Amazon supply chain

amazon supply chain and scope in india

1. BY: UMANG SUTHAR (16MMCC26) VIGNESH TAMAKUVALA (16MMCC27) PARTH THAKKAR (16MMCC28)

2. 2 Introduction Amazon, Inc.   is an American based multinational electronic commerce company. Headquartered ---Seattle, Washington. Jeff Bezos founded Amazon.com, Inc. in July 5, 1994 as Cadabr a and launched it online as amazon.com In 1995. It started as an online bookstore. Amazon (Amazon) is one of the first online shopping sites launched in 1995 Since its inception, it has been consistently ranked as one of the best retail sites on the Internet and is regarded as the universal model for successful Internet retailing. 2

3. Introduction… In March 1998, Amazon was ranked among the top 20 internet sites in almost all the major market surveys. According to an analyst, "When you think of web shopping, you think of Amazon first. The Forrester Power Rankings in 2000, ranked Amazon as the best online shopping site. With 2.5 million titles, it became the “Earth’s Biggest Bookstore”.

4. Websites

5. Statics Amazon reported net income of $857 million in its most recent quarter, the third quarter in a row in which it has shown a record profit.

6. Timeline Amazon.com launch 1995 Music & video store launch 1998 Planetall , jungle.com, bookpages.co.in 1999 IMDB 3 rd party selling 2003 CDnow Partner toysRU 2004 Joyo.com Amazon publisher 2005 Booksurge Borders bookstore 2007 Shopmob Amazon auction 2008 DPreview Kindle lunch 2009 Abebooks , audible.com,bookfinder.com Homegrocer -amazon fresh 2010 Zappos, drugstore.com Carsdirect.com 2011 Bookfinder.com, woot, quidsi 2012 Kiva systems

7. These companies are belongs to amazon

8. Strategic Partners of Amazon A m azon will u s e P &G ’ s w a r e h ou s es fo r f aster a n d ec o no m ical produ c t distribu t i o n. A m azon will u s e F u ture G r o u p ’ s stro n g p r o d uct k n o w l e d g e, extensive b r and p o rtfo l io and so u rcing base. A m azon w i ll use SBI ’ s s m o o th & trust e d pay m ent solut i ons f o r s m a l l b u siness e s and end custo m ers

9. Vision of comapany

10. Key Success strategies Knowing the market and industry Focus on value-adding for customers Logistics Use of acquisitions, alliances and strategic partenrship

11. Products Books Movie, Music and Games Digital Download Kindle Computer And Office Electronics Home and garden Grocery, Health and beauty Toys, kids and baby Clothing, Shoes and jewelry Sports and outdoors Tools, Auto and industrial 13

12. Business Model Amazon-to-Buyer Sale Approach Multi level E-Commerce Customer Tracking It operates 7 websites that support their business operation globally and offers 20 million items for sale. 14

13. How deals the supply chains with fluctuating demand? Amazon.com carries high-demand title in inventory, whereas it purchases low-demand titles from distributor in response to a customer orders . Reduction in various costs like ;- Inventory cost Facility cost Transportation costs Information costs 15

14. Supply chain diagram

15. Supply chain drivers Facilities: warehousing and order-fulfillment for third-party sellers 49 fulfillment centers across globe United States – 14 spread across 14 states Canada – 2 France – 3 Germany – 7 Italy – 1 United Kingdom – 8 China – 8 Japan – 6 India -- 7

16. World-Wide warehouses and Fulfillment Centers

17.  rely primarily on national parcel couriers UPS, FedEx, Indian post, DTDC, Blue Dart etc.. Own logistics network Transportation

18. High inventory Multi-tire inventory network. Inventory

19. Cyclic view

20. Replenishment

21. Customer order

22. ships Sel l e r ’ s produ c ts the customer servi c e and d e l i v e r y customers 2. A m a z on stores from a single unit to t o a n A m a z on sch e dule a pi c kup Fulfi l lment By Amazon (FBA) 1. Se l l e rs send p rodu c ts fulfi l l m ent c e n t e r o r Sel l ers’ prod u c t s – y our en t ire inven t ory 3. Custo m ers ord e r Se l l e rs’ prod u cts from A m az on, oft e n with f a st, free de l iv e ry 4. A m a z on p a cks and 5. A m a z on ’ s c u s to m er from fu l fi l lme n t c e n t e r t o cr e ates l o y a l, ha p p y @ D a t a S our c e: Ama z on I n dia Corp o rate Web si t e

23. Aim of FBA

24. Fulfi l lment By Amazon (FBA) Sel l er I N F O RM A T I O N PR ODU CT FC I N F O RM A T I O N PR ODU CT C u stomer

25. p a ymen t s Fo c us on y o ur com i ng b a ck f o r Advan t ages of FB A - “ Y ou se l l it, we s h ip it.” Cu s t o me r s k eep b u siness m o r e Bui l d T rust Cash on deli v e r y Pay as y o u go Ama z on P r ime

