use its inventive spirit to encourage innovatilö. AC cording to Bezos, \"what we
ID: 380627 • Letter: U
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use its inventive spirit to encourage innovatilö. AC cording to Bezos, "what we are doing is challenging and fun-we get to work in the future."20 manage- Amazon groceries. r several and San Questions ities is 1 How do Amazon.com's logistics and supply chairn s into based management activities help the company create 2 What systems did Amazon develop to improve the ment centers? What systems improved the flow of value for its customers? rvice and flow of products from suppliers to Amazon fulfill- le-3 Why will logistics and supply chain management n Amazon.com? how zon orders from the fulfillment centers to customers? play an important role in the future success ofExplanation / Answer
1. Success of Amazon Inc. or for that matter any E-Commerce company largely depends upon its ability to deliver products with the shortest lead time, safely and at the right address. In this, the major part is played by supply chain management.
Amazon Inc. therefore creates value for its customers with the aid of its robust supply chain management. Once the customer orders the product, it becomes the responsibility of the company's supply chain division to ensure the products are quickly identified, labeled, packed and dispatched to the recipient's address within the stated timeline. As an added value benefit, Amazon provides a tracking facility to the customer to monitor the movement of its ordered product online through different channels. The company even offers same day or next day delivery at some locations for its Prime consumers. All these options, amenities and value offered to consumers is through the efforts of its supply chain management activities.
2. Amazon Inc. stocks products from its suppliers in its own large warehouses or fulfillment centers from where it delivers to the consumers. The company developed forecasting software to aid the suppliers in supplying their products to the right centers where the demand is high. With the aid of forecast information available based on consumer purchase patterns, the suppliers are able to deliver the right quantity and products to the right fulfillment centers for final mile delivery to consumers.
The flow of orders from fulfillment centers to customers improved primarily due to enhanced use of telecommunication networks. The computers would keep track of all orders till such time they are packed, labeled and dispatched. The real time status information enabled handlers to accomplish dispatch task quicker. Once the dispatch was made, online tracking system kept a tab on the movement of goods to the consumers. Finally, consumers are also asked their feedback on the delivery of goods which are used to further improve the services.
3. Logistics and supply chain management will continue to play a major role in future successes of Amazon Inc. The company is present in nearly 220 countries of the world and to ensure time bound deliveries at lowest possible cost, it has to ensure adequate stockings at its fulfillment centers to be able to deliver to customers from the nearest center. The key to success would remain the ability of the company to deliver quickly and at an affordable cost to itself as well as to the consumer. The supply chain management system therefore will play a major role in its future success and expansion.
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