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“APNI DUKAAN”
SERVICE INDUSTRY – E COMMERCE
 E-commerce is the activity of buying or selling of products on online
services or over the Internet.
 First online sale: on the August 11, 1994
 A man sold a CD by the band Sting to his friend through his website
NetMarket, an American retail platform.
Types of Ecommerce Models
 1. Business to Consumer (B2C)
 2. Business to Business (B2B)
 3. Consumer to Consumer (C2C)
 4. Consumer to Business (C2B)
ORGANIZATION  AMAZON INC
 American-based multinational electronic commerce company.
 Headquartered ---Seattle, Washington.
 Founded by Jeff Bezos on July 5, 1994
 Formerly known as Cadabra.com
 Started as an online bookstore but later diversified to sell video
downloads/streaming,
 MP3 downloads/streaming,
 audiobook downloads/streaming, software,
 video games,
 electronics,
 apparel,
 furniture, food, toys, and jewellery.
ORGANIZATIONAL STRUCTURE OF
AMAZON
Individual pieces of the Amazon supply chain
strategy including:
 Warehousing
 Delivery
 Technology
 Manufacturing
AMAZON SUPPLY CHAIN: WAREHOUSING
 A big part of Amazon’s success lies in its expert warehousing strategy,
which ensures products are easily accessible from pretty much
everywhere in the world.
 All the company’s warehouses are strategically placed near big metros
and population hubs, and inventory is spread amongst them to ensure
supply can meet demand. There are even mini-warehouses in smaller
areas to ensure orders can be sent and delivered fast, no matter what is
being purchased.
 Warehouses are also optimized internally. Each with five unique
storage areas, the organization strategy allows team members and pick-
and-pack robots to pull products almost instantly and move them
toward delivery.
 Plugable Technologies, founded in September of 2009, is just one
example of a brand who was able to successfully established their goal
of “building a better device company” – largely thanks to the
implementation of FBA seller strategy & automation.
AMAZON SUPPLY CHAIN: DELIVERY
 One of the biggest differentiators between the Amazon supply
chain strategy and other online retailers’ is the plethora of
delivery options offered.
 That’s the number of ways in which Amazon can make those
deliveries happen.
 Amazon employs a whole host of strategies – from more
traditional to super high-tech – to get its products out in lightning
fast times and all over the world.
 There are drones that land in your backyard or on your roof, there
are Amazon-branded trucks and delivery vans and there are even
deliveries by bike in certain areas.
 These wide-ranging strategies allow the company to get orders
out faster, easier and more efficiently to basically everywhere in
the world – even remote and rural areas not served by traditional
options.
AMAZON SUPPLY CHAIN: TECHNOLOGY
 The Amazon supply chain management approach is to
embrace technology. The company utilizes countless
automation and robotic solutions, both to pick and pack
orders as well as stacking and storing inventory.
 These tools not only up the company’s efficiency and
delivery speeds, but they also cut down on warehouse and
staffing costs – freeing up funds for other logistics or
supply chain needs.
 The company has also embraced drones as well,
launching Amazon Prime Air.
 Though the program’s not fully operational just yet, the
drones will eventually allow for 30-minute deliveries in
some of the nation’s biggest markets.
AMAZON SUPPLY CHAIN: MANUFACTURING
 Amazon still allows third-party sellers, but the company
seems to have learned that many of those third-party
products can be made for much cheaper – and more
profitably. The retailer has taken to manufacturing its own
lower-cost products, as well as white-labeling products
from other sellers.
 Amazon offers branded lines in everything from household
products to pets to babies, and the list of labels just keeps
growing. This allows Amazon to own the whole lifecycle of
its products – from creation to marketing to storage to
shipment.
AMAZON’S CUSTOMER-CENTRIC SUPPLY
CHAIN
This model was patented as :
“Method and system for anticipatory package shipping [which]
would not only fill fulfillment centers, but it would help put
products inside delivery trucks before purchasing. Once the purchase
is confirmed, the delivery would receive an alert on the route to
send these to the final destination.”
