Amazon uses a cost leadership strategy through efficient management of its vast supply chain network of warehouses and diversified fleet. It also differentiates itself through unique product features and a strong brand image. Key elements of Amazon's supply chain include its warehouse and distribution network, fleet of vehicles, and balance of human and automated labor.

2. SMART OBJECTIVES OF AMAZON

8. 3 Key Elements of
Amazon's Supply
Chain Strategy :-
 A vast warehouse and distribution network
 A diversified fleet
 The Unison of Humans and automation

9. Amazon's Generic strategy (Porter's model) :-
• How Amazon uses a cost leadership strategy?
 The primary objective of using this strategy is to preserve the
market leadership position through efficient value chain
management.
 Focuses on affordability and easy accessibility

10. • How Amazon uses differentiation strategy?
Expand the customer base by emphasizing over the unique product
features.
positions its product offerings in a way to stand out and be different
from the available alternatives.
The unique and distinctive brand logo has established a strong brand
image in consumers’ mind

11. Value Chain Analysis of Amazon :-

16. What Is EOQ?
• Economic order quantity is one of the techniques of
inventory control which minimizes total holding and
ordering costs for the year.
• The Economic order quantity is the technique which
solves the problem of material managing.

19. Example
The company sells 1,000 units each year. It costs the company
$5 per year to hold a single unit in inventory, and the fixed cost
to place an order is $2.
• After substituting the values the EOQ is 28.3
• The economic order quantity is 28.

20. Lead Time
• Lead time is the amount of time that passes from the
start of process until its conclusion.
• Reducing lead time can improve productivity increase
output and revenue.

21. What is ERP?
• ERP stands for enterprise resource planning
• It is a business process management software that
manages and integrates a company financials, supply
chain, operations, commerce, reporting,
manufacturing and human resource activities.
• An ERP gives company a single place to store, view,
manage and interpret data.

22. Major reasons for adapting ERP
• Integrate financial information
• Integrate customer order information
• Speed up operational process
• Reduce inventory

23. Frame work of ERP

24. Benefits of ERP
• Provides strategic advantage over the competitors
• Creates a common data base
• Integrates supply chain
• Reduces time
• Improves Customer satisfaction

25. Disadvantages of ERP
• It is very expensive
• It is complex and requires highly efficient and
experienced staff
• May be difficult to implement