Amazon Europe, established in 1998 through the acquisition of online booksellers, has expanded its product offerings and fulfillment operations significantly. The focus on operational excellence and customer expectations has led to the development of an European distribution network (EDN) to enhance product selection and customer service. Recommendations include implementing the EDN and improving infrastructure to support this system while comparing it to a leading Indonesian e-commerce company's strategic vision and mission.

1. Product & Channel Management
Griffiano - Yudha
Gandos– Fitria
Irena – Andhika

2. Company Background
Establish in the fall of 1998 through the acquisitions
of two online booksellers, Bookpages.co.uk in
Britain and Telebuch.de in Germany, Amazon
Europe had developed into three strong,
independently run, country-based organizations in
the UK, Germany, and France.
Amazon.com offers a wide range of products, a list
of which includes: books, CDs, computer games,
DVDs, electronics, games, home improvement
items, jewelry, software, toys and videos.

3. Timeline
1995
Use the internet to
transform book buying
into the fastest ,
easiest and most
enjoyable shopping
experience possible.
1995-1996
Distribution center
capacity grew from
50.000 to 285.000
square feet, including a
70% expansion of the
Seattle DC, and the
launch of a second DC
in Delaware. Increased
the number of the
number of titles held in
its DCs to over
200.000.
1998
Expanded its product
lines (Music, Video,
and DVD Store).
Establishing

4. 1999
Amazon offered its
customer a range of
merchandise that had
very different
characteristics
(barbeque grills, toys).
2000-2002
Amazon focus on
operational excellence
and lower cost.
Timeline
Building additional
fulfillment infrastructure

5. Key Factor Customer Expectation
• Better Selection
• More Convenience
• Better Service

6. Key Factor Customer Expectation
• 24 hour-a-day customer center
• Free Shipping
• New Processes on
new payment method
• Use Electronic Data Intercharge
• International Order

7. Key Factor Customer Expectation
Costumer
One stop shopping
Reliabilty and Credibility
Guarantees
Merchants
Brand Recognation
Access to larger
costumer base
Sharing Amazon’s
e-com infrastructure
Guarantee and credibilty
Access to Amazon’s
customer database
Amazon
Added revenue using
subscription model
Costumer
Intellegence

8. Tom Taylor
• Former of Manufacturing Plant Manager from General
Motors
• Join Amazon since 2000, first assignment was to manage
the two oldest DC (Seattle and Delaware)
• In June 2002, Taylor was promoted to Director of
European Supply Chain Operations
• Invented European Distribution Network (EDN)

9. Amazon.com Expansion
amazon.co.uk
amazon.com amazon.fr
amazon.de
amazon.ca
amazon.jp

10. Amazon.com Expansion
amazon.co.uk
amazon.fr
amazon.de
European Distribution Network
(EDN)

11. European Distribution Network (EDN)
Opportunity
• Significantly expand product selection
• Global sourcing from lowest cost vendors and allow
inventory planning at the global network level
• Reduce the risk of relying on single DC to serve large base
of customer
• Improve customer experience
• Possibility to expand into other European countries

12. European Distribution Network (EDN)
Cases
• Should Amazon Europe build an EDN where the location
of inventory would be strategically location (UK,
Germany, or France?
• Should different sites be linked into a single European
Distribution Center?
• Keep the DC’s to fulfill customer’s order for other country
or make only 2 DC’s for north and south european
customers?
• What should the function of DC’s in the EDN?

13. Conceptual Approach
Integrating Multichannel
Marketing System
B2B E-commerce
Wholesaling

14. Problem
• Supply Chain Type
e.g. a purchase order had been placed to a
wholesaler/publisher but the order had not been
• DC Type
• Customer Type
received by Amazon.
e.g. the item had been received but not yet
recorded in stock.
e.g. the customer had placed on order using a
check as payment method but Amazon had not
received the check.

15. recommendation
• Implemented EDN
• Keep current DC as
distribution channel
• Improvement on IT
infrastructure to support the
EDN System
• Allocate the employee from
DC to EDN DC to fulfill the
strategic management

16. Compare with Indonesian Company

17. Overview
One of pioneer Indonesia E-commerce website that sells various goods
such as computer, peripheral, gadget, photography, etc.
Vision
"Menjadi sebuah perusahaan kelas dunia dengan semangat pemanfaatan
informasi teknologi, dan menjadi kebanggaan bangsa."
Misi:
"Menjadi webstore nomor satu di Indonesia yang menyediakan
kelengkapan dan kemudahan belanja, serta memperhatikan dan
memberikan pengalaman belanja yang berkesan kepada pelanggan,
melalui nilai-nilai delapan dimensi pengalaman."