IT INVOLVES:
 Packaging one or more items as a package for eventual shipment
to a delivery address.
 Selecting a destination geographical area to which to ship the
package.
 Sending the package to the destination geographical area without
completely specifying the delivery address at time of shipment.
 Specifying the complete delivery address for the package, while
it’s in transit.
SERVICE FACILITY LAYOUT & LOCATION
LOCATION OF AMAZON
 Global headquarters are in 14 buildings in
Seattle's South Lake Union neighborhood,
developed primarily by Vulcan, Inc. from 2008
 The first 11 buildings were acquired from Vulcan in
2012 at a cost of $1.16 billion.
 Amazon is currently building a new three-tower
complex in Seattle's Denny Triangle neighborhood
to serve as its new headquarters.
 The European headquarters are in Luxembourg's
capital, Luxembourg City.
 On November 13th, 2018 Amazon announced they
would be building their HQ2 in Long Island, NY and
Northern Virginia.
CAPACITY BUILD UP STRATEGIES
 Increase E-Commerce Search Usability
 Use High-Quality Photographs and Good Product
Descriptions
 Try Personalizing the Home Page
 Focus on Consistent and Unique Content
 Optimize Shopping Cart Functionality
 Build E-mail Lists
 Improve Your Social Media Strategy
 Create Landing Pages
 Build Advertising Strategies
 Implement User Generated Content
DEMAND AND CAPACITY MANAGEMENT AT
AMAZON
WHAT IS CAPACITY MANAGEMENT?
According to the Information Technology
Infrastructure Library (ITIL), capacity
management is defined as ‘the
discipline that ensures IT infrastructure
is provided at the right time, in the right
volume and at the right price, ensuring
at the same time, that IT is used in the
most efficient manner’.
ITIL finds that a typical capacity
management exercise consists of
application sizing
performance and workload monitoring
resource and demand forecasting and
modelling.
CONTINUOUS CAPACITY MANAGEMENT PROCESS
DETERMINING CUSTOMER NEEDS AND PRIORITIES
FOR IMPROVING SERVICE QUALITY
 The success of the Internet retailer Amazon.com
depends on its providing high-quality customer
service
 Amazon.com’s customer service operations consist
of internally and externally managed contact
centers.
 Developed an approach based on mathematical
programming that uses in
o planning capacity
o reducing the average cost of handling a customer
contact
o increasing the service level provided to customers.
 Amazon’s customer service operations CSO provides service
to customers via internally and externally managed contact
centers and features on the company Web site which allow
customers to perform various activities, including
o tracking orders and shipments
o reviewing estimated delivery dates
o cancelling unshipped items.
 Customers who cannot resolve their inquiries using the Web
site features can call or e-mail customer service
representatives (CSRs) available in the contact centers 24
hours a day.
 It created eight planning groups (PGs) dedicated to
processing the contacts in the eight categories.
 For each of the eight categories, it sets service-level
targets for both types of contacts
 Regarding staffing and service levels, Amazon established
the capacity for handling both types of contacts at the
minimum levels needed to maintain system stability.
 Optimization model
ISSUES IN SERVICES OF AMAZON
 Amazon Web Services offers a series of services for
online applications.
 The best known services are the online storage service
Amazon S3 and the remote compute or cloud computing
platform EC2.
 Amazon Web Services are developed and operated by
Amazon.com, the online retailer.
 Data sharing through Cognito is a substantial problem for
AWS(Amazon Web Services) to implement, because of
the way its security models work.
 AWS isn’t built to store massive numbers of different
IAM(Internal Access Management) policies
 AWS has fundamental structural problems to solve even
if it can figure out how to do serverless sharing.
