This document presents a case study on the supply chain management practices of Amazon. It begins with an introduction to supply chain management and definitions. It then provides details on Amazon's operations, including its multi-tier inventory system and the process of how it manages orders. Key strategies are described such as analytics and private labeling. Advantages like cost savings and disadvantages like implementation costs are highlighted. Recommendations are provided such as developing Amazon's own delivery fleet. Facts about Amazon's operations like same-day delivery and drone delivery are also noted. The document concludes with references.

1. PROJECT OF ECOMMERCE

2. PRESENTATION PRESENTED BY :

3. RAUNAQ SINGH

4. INDEX:
1. INTRODUCTION OF SUPPLY CHAIN
MANAGEMENT
2. EXAMPLE OF SUPPLY CHAIN MANAGEMENT
3. INTRODUCTION OF AMAZON
4. SUPPLY CHAIN MANAGEMENT OF AMAZON
. ANALYSIS OF AMAZON SUPPLY
CHAIN MANAGEMENT PRACTICES
5. MULTI TIER INVENTORY SYSTEM
6. DIAGRAM AND PROCESS OF SUPPLY CHAIN
MANAGEMENT OF AMAZON
7. AMAZON SUPPLY CHAIN STRATEGIES
8. ADVANTAGES OF SUPPLY CHAIN
MANAGEMENT
9.DISADVANTAGES OF SUPPLY CHAIN
MANAGEMENT .

5. 10.RECOMMENDATIONS TO IMPROVE SCM
OF AMAZON
11.Amazon And Alibaba Bet The Future On
Supply Chain Management: eRetailers
Invest Big In Logistics
12.What Amazon is doing with its supply
chain could devastate the competition
13. Amazon selects infro for global logistics
business
14. Some facts about amazon
15. Conclusion
16. References

6. SUPPLY CHAIN
MANAGEMENT
OF
AMAZON

7. supply chain management
(SCM), the management of
the flow of goods and
services , involves the
movement and storage of
raw materials, of work-in-
process inventory, and of
finished goods from point of
origin to point of
consumption. Interconnected
or interlinked networks,
channels and node
businesses combine in the
provision of products and
services required by end
customers in a supply chain.
Supply-chain
management has been
defined as the "design,
planning, execution,
control, and monitoring
of supply chain activities
with the objective of
creating net value,
building a competitive
infrastructure, leveraging
worldwide logistics,
synchronizing supply
with demand and
measuring performance
globally."

8. SCM practice draws heavily
from the areas of industrial
engineering, systems
engineering, operations
management, logistics,
procurement, information
technology, and marketing and
strives for an integrated
approach. Marketing channels
play an important role in supply
chain management
The term "supply chain
management" entered the
public domain when Keith
Oliver, a consultant at Booz
Allen Hamilton (now
Strategy&), used it in an
interview for the Financial
Times in 1982. The term was
slow to take hold. It gained
currency in the mid-1990s,
when a flurry of articles and
books came out on the subject

11. Amazon.com, Inc. is an American
multinational electronics commerce company with
headquarters in Settle Washington, United States.
It is the world's largest online retailer. They started
as an online bookstore but have diversified to so
many other products like music downloads,
furniture, food and basically almost all consumer
electronics. Currently, Amazon is a major a
provider of cloud computing services. Amazon’s
has a separate retail online stores for different
countries for example the USA, UK, China, Italy,
Germany and others.
In 2015, Amazon surpassed Walmart as
the most valuable retailer in the United
States by market capitalization,[19] and
is, as of 2016 Q3, the fourth most
valuable public company
AMAZON

13. Analysis of Amazon’s
Supply Chain Management
Practices

14. To start with, Amazon’s SCM has a strategic fit with
its competitive strategy of being the retailer of choice
for its customers. The combination of multi-tier
inventory management, superlative transportation,
and highly efficient use of IT (Information
Technology), and its wide network of warehouses
are all geared towards aligning its SCM with its
competitive strategy.
The next aspect is related to its outsourcing of its
inventory management. Amazon outsources the
storage and distribution of products that are not
frequently purchased nor ordered for immediate
delivery as well as products where the costs of
storing them exceed the marginal returns on their
sales.

16. Any discussion on Amazon’s SCM is incomplete without an
analysis of its multi-tier inventory system.
The first tier is the aggregation in the distribution centers, which
ensures that Amazon holds fewer inventories and responds to
demand in a dynamic manner.
The next tier is comprised of the partner distribution centers and
the wholesalers wherein whenever an ordered product is not
available in its own distribution centers; Amazon can rely on its
partners and wholesalers to supply the customer with the
required product. Further, through the use of sophisticated and
real time IT, Amazon is able to leverage efficiencies in its
distribution.
The third tier is comprised of the networks of third party sellers,
publishers, vendors, and manufacturers who ensure that
Amazon acts as an intermediary that fulfills orders from
customers by linking them to this tier.

