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    Analysis of Supply Chain Network of Amazon Inc

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    Amazon operates a massive global supply chain network to fulfill orders for its e-commerce marketplace. They have fulfillment centers, warehouses, distribution centers and sortation centers located around the world. Amazon uses two main fulfillment strategies - Fulfillment by Amazon (FBA) where Amazon warehouses and ships items, and Fulfillment by Merchant (FBM) where merchants handle their own fulfillment. Amazon is investing heavily in automation and logistics technology like robots in warehouses and delivery drones to optimize its supply chain operations and reduce costs.

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    Analysis of Supply Chain Network of Amazon Inc

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    Amazon operates a massive global supply chain network to fulfill orders for its e-commerce marketplace. They have fulfillment centers, warehouses, distribution centers and sortation centers located around the world. Amazon uses two main fulfillment strategies - Fulfillment by Amazon (FBA) where Amazon warehouses and ships items, and Fulfillment by Merchant (FBM) where merchants handle their own fulfillment. Amazon is investing heavily in automation and logistics technology like robots in warehouses and delivery drones to optimize its supply chain operations and reduce costs.

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    Amazon operates a massive global supply chain network to fulfill orders for its e-commerce marketplace. They have fulfillment centers, warehouses, distribution centers and sortation centers located around the world. Amazon uses two main fulfillment strategies - Fulfillment by Amazon (FBA) where Amazon warehouses and ships items, and Fulfillment by Merchant (FBM) where merchants handle their own fulfillment. Amazon is investing heavily in automation and logistics technology like robots in warehouses and delivery drones to optimize its supply chain operations and reduce costs.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    127 views9 pages

    Analysis of Supply Chain Network of Amazon Inc

    Uploaded by

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    Amazon operates a massive global supply chain network to fulfill orders for its e-commerce marketplace. They have fulfillment centers, warehouses, distribution centers and sortation centers located around the world. Amazon uses two main fulfillment strategies - Fulfillment by Amazon (FBA) where Amazon warehouses and ships items, and Fulfillment by Merchant (FBM) where merchants handle their own fulfillment. Amazon is investing heavily in automation and logistics technology like robots in warehouses and delivery drones to optimize its supply chain operations and reduce costs.

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    Analysis of Supply

    Chain Network of
    Amazon Inc.
    What is Amazon
    Supply Chain

    • Amazon’s Mission: To be Earth’s most


    consumer centric company
    • One of world’s largest supply chain with state-
    of-the-art operations
    • Coupled with automation and Technological
    advancements
    • Combination of warehousing, inventory
    management, pricing and delivery time
    • Goal: Maximizing the level of responsiveness
    while minimizing the shipping cost
    Their 2 main
    Principles
    • Amazon works on two main
    strategy to move the
    products listed on website or
    offline stores,
    • Fulfilment by Amazon
    (FBA)
    • Fulfilment by Merchant
    (FBM)
    G L O B A L S U P P LY
    CHAIN OF AMAZON

    • Amazon operates in 11 online marketplace


    worldwide.

    • Amazon dominates in North America, Europe


    and Asia.

    • When you register to sell in one of these Amazon


    marketplaces, sellers gain immediate access to
    customers who know and trust the Amazon
    buying experience

    • Amazon gives recognition to the sellers without


    having any presence in other continents.
    Logistics of Amazon

    Logistics in Amazon includes everything from


    fulfilment centers , warehouses , distribution
    centers , sortation centers , whole foods retail ,
    transit hubs , 3rd party logistics operators (such
    as fedex etc) and in house logistics such as fleet
    of prime vans , drones and many more.
    Warehouses of
    Amazon
    • Warehouses are generally distributed
    around their regions of operation.
    • They are usually situated just outside
    city limits due to space constraints
    • Amazon invests heavily in inventory
    & warehouse management
    • Automation is an area of key focus for
    Amazon warehouses- robots facilitated
    by the acquisition of Kiva Systems in
    2012.
    Transportation -Delivery Options provided by
    Amazon
    • Amazon currently depends mostly on 3PL operators and subcontracts most of their delivery related operations out.
    • They aim to provide at least 50% of the deliveries themselves in the coming years.
    • They have invested in over 30000 trucks worldwide to improve their same day delivery capabilities. These trucks are
    usually placed near distribution centers.
    • Their approach of reducing dependence on 3PL is against common wisdom but their aim is to improve their same
    day delivery capability.
    • They are trying to create an integrated business model where all aspects are handled internally, thereby reducing
    overall costs.
    • They are also improving their global delivery capabilities by acquiring 66 cargo airliners (Amazon Air)
    • They are also experimenting and increasing investment in drone delivery capabilities in urban areas. Reducing the
    costs of labour associated with delivery, thereby reducing costs for customers.
    How the
    supply chain
    works

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