 It has the IAM issue and a number of other issues that
makes a serverless AWS environment substantially worse
OPPORTUNITIES FOR IMPROVEMENT IN
AMAZON
 By not letting people review products too early
 Deal with misspellings
 Author alerts
 Showing the contact details
 Letting the user sign out
 Less cluttered product pages
Thank you

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Presentation on Amazon

  • 2. SERVICE INDUSTRY – E COMMERCE  E-commerce is the activity of buying or selling of products on online services or over the Internet.  First online sale: on the August 11, 1994  A man sold a CD by the band Sting to his friend through his website NetMarket, an American retail platform. Types of Ecommerce Models  1. Business to Consumer (B2C)  2. Business to Business (B2B)  3. Consumer to Consumer (C2C)  4. Consumer to Business (C2B)
  • 3. ORGANIZATION  AMAZON INC  American-based multinational electronic commerce company.  Headquartered ---Seattle, Washington.  Founded by Jeff Bezos on July 5, 1994  Formerly known as Cadabra.com  Started as an online bookstore but later diversified to sell video downloads/streaming,  MP3 downloads/streaming,  audiobook downloads/streaming, software,  video games,  electronics,  apparel,  furniture, food, toys, and jewellery.
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  • 6. Individual pieces of the Amazon supply chain strategy including:  Warehousing  Delivery  Technology  Manufacturing
  • 7. AMAZON SUPPLY CHAIN: WAREHOUSING  A big part of Amazon’s success lies in its expert warehousing strategy, which ensures products are easily accessible from pretty much everywhere in the world.  All the company’s warehouses are strategically placed near big metros and population hubs, and inventory is spread amongst them to ensure supply can meet demand. There are even mini-warehouses in smaller areas to ensure orders can be sent and delivered fast, no matter what is being purchased.  Warehouses are also optimized internally. Each with five unique storage areas, the organization strategy allows team members and pick- and-pack robots to pull products almost instantly and move them toward delivery.  Plugable Technologies, founded in September of 2009, is just one example of a brand who was able to successfully established their goal of “building a better device company” – largely thanks to the implementation of FBA seller strategy & automation.
  • 8. AMAZON SUPPLY CHAIN: DELIVERY  One of the biggest differentiators between the Amazon supply chain strategy and other online retailers’ is the plethora of delivery options offered.  That’s the number of ways in which Amazon can make those deliveries happen.  Amazon employs a whole host of strategies – from more traditional to super high-tech – to get its products out in lightning fast times and all over the world.  There are drones that land in your backyard or on your roof, there are Amazon-branded trucks and delivery vans and there are even deliveries by bike in certain areas.  These wide-ranging strategies allow the company to get orders out faster, easier and more efficiently to basically everywhere in the world – even remote and rural areas not served by traditional options.
  • 9. AMAZON SUPPLY CHAIN: TECHNOLOGY  The Amazon supply chain management approach is to embrace technology. The company utilizes countless automation and robotic solutions, both to pick and pack orders as well as stacking and storing inventory.  These tools not only up the company’s efficiency and delivery speeds, but they also cut down on warehouse and staffing costs – freeing up funds for other logistics or supply chain needs.  The company has also embraced drones as well, launching Amazon Prime Air.  Though the program’s not fully operational just yet, the drones will eventually allow for 30-minute deliveries in some of the nation’s biggest markets.
  • 10. AMAZON SUPPLY CHAIN: MANUFACTURING  Amazon still allows third-party sellers, but the company seems to have learned that many of those third-party products can be made for much cheaper – and more profitably. The retailer has taken to manufacturing its own lower-cost products, as well as white-labeling products from other sellers.  Amazon offers branded lines in everything from household products to pets to babies, and the list of labels just keeps growing. This allows Amazon to own the whole lifecycle of its products – from creation to marketing to storage to shipment.
  • 12. This model was patented as : “Method and system for anticipatory package shipping [which] would not only fill fulfillment centers, but it would help put products inside delivery trucks before purchasing. Once the purchase is confirmed, the delivery would receive an alert on the route to send these to the final destination.”
