Amazon supply network review

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Amazon supply network review

  1. 1. Make the change• http://www.youtube.com/watch?v=LbcwsSZCKuI
  2. 2. Company ProfileUS-based multinational e-commerce company.World’s largest online retailerFounded by Jeff Bezos in 1994 and launchedonline In 1995 as amazon.comAmazon.com started as anonline bookstore, but soon diversified, sellingDVDs, CDs, MP3 downloads, software, videogames, electronics, apparel, furniture, foodThe company also produces consumerelectronics and is a major provider of cloudcomputing servicesHas acquired companies likeIMDB, zappos, pets.com, shelfari, woot etcAmazon web services drives companies likenetflix, dropbox, foursquare, zynga, reddit, andyelp
  3. 3. Growth12 60 Gross Income ($bn) 9.64 50 Revenue ($ bn) 48.08108 40 6.99 34.26 5.1 30 24.51 3.93 19.174 3.08 20 14.842 100 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
  4. 4. Growth Gartner Top 10 Supply ChainRanking 2010 2011 2012 1 Apple Apple Apple 2 Procter & Gamble Dell Amazon.com 3 Cisco Systems Procter & Gamble McDonalds 4 Wal-Mart Stores Research In Motion (RIM) Dell 5 Dell Amazon.com Procter & Gamble 6 PepsiCo Cisco Systems The Coca-Cola Company 7 Samsung Electronics Wal-Mart Stores Intel 8 IBM McDonalds Cisco Systems 9 Research In Motion PepsiCo Wal-Mart Stores 10 Amazon.com Samsung Electronics Unilever Moved from Rank 10 to 2 in 3 yrs It operates 7 websites that support their business operation globally and offers 20 million items for sale
  5. 5. Customer Centric
  6. 6. Replenishment StrategyReflects an understanding of customers’ needs – more variety AND lower costOffer wide range of products through the use of wholesale suppliers and independentproducersTo provide a two-day delivery time limit on most ordersEDI enabled customer tracking of shipments
  7. 7. Supply Network
  8. 8. StrengthsCustomers can choose how their products are delivered • USPS, UPS, Fed-EX, DHL for last mile delivery • Trucking for long lead deliveries Practices “bulk packaging” - Products ordered by customers at the same locationare delivered at the same timeEnsures truck loads (MOQs) are metKeeps inventory at a minimum • Stocks only bestsellers • Warehouses in tax free statesDistribution centers carry only a few product categories • Slow moving products managed by 3rd party sellers • Decrease inventory obsolescenceVendor Practices • Doesn’t source more than 10% of inventory from a single vendor • Still expects and gets significant discounts • No long term contracts
  9. 9. Thank You

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