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Amazon Supply Chain Network
30
Suggestions for Improvement
Challenge of Shipping Costs
Summary
How are they dealing with their challenges?
- High volume means high costs
- Small orders
- Multiple products from multiple suppliers
- Amazon has a massive supply chain globally
- Consider their future changes in transitory inventory
- Project Dragon Boat set to revolutionize supply chain
- Project Dragon Boat
- Inventory management, transportation acquisitions, and tax negotiations
Supply Chain
Challenges
- Bypassing middle man in inventory
- Reduction of Suppliers
- Gradually begin acquiring transportation tools (airplanes, boats, drones) and stop renting long-term
- Have more controlled inventory as a result
Why is Inventory a Challenge?
- Tax free negotiation with different countries
- Inventory Management
- Amazon's orders are more complex than any other
- Shipping Costs
Overview Con't
- Keeping track of all suppliers and customers
- Speed of the supply chain
- Prime, DC's and Boeing
- Taking on UPS and FedEx
- They handle more inventory than any other company
Questions?
Overview Con't
- Warehouse location
- Logistics heavy
- Simple order process
- Storage strategy
Company Overview
1995: Amazon.com debuts on the web
Supply Chain Overview
1997: The company goes public; Amazon.com
becomes the first internet retailer to secure
one million customers
Amazon Company Culture
- Customer Obsession
- Innovation
- Ownership
- High Hiring Bar
2003-2004: Amazon.com expands into selling
jewelry and shoes
- Industry Week's #1 Supply Chain
- Global network
- Growing Supply Chain
http://www.industryweek.com/supply-chain/top-25-supply-chains-2015#slide-0-field_images-167391
2011-2013: Kindle Fire is lunched and drone
delivery plan is unveiled
2015: Amazon.com celebrates 20th
birthday with market capitalization
standing in excess of $245 billion
dollars
"One of the largest online shopping
websites in the world"
Agenda:
- Overview of the firm
- Overview of the firm's supply chain operations
- The supply chain challenges the firm is facing
- Coping with the challenges
- Our suggestions
Amazon Supply Chain Network
The Breitlingers
Stefano Evangelista, Charles Robertson, Kevin Ackerman