  • 13. IT INVOLVES:  Packaging one or more items as a package for eventual shipment to a delivery address.  Selecting a destination geographical area to which to ship the package.  Sending the package to the destination geographical area without completely specifying the delivery address at time of shipment.  Specifying the complete delivery address for the package, while it’s in transit.
  • 15. LOCATION OF AMAZON  Global headquarters are in 14 buildings in Seattle's South Lake Union neighborhood, developed primarily by Vulcan, Inc. from 2008  The first 11 buildings were acquired from Vulcan in 2012 at a cost of $1.16 billion.  Amazon is currently building a new three-tower complex in Seattle's Denny Triangle neighborhood to serve as its new headquarters.
  • 16.  The European headquarters are in Luxembourg's capital, Luxembourg City.  On November 13th, 2018 Amazon announced they would be building their HQ2 in Long Island, NY and Northern Virginia.
  • 17. CAPACITY BUILD UP STRATEGIES  Increase E-Commerce Search Usability  Use High-Quality Photographs and Good Product Descriptions  Try Personalizing the Home Page  Focus on Consistent and Unique Content  Optimize Shopping Cart Functionality
  • 18.  Build E-mail Lists  Improve Your Social Media Strategy  Create Landing Pages  Build Advertising Strategies  Implement User Generated Content
  • 19. DEMAND AND CAPACITY MANAGEMENT AT AMAZON
  • 20. WHAT IS CAPACITY MANAGEMENT? According to the Information Technology Infrastructure Library (ITIL), capacity management is defined as ‘the discipline that ensures IT infrastructure is provided at the right time, in the right volume and at the right price, ensuring at the same time, that IT is used in the most efficient manner’.
  • 21. ITIL finds that a typical capacity management exercise consists of application sizing performance and workload monitoring resource and demand forecasting and modelling.
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  • 24. DETERMINING CUSTOMER NEEDS AND PRIORITIES FOR IMPROVING SERVICE QUALITY  The success of the Internet retailer Amazon.com depends on its providing high-quality customer service  Amazon.com’s customer service operations consist of internally and externally managed contact centers.  Developed an approach based on mathematical programming that uses in o planning capacity o reducing the average cost of handling a customer contact o increasing the service level provided to customers.
  • 25.  Amazon’s customer service operations CSO provides service to customers via internally and externally managed contact centers and features on the company Web site which allow customers to perform various activities, including o tracking orders and shipments o reviewing estimated delivery dates o cancelling unshipped items.  Customers who cannot resolve their inquiries using the Web site features can call or e-mail customer service representatives (CSRs) available in the contact centers 24 hours a day.
  • 26.  It created eight planning groups (PGs) dedicated to processing the contacts in the eight categories.  For each of the eight categories, it sets service-level targets for both types of contacts  Regarding staffing and service levels, Amazon established the capacity for handling both types of contacts at the minimum levels needed to maintain system stability.  Optimization model
  • 27. ISSUES IN SERVICES OF AMAZON  Amazon Web Services offers a series of services for online applications.  The best known services are the online storage service Amazon S3 and the remote compute or cloud computing platform EC2.  Amazon Web Services are developed and operated by Amazon.com, the online retailer.
  • 28.  Data sharing through Cognito is a substantial problem for AWS(Amazon Web Services) to implement, because of the way its security models work.  AWS isn’t built to store massive numbers of different IAM(Internal Access Management) policies  AWS has fundamental structural problems to solve even if it can figure out how to do serverless sharing.  It has the IAM issue and a number of other issues that makes a serverless AWS environment substantially worse
  • 29. OPPORTUNITIES FOR IMPROVEMENT IN AMAZON  By not letting people review products too early  Deal with misspellings  Author alerts  Showing the contact details  Letting the user sign out  Less cluttered product pages