26. Amazon Easy Ship 1. Custo m er ord e rs 2. Sellers sch e d ule the 3. A m a z on E a s y Ship 4. A m az on E a s y Ship from Sel l ers using P a y pi c kup a nd k e ep the de l iv e r y a s soci a te de l iv e rs the package to with A m a z o n . Sel l ers produ c t pa c k a g ed and pi c ks up t h e p a c kage the c ust o m e r a n d pi c ks get a no t if i c a t ion of t h e re a d y . from Sel le rs’ door s t e p. up C a sh on D e l iv e r y ord e r via email, Sel l er (CO D ) pa y m en t s. Cen t ra l . @ D a t a S our c e: Ama z on I n dia Corp o rate Web si t e

27. Amazon Global Sel l ing Sel l ing on Ama z on & Fulf i l l m e nt by Ama z on Expand bus i ne s s to  Cus t omers ord e r Sel l e r ’ s produ c ts on A m a z on . com the US a nd oth e r Intern a tional M a r k et  Sel le rs ca n e i th e r choose to fulfil those orders on th e ir own or use Fulfi l m ent by A m a z on (FB A ). Sh o w c a se products to  F ulfil orde r s on their o w n : sel l ers w i l l fulf i l orders mill i ons of c u stomers from I n dia when a c ustomer bu y s sell e rs’ products on A m az on . c om Increase sales by t a p p ing into  F B A : sel l ers s tore th e ir produ c ts in A m a z on ' s the US & In t ern a tion a l holid a y fulf i lment ce ntr e s, and A m az on will pi c k, p ac k, ship, s e a s o n a nd pro v i d e c ust o m e r s e rv ic e for t he se pr o du c ts. @ D a t a S ou r c e : A maz o n India Co r p or a t e Webs i t e

28. @ D a t a S our c e: MWPVL I n t ern a t i on a l FC, New FC a n d De l ivery Station of Amazon

29. I n di a : The B ig Opp o rtu n ity f o r Ama z on T ot a l E -Co mm er c e S i z e ($ Bi l l i on ) Online Shoppers of T ot a l Int e rn e t U s ers (as a %) A ve r age Spending per O nl i ne S hopper in India Inv e st m e nt Over $5 Bill i on @ D a t a S our c e: “ e - Commerce i n I n di a : A G a me Ch an ger for t he E c onomy ” , CII, Ap r i l 20 16

30. Evaluation of Amazon I n dia ’ s Supply Chain H y brid Lo g isti c s M o del • Del i ve r s s o m e o f t he p r oducts i t se l f, whi l e d e l i ve r i n g s o m e pr o d u c t s s old b y su p pliers o n it s m ar k e t place u s ing ot h er lo g is t i c s fir m s. Am a z on S C OT ( S upply C h ain Op t i m i z a t ion T echnol o gy) • “I n n o vating to get custo m ers w h at they w ant, w h en they wa n t i t .” • Usi n g m achine lear n in g , data anal y t i cs, and co m plex si m ulat i o n s. M a n a ged M a rketplace M o del • Sel l er i s f r ee t o ch o o s e se l f- f u lfi l m ent o r m ar k e t place - f u lfi l m en t . • Inf u s ed i n ve n t o r y- l e d i n a m ar k e t place b y h a ving ope r a t io n al c o n t r o l over se l l e r ent i t i es l i ke C lou d t a il ( A m azon ) .

31. The Game Plan of Amazon I n dia: W ining India • 65 % Orders (2015) are from T i e r II & III c i t i es • Eng a ged i n P i l o t Pro j e c t of Ru r al Del i v e r y Network i n T i e r III & IV c i t i e s w i t h Con n e c t India E -Co m m e rce Pvt. L t d . (of B a six Group)

32. Amazon I n dia: W ining India Am a z on C h ai C a rt • Th r e e - w h ee l e d m o b i l e carts t o n a vi g a t e i n a c i t y ’ s busine s s distric t s, s e r ve t e a, wate r , and l e m on j uice t o s m a l l b u siness o w ne r s and t e ach them ab o ut se l l i ng o n l i n e . • T e a m travel l ed 1 5 , 28 k m a c r o ss 3 1 ci t ies, ser v e d 3 7 , 20 cups o f t e a, e ngag e d with o v er 10 , 00 sel l ers (in 4 M o n ths) Am a z on T a t k a l • A stu d io -o n - wheels o f fe r ing a s u i t e o f l a u n ch ser v i c es. • Ena b l e s s m a l l b u sinesses t o get o n l i ne i n l e ss than 6 m in u t e s . Easy Ship • Del i ver pr o duc t s i n o v e r 19 , 000 pin c o d e s u s i n g A m azon T r anspo r ta t ion S e r v i c e s , B l ue Da r t, and I n dia P o s t . • Most pe n e t rated e - co m m erce platfo r m i n the co u ntr y .

33. Conclusion A large part of Amazon’s success is its ability to integrate the flow of information with the quality and speed of physical delivery Amazon’s management is committed to decreasing cost and increasing profitability Bargaining with suppliers Investing in technology to build capacity and capability Continuous process improvements

34. “Be af r aid o f Our C u st om e rs, b ec a use those a r e t he f o l ks w ho have t he m o n e y . O u r Comp e t i to r s a r e never g o ing t o send us mo n ey” …… Je f f B e zos Sup p ly Ch a in of Am a z o n Re a dy with EVE R Y THING EVE R Y WHERE EVE R Y TIME