Amazon_and_its_Supply_Chain_Management.pptx

SCM at amazon

1. Kenneth Cain Scott Cheyney Perla Ibarra Joel Medina Maria Olvera Rosbel Rauda Supply Chain Management

2. Amazon’s Supply Chain Discuss the role supply chain management plays in the organization. How is SCM structured? What strategies and techniques are used for supply chain management activities? How does supply chain management contribute to the success of the organization ?

3. Amazon’s Background Founded in 1995 by Jeff Bezos. Started as an online bookstore, later diversifying into a broad selection of products. Amazon started in Bezo’s garage. Amazon owns over 40 subsidiaries, including Zappos, Diapers.com, Kiva Systems, Goodreads, Teachstreet , and IMDb.

4. Role of Supply Chain Management SCM is an intricate part of the organization and has reinvented the customer experience. SCM is one of the main reasons why the company has succeeded in a competitive environment. Its built in the strategic analysis of the company which is price, selection and availability. Jeff Bezos’ main focus in supply chain management is to see things from the customer’s perspective.

5. Amazon’s Supply Chain Directory

6. Amazon’s SCM Structure Amazon has built out an infrastructure. 145 warehouses around the world (84 in the United States, four in Canada, 29 in Europe, 15 in China, 10 in Japan, and seven in India. Amazon advertises its business-to-business as offering 750,000 "essential" products for business and industry. Free two-day shipping for orders of US $50 or more and a 365-day return policy. Amazon's increasing presence in this industrial space poses a real threat to incumbents. Amazon's e-commerce fulfillment services were cited as a "game changer" by several organizations. L ed to a greater demand for e-fulfillment services.

7. Amazon’s SCM Structure ( con’t ) Amazon was credited with demonstrating the power of bringing a broad range of supply chain resources under one platform. Obvious choice for new, small-scale online retailers that do not have the resources to manage fulfillment. Amazon was credited with demonstrating the power of bringing a broad Amazon is driving change in supply chain and logistics practices. F orce third party logistics to rethink their own service offerings. Amazon's huge shipment volumes and the demands it places on FedEx, UPS and USPS, limit shipping and delivery capacity. Cause delays for third party logistics seeking to use similar services during the same periods.

8. Strategies and Techniques INVENTORY MANAGEMENT   Innovative Inventory Sourcing In 2001 Amazon decided to outsource its inventory management, so they could focus on other activities. Today Amazon manages and ships its own inventory and the inventory of other companies like Samsung or and Target. This allows Amazon to ship about 10 million products compared to the 500,000 products that Walmart ships

9. Other Supply Chain Strategies Continuous Improvement Amazon uses a six sigma approach to its distribution operations. Amazon also utilises lean manufacturing and Total quality management (TQM) techniques to its own procedures Amazon conducts its business on an international scale International Amazon ships to almost 200 countries worldwide Amazon started using a global trade management solution to provide customers in more than 40 countries details on the full cost of orders, which includes country- specific duties, taxes, tariffs and also licenses,

10. Supply Chain Optimization Technologies (SCOT) When a customer places an order on Amazon.com, they promise the customer to deliver it rapidly. Supply Chain Optimization Technologies (SCOT) get customers what they need. Amazon uses advanced techniques and technologies including machine learning and data science to predict demand, forecast inventory needs and select suppliers.

11. How does SCM contribute to Amazon’s success? Supply Chain Management (SCM) is an essential element to operational efficiency. Customer satisfaction and company success. Because of the vital role SCM plays within organizations, employers seek employees with an abundance of SCM skills and knowledge. Two of the main ways SCM affects business Boosts Customer Service Improves Bottom Line

12. Conclusion Amazon had $107 billion revenue for 2015. In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States by market capitalization . Supply Chain Management plays a major part in Amazon’s success.

13. Citations Aronow , S., Burkett, M., & Nilles , K. (2015). 2015 Supply Chain Top 25: The art and science of supply chain. 19 (5), 14-24. Retrieved February 22, 2016, from http://eds.b.ebscohost.com/eds/detail/detail?sid=8fc30da8-dece-4c9d-a074-02c86917996f@sessionmgr120&vid=0&hid=117&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ==# AN=edsgcl.429409974&db=edsggr Schlegel, G. L., & Trent, R. J. ( n.d. ). Supply chain risk management: An emerging discipline . Retrieved February 22, 2016, from http://eds.b.ebscohost.com/eds/detail/detail?vid=7&sid=7af30f9d-2296-4246-865d-bfed074c867d@sessionmgr110&hid=117&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ==#AN=862001&db=nlebk Understanding Supply Chain Excellence| MSU Online. ( n.d. ). Retrieved February 22, 2016, from http://www.michiganstateuniversityonline.com/resources/supply-chain/supply-chain-excellence/#.Vti8LeYp9C1