
to place an order is $2.
• After substituting the values the EOQ is 28.3
• The economic order quantity is 28.
20. Lead Time
• Lead time is the amount of time that passes from the
start of process until its conclusion.
• Reducing lead time can improve productivity increase
output and revenue.
21. What is ERP?
• ERP stands for enterprise resource planning
• It is a business process management software that
manages and integrates a company financials, supply
chain, operations, commerce, reporting,
manufacturing and human resource activities.
• An ERP gives company a single place to store, view,
manage and interpret data.
22. Major reasons for adapting ERP
• Integrate financial information
• Integrate customer order information
• Speed up operational process
• Reduce inventory
24. Benefits of ERP
• Provides strategic advantage over the competitors
• Creates a common data base
• Integrates supply chain
• Reduces time
• Improves Customer satisfaction
25. Disadvantages of ERP
• It is very expensive
• It is complex and requires highly efficient and
experienced staff
• May be difficult to implement