18. PROCESS OF SUPPLY CHAIN
MANAGEMENT IN AMAZON
Amazon’s supply chain process is simple, yet
effective.
1. It starts with the customer placing an
order.
2. The order prompts a red light to come on in
the warehouse which shows the worker the
products that have been ordered, and the bar
code is matched with the order.

19. 3. The product is then placed in crates on a
conveyor, which goes through the distribution
centre before being sorted by bar codes.
4.Crates arrive at the central point, and bar codes
of products are matched with orders and sorted
automatically into one of several thousand chutes
before going into a box.
5. The bar code then identifies the customer order,
boxes are packed taped and weighed, and they
are shipped by either US postal service or UPS for
the last mile, arriving at the consumer within 1 to 7
days.

20. Amazon Supply Chain Strategies
1. The Use of Analytics of Buying History to Market to
Individual Customers.
When you shop on Amazon, you don’t even have to surf their
site because the company is flashing similar products you have
purchased and items that you have searched for in the past.
There is no Jedi mind trick here, they are simply using analytics
of your past purchasing and browsing behavior to sway your
buying habits.
2. Brand Packaging
We all know when we receive a brown box with a smile on it that
it comes from Amazon. Brand recognition is huge and putting
your company logo on your boxes is a great way to stay on your
customers minds.

21. 3. Schedule a Free Tour of Your Facility.
Any customer can request a tour of Amazon’s
fulfillment centers to see how efficient they are. If you
want to develop a better relationship with your
customers and suppliers, invite them to your facility
and show them how you do things.
4. Putting Cool Names To Different Parts of Your
Company to Drive Value .
With trendy names like Pike Street, Pinzon, Strathwood, Kindle,
Dash, etc…Amazon has us chomping at the bit with what they are
coming out with next. Truth be and creating a PR campaign
around them comes across as told, many of these brands are
simply Amazon private labeling different products. By associating
slick brands to these services or products new and fresh and
makes customers feel they want in.

22. Advantages of Supply Chain Management
1.Supply Chain Management helps to increase savings
in labour .
2.Supply Chain Management helps to achieve better
inventory control.
3. Supply Chain Management is used to achieve
higher revenues.
4. Supply Chain Management is used for
production tracking.
5.Chances of product failure rate can be reduced
by Supply Chain Management.
6.Supply Chain Management is used to provide better
information on customer needs, tastes etc.,

23. Disadvantages of Supply Chain Management.
1.Sometimes Supply Chain Management can be
very expensive to implement.
2.Competitors can easily copy the strategy
of Supply Chain Management.
3.For better Supply Chain Management, proper
skills and experience is required to achieve
success.
4.Sometimes in Supply Chain Management
various functions may be difficult to manage.
5.In Supply Chain Management there may be
staff resistance.

24. RECOMMENDATIONS
The previous section has analyzed Amazon’s SCM in a
detailed and comprehensive manner. By focusing on
the five themes in which the analysis proceeded, we
were able to identify the areas that Amazon does well
in its SCM. However, there are components and
aspects of the SCM of Amazon where improvements
can be made. This section identifies those areas and
proposes some recommendations that Amazon can
follow and implement to make its SCM world class
and be a source of sustainable competitive
advantage.

26. First, Amazon relies to a great extent on courier companies
such as FedEx and UPS. In recent years, Amazons’ brand image
has taken a hit because of the unreliability of the last mile
connectivity or the last part of the SCM that is visible to the
end consumer.
In other words, while the other components of the SCM seem
to be efficient and complementing and supplementing each
other, the part of the SCM where the customer interacts has
been found to be deficient. Therefore, Amazon can setup its
own transportation and actualize superior last mile delivery
by creating its own fleet of delivery vehicles and personnel.
The second recommendation has to do with the aspect of
“bullwhip”. This means that Amazon can integrate its SCM better
and move from a cooperation model with its suppliers to a
coordination mode. This would entail a sharing of information
between all its partners and suppliers using the latest technology.

27. Amazon And Alibaba Bet The
Future On Supply Chain
Management: eRetailers Invest
Big In Logistics
The world’s largest retailers are planning to not only grow into the
world’s biggest logistics companies, but to completely
revolutionize the industry. Both Amazon and Alibaba have
recently made significant investments to their supply chain
capabilities and in the not distant future they will soon handle
more shipments than most specialist delivery postal and courier
companies.
In effect, these companies are building their own streamlined
delivery systems that may replace the more established
specialists.

