Amazon By: Brittany Sands, Taylor Gardner, Thomas Juran, Chad Mack, Matteo S What is Amazon? S Currently, Amazon is the global leader in e-commerce. Their company is based in Seattle, Washington. S Incorporated in 1994, opened in July 1995 S Started off to try to be the fastest and most effecient way to buy books online. S They sell: Books, CDs, videos, toys, games, electronics, kitchenware, computers, free electronic greeting cards, and auctions. S They operate international sites in Canada, China, France, Germany, Italy, Japan, Spain and the United Kingdom. What is Amazon? S Inside Amazon: http://www.youtube.com/watch?v=MAsqYnY91tMGlobal online retailer Q&A S How do Amazon.com’s logistics and supply chain management activities help the company create value for its customers? Amazon.com’s logistics and supply chain management activities help the company create value for its customers by offering a cost effective and organized way of getting the end product to its customers on time and efficiently. Amazon does this by maintaining 7 distribution channels with more than 2.7 million products and stocking them regularly unlike its competitors. As well Amazon is bringing its suppliers the same kind of interactive relationship that their customers receive. For example, Amazon now is using software to forecast purchasing patterns by area more accurately, which will allow its suppliers to be better aware of delivery dates and volumes. With this software it will significantly reduce any inventory from going to the wrong location which would cause lost time and many delays. Once the order is placed online in the system, the computer makes sure that all items purchased are in the box before it is taped and labelled. The package is then sent to trucks and postal hubs to continue on with the delivery to the customer. With all this Amazon.com has put into place to ensure the product gets to its customer, customers will be guaranteed their purchases which they value most. Q&A S What systems did Amazon develop to improve the flow of products from suppliers to Amazon distribution centers? The systems that Amazon developed to improve the flow of products from suppliers to Amazon’s distribution centers are different from their competitors. Amazon stocks all their products from the suppliers in their several large distribution centres. Amazon is currently using software that shows the different purchasing patterns in each region. With this information, they are able to give their suppliers better information about the delivery dates and volumes, which also helps to improve their interaction with the suppliers. They can estimate which distribution center the kind of product should go to as well as give the suppliers a rough date in which their product should be sold. The development of this software has improved from twelve percent to now four percent of the inventory that is coming to the distribution centers from going to the wrong one. Q&A S What systems improved the flow of orders from the distribution centers to customers? The main system that has improved the flow of orders for the distribution centers to customers for the company, Amazon, is the use of telecommunication networks. The company has worked on this system, which has the speed to allow them to pass information back and forth enabling the company to do real-time work. With this particular system, once the order is in place and recorded in the system, computers ensure all products are included in the box before it is taped and labeled for distribution. The process then continues with a network of trucks and postal hubs being set up, which conclude the delivery process by successfully distributing the packages to it’s customers. Although reports suggest this system and the software being used by Amazon are operating at 40 percent of it’s capacity, it has helped improved the distribution of the online retailer company’s products to it’s customers leaving them more satisfied than ever. As the system keeps improving and the failure rate of it’s deliveries keep going down, they will keep proving to be more efficient than ever. Q&A S Why will logistics and supply chain management play an important role in the future success of Amazon.com? Logistics and supply chain management will play an important role in the future success of Amazon because of the fact that the online retailer services customers in over 220 countries across the globe. With such a tremendous market reach, Amazon must be able to deliver these products to their consumers on time and cost friendly in order for amazon to be successful. High transport and shipping costs can eat away at your overall profit if the supply chain and distribution channels are not efficient. Once an order is received Amazon must have the product or products shipped to its distribution centre where it is then redistributed to the customer’s home address. With such high levels of inventory Amazon must manage the flow from supplier to customer in order to operate the distribution centres at a higher capacity (currently operating at 40% capacity). With more efficient logistics and supply chain management, Amazon can increase overall net income and grow a successful future for “Amazon.com”. Thank- you Questions?