Changing Supply Chain Management of Amazon

Running head: CHANGING SUPPLY CHAIN MANAGEMENT IN AMAZON
Changing Supply Chain Management of Amazon
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1CHANGING SUPPLY CHAIN MANAGEMENT IN AMAZON
Executive Summary
Amazon began its business operations as an online book retailer. With the growing years, the
company has attained growth in its supply chain management as an “everything store”. The
objective of the report was to analyse the ways in which the supply chain management of
Amazon is changing over years through becoming an online retailer and attaining competitive
edge in the increased globalization of world trade. It has been revealed that with an increased
volume of offerings that is dealt by Amazon, it can be observed that the e-commerce site is
dealing with high volume situations that facilitate the company to ensure low-cost production.
Moreover, Amazon is observed to implement long term implications in the Australian retail
industry for the reason that interactive product visualization technology of Amazon is anticipated
to bring the tangible in-store experience of Australia.

2CHANGING SUPPLY CHAIN MANAGEMENT IN AMAZON
Table of Contents
1. Introduction..................................................................................................................................3
2. Amazon’s Growth as Online Retailer..........................................................................................3
3. Amazon’s Operation Management based on Increased Globalization of World Trade..............4
4. Effectiveness of Amazon’s E-commerce in Replacing In-person Shopping Experience............7
5. Long Term Implications of Increased Presence of Amazon within Australian Retail Industry..9
6. Conclusion.................................................................................................................................10
References......................................................................................................................................11

3CHANGING SUPPLY CHAIN MANAGEMENT IN AMAZON
1. Introduction
Amazon is positioned as one of the successful e-commerce organization that offers a
successful marketplace for the sellers, consumers along with content creators. The intensity of
Amazon Company’s supply chain management innovations has been highly effective with its
incredible rate of change that makes it difficult for its competitors to remain in tough rivalry with
the company (Dennis, Cheong and Sun 2017). The objective of the report is to analyse the ways
in which the supply chain management of Amazon is changing over years through becoming an
online retailer and attaining competitive edge in the increased globalization of world trade.
Moreover, it will also analyse the long term implications of increased presence of Amazon
within the Australian retail industry.
2. Amazon’s Growth as Online Retailer
After Amazon established its business in the year 2004, its yearly revenue was $ 7 billion
that reached to $ 136 billion the year 2017. Such tremendous growth has positioned it s the
fastest growth e-commerce company that attained $ 100 billion as sales revenue. From Amazon
Company’s establishment the company has indicated growth of over 20% each year that is
anticipated to be $ 1 trillion yearly by the end 2027 (Diehl and Bishop 2017). One of the major
reasons that resulted in drastic transformation of Amazon in Australian retail industry form being
a simple bookseller to highly dominate force within the industry by means of its highly
innovative and efficient supply chain. The e-commerce organizations; constant effort in offering
products to consumers in a rapid manner are resulting in increased pressure for other established
online retailers within global retail industry along with transforming the operations of supply
chain management. The combination of manufacturing for supporting its retail operations have