Amazon's success stems from integrating information flow with physical delivery quality and speed. To maintain this, Amazon is committed to decreasing costs and increasing profits through supply chain management. Poor SCM can cause quality, availability, and resource issues. Running out of stock from unmonitored sales velocity or unaccounted seasons negatively impacts sales. Incorrect pricing or descriptions damage reputation. Amazon addresses these issues through supplier partnerships, optimized processes, sales monitoring, inventory alerts, and technology investments.

1. INVENTORY MANAGEMENT
Nargis Alokozay
Aihik Barua
Ankit Kundu
Roopam Bhowmick
Ashish Pawar
Ankur Mittal
Sukriti Jaiswal
Atefah Sadat Hosseini
Soumyadeep Das

2. INTRODUCTION
AMAZON IS BORN
1994
Amazon goes public
1997
A  Z
2002
• Customer Obsession rather
than competitor focus
• Passion for Invention
• Commitment to operational
excellence
• Long-term thinking
Mission
Vision
Values
Our vision is to be earth's most customer-
centric company; to build a place where
people can come to find and discover
anything they might want to buy online.
• Customer Obsession
• Ownership
• Invent and Simplify
• Learn and Be Curious
• Hire the Best
• The Highest Standards
• Think Big
• Bias for Action
• Earn Trust
• Deliver Results
Jeff Bezos and his wife MacKenzie open an online bookstore in
Seattle because of the city's reputation as a tech hub and
because Washington's small population meant that they
wouldn't have to charge sales taxes to most of their customer
base.
Amazon goes public at $18 per share, giving it a valuation of
$300 million. In its filing, the company warns investors that it
expects to report "substantial operating losses for the
foreseeable future," due to heavy
investments in technology and marketing
Marketplace, Amazon's third party seller business,
launches. New logo, with arrow running from the A to
the Z in Amazon launches, reflecting desire to sell
everything from A-Z.

3. 2012
Echo becomes widely available2015
2018
Amazon enters China2004
Amazon reaches a $1 trillion market cap
Fuelled by investor enthusiasm for rising profits,
Amazon's stock price rises enough to make the
company briefly worth $1 trillion. Share price at
$2039.51
Amazon pays $75 million to buy Joyo, the largest
online seller of books and electronics in the growing
Chinese market. But the division — renamed Amazon
China — faced stiff competition. As of 2018, it only
had 0.7% of online sales, trailing far behind Alibaba's
58.2%, according to e-Marketer.
Amazon acquires robotics company Kiva Systems
Amazon buys Kiva Systems, a Massachusetts-based maker
of warehouse robots, for $775 million. Allows Amazon to
amp up automation at its fulfilment centres, delivering
products faster and with less need for human staff. Amazon
later terminated Kiva's client relationships with retailers like
Office Depot and the Gap in order to keep the technology to
itself
After unveiling its first smart speaker in 2014 to select
customers, Amazon puts the Echo in 3,000 stores
nationwide just in time for the holiday season. The Echo is
the platform for Alexa, Amazon's virtual personal
assistant, and therefore the key to a wealth of consumer
data and purchasing decisions.

4. #1 Poor Supply Chain Management-Problems
4
1. Quality and Availability suffers
2. Purchase arrangements are threatened.
3. Resources are taxed.
Major things can cause the poor SCM -
• Suppliers Mistakes - Bullwhip effect and Improper communication can lead to relationship
breakdown through resentment which might take a long time to resolve or completely broken.
• Process Inefficiencies - If not periodically revised and optimised high danger of things would not
work optimally.

5. #1 Poor Supply Chain Management-Solutions
5

6. #2 Running Out of Stock-Problems
6
Running Out
of Stock
Sales
Velocity
Monitoring all
sales point
Factoring
in holidays
• Sales Velocity – It consists of the number of units you sell during a given time period.Not monitor
sales velocity can run Amazon into big trouble.
• Multiple sellers – listing products through other sales outlets can be a problem if Amazon doesn’t
figure out precisely how to allocate their stock across the multiple sellers
• Not factoring Holidays/seasons-Amazon Global Store ships products internationally, they need to
be fully aware of international holidays such as Chinese New Year and Ramadan are popular ones
likely to spike orders.

7. #2 Running Out of Stock-Solutions
• Decrease Sales Velocity – limit any PPC ads, marketing campaigns and use look ahead to gauge how
quickly to restock
• Charge higher for each product – This ensures to bring in more money per item while reducing
sales.
• Use Amazon Seller Central – sends e mail alerts about the inventory but inapplicable if you sell
across multiple channels.For multiple channels, use Skubana which identifies your safest sock level.
7
Running
Out of
Stock
Decrease
Sales
Velocity
Charge
Higher for
each product
Use Amazon
Seller centre

8. #3 Incorrect pricing and description-Problems
8

9. 9
#3 Incorrect pricing and description-Solutions

10. 10

11. Conclusion
• Amazon’s success is, its ability to integrate the flow of information with the quality
and speed of physical delivery.
• Amazon’s supply chain management is committed to decreasing cost and increasing
profitability.
• Supply Chain plays an important role in a modern digital commercial environment.
• Focusing on each step of the Supply chain will avoid a bad reputation, for instance,
bargaining with suppliers, control the manufacturing process and carefully monitor
the sales velocity timing.
• To improve SCM practices, it is a must to promote information sharing, planning,
and forecasting for the overall performance of the company.
• Investing in technology to build capacity and capability, the global successor being
a customer-centric company so need to go along with keeping the innovative
progression of technology using Data Mining techniques and software.
• The latest supply chain technologies to maintain their supply chain the clear market
leader.
11

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