29. What Amazon is doing with its supply
chain could devastate the competition ?
The news started with a report from Bloomberg
Business that detailed a multiyear plan to have
Amazon compete with UPS, FedEx and — most
interestingly — Alibaba. This includes leasing
planes and registering an ocean freight booking
business. The plan, according to documents
Bloomberg examined, is for "a global delivery
network that controls the flow of goods from
factories in China and India to customer
doorsteps in Atlanta, New York and London. The
project, called Dragon Boat, is proceeding."

30. The plan is massive in scope, entirely
bypassing brokers that deal with
cargo and global transit paperwork.
Amazon would then be "amassing
inventory from thousands of
merchants around the world and
then buying space on trucks, planes
and ships at reduced rates.
Merchants will be able to book cargo
space online or via mobile devices,
creating what Amazon described as a
"one click-ship for seamless
international trade and
shipping."

31. Amazon Selects Infor for Global
Logistics Business
March 03, 2017
In a major coup for its GT Nexus division, enterprise software giant
Infor says it has inked a deal with Amazon that will see the ecommerce
giant running its transportation and logistics in part on the GT Nexus
platform.
Infor CEO Charles Phillips revealed that Amazon has selected Infor GT
Nexus to assist its growth as a logistics business.
Phillips commented “Amazon selected GT Nexus for transport
management as they build out their fulfilment business this is a
strategic partnership since amazon will have a major influence on the
fulfilment and logistics of consumer and business products.”

32. What Is Amazon Doing With Infor?
A report by Management study guide about Amazon’s
supply chain management packages delivered three
recommendations in 2009 gave three
recommendations to Amazon. The first was to build
out its own logistics company. It is doing this now.
The second was to integrate its supply chain
information across its partners and suppliers. Selecting
GT Nexus as its supply chain and ecommerce platform
is one way to do this. The third was to unify its IT
systems for its supply chain. It seems that it has
selected Infor to help them do this .

33. The Role of GT Nexus:
Infor GT Nexus is also critical to this new relationship
with Amazon. It could be the glue that holds Amazon,
its partners and suppliers together in the future.
The GT Nexus platform would provide Amazon with a
single network connecting its suppliers and partners
across the globe.
It would give it visibility of its whole supply chain,
identifying where goods are and allowing it to save on
inventory costs even further.

34. SOME FACTS ABOUT

36. .Two-Day Delivery Is So 2005.
Amazon’s 2005 launch of Amazon Prime—an annual
membership that offers free two-day shipping on hundreds
of thousands of items—was a game changer. It further
established Amazon’s online retail dominance.
And, right as other online retailers began to catch up and
started offering free two-day shipping … Amazon took it a
step further and began offering one-hour deliveries with
Amazon Prime Now.
With a separate mobile app, customers can arrange to have
deliveries made during specific hours of the day. In select
markets, customers can also order groceries and even take
out from local restaurants—making Amazon a direct
competitor to delivery services such as Favor and Instacart.
Though the inventory for Prime Now is far more limited and
is only available in select cities, it has grown in size and
availability since its debut in December 2014.

37. Game of Drones
Amazon made waves back in 2013 when CEO Jeff Bezos
announced that the company is developing a drone-based
delivery system, dubbed Amazon Prime Air. Customers with
eligible orders (packages must be under five pounds) who live
within 10 miles of an Amazon fulfillment center will be able to
receive their packages via drones within 30 minutes or
less.Though many considered the 2013 announcement to be
little more than a publicity stunt, there’s no question that
Amazon considers drone-based delivery to have great
potential for its distribution system. Though Prime Air is still in
development and is currently facing some regulatory hurdles,
it is expected to make its public debut as early as 2017.

38. CONCLUSION

39. REFERENCES
.https://channels.theinnovationenter
prise.com/articles/amazon-s-supply-
chain-process
.www.computerworld.com/.../amazons-
supply-chain-move-could-prove-
devastating.ht
.www.supplychain247.com/.../a_deep_di
ve_into_amazons_global_shipping_fulfill
me
.https://www.cips.org/supply-
management/.../the-secrets-behind-
amazons-success/
. www.slideshare.net/.../case-study-on-
amazoncoms-supply-chain-
management-practice.
.https://www.managementstudygui
de.com/amazon-supply-chain-
management-practice..
.http://www.slideshare.net/kurtu
luserek/amazoncom-companies-
and-facts

40. THANK YOU