2. "In the physical world it's the old saw: location, location, location. The three most important things for us are technology, technology, technology." - Jeff Bezos, CEO, Amazon.com
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4. Consistently ranked as one of the best retail sites on the Internet.
5. According to an analyst, "When you think of web shopping, you think of Amazon first."
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7. The company is in coalition with other retailers and offer various new, and used items in categories.
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10. Work in process(semi finished items that are stored temporarily)
31. Deciding the Strategy Inventory goals: right product in the right quantity to the right place at the right time. Reduce redundant inventory Blockage of working capital. Low inventory turnover. Cost of holding > cost of outsourcing Thus they OUTSOURCED
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33. Outside distributors at Amazon for three kinds of products: cell phones, computers and books, excluding those on best-seller lists
37. Disadvantages of Drop-Shipment Model The variable cost incurred by multiple delivery attempts and reverse logistics. Multiple delivery attempts cost the company about 20-30% of the total cost for home deliveries. 35% of orders placed at Amazon belonged to different product categories.
39. Steps taken for improvement Made improvements in its distribution centre which reduced 12% of the wrong inventory to 4% by 2002. Tightened its operation to ensure that it did not miss any customer orders.
40. Success Story Till 2001 Amazon was in deficit of US$2.86 billion. Earned its first ever profit of $5 million in the 4th quarter of 2001. Year 2002 recorded sales of $3.93 billion which was 26% higher than sales of 2001. Cost of operating warehouses reduced from 20% to 10% where as the capacity increased 3 times. Inventory turnover was 20 times as compared to other retailers having 15 times.
