Supply Chain Management Strategies of Amazon, Samsung and Apple

This article discusses the supply chain management strategies of Amazon, Samsung and Apple. It covers Amazon's partnership models, rapid growth and challenges in meeting order fulfilment rates. It also explores Samsung and Apple's effective supply chain management, including their approach to inventory management and customer demand. The article concludes with strategic implications for businesses looking to improve their supply chain management.

Supply chain management: Amazon

Contents
1. INTRODUCTION..............................................................................................................3
2. PARTNERSHIP FOR SUPPLY CHAIN MANAGMENT................................................3
3. STAKEHOLDER...............................................................................................................3
3.1 Owners (shareholders).....................................................................................................3
4. ACTIVITIES THAT ARE IMPORTANT TO THE SUPPLY CHAIN.............................4
4.1 Rapid Growth...................................................................................................................4
4.2 Subcontracting Account Management and logistics........................................................4
4.3 Drones: Future Supply Chain Management Strategies....................................................4
5. Two Supply Chain brands...................................................................................................5
5.1 Samsung supply chain management................................................................................5
5.2 Apple supply chain management.....................................................................................5
5.1 Samsung and Apple order completion:............................................................................5
5.2 Increasing in the preferences of the products and the services........................................5
6. Partnership models..............................................................................................................6
6.1 Acquisition.......................................................................................................................6
6.2 Minority interest...............................................................................................................6
7. STRATEGIC IMPLICATION...........................................................................................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8

1. INTRODUCTION
Amazon was created by Jeff Bezos in 1994. It is the worldwide largest online e-commerce
portal which has been known for its quality services, market capitalization and its revenues.
Amazon was first selling the books and after that, the it was expanded to sell electronics
product, online books, home appliances, grocery’s, wearing products, sports products,
furniture, toys etc (Stone, 2013).
The revolution came when Amazon changed the approaches of the retail through supply
chain management strategies and through distribution of advanced technologies. In the year
2004, Amazon was started, its yearly revenue was under $7 billion. In 2016, the revenue was
reached to $136 billion. It took only 20 years by Amazon to achieve that much of revenue.
Furthermore, it was observed that the concept of supply chain management (SCM) was
successfully implemented and it has been increasing around 20 percent per year.
Amazon’s incessant efforts to bring products to all the customers and users in the speediest
possible time by using efficient supply chain management. Amazon has around 2 million
employees and offers more than 0.5 million variety of products through its e-commerce
portal. It was also reported that Amazon is facing challenges around meeting order fulfilment
rate of 99% on time due to upstream and downstream challenges in its Supply Chain
Management (SCM).
2. PARTNERSHIP FOR SUPPLY CHAIN MANAGEMENT
Amazon partnered with many companies to enhance its revenue. Amazon partnered with
Drugstore.com, Wineshopper.com, Pets.com, Sothebys.com HomeGrocer.com Living.com
and Kozmo.com. In the year 2016, the U.K. Civil Aviation Authority was partnered with
Amazon to examine some technologies and maybe in the future partnership will also benefit
via the delivery service from air drone. In the year 2017, Nike and Twitter also announced a
partnership with the Amazon.
3. STAKEHOLDER
3.1 Owners (shareholders)
a) Jeff Bezos: He is the highest shareholder in Amazon. He has approximately
78.89 million of shares till May 2018.
b) Andrew R. Jassy: He owns 87,849 shares till May 2018.
c) Jeffrey M. Blackburn: He is senior vice president of business development and
digital entertainment in Amazon. Blackburn owns 64,928 of shares till May 2018

d) Jefferey Wilke: he has been the CEO of a worldwide consumer for Amazon since
April 2016 and he holds 64,807 of shares. He owns 10,000 shares directly and 54,807
indirectly shares.
4. ACTIVITIES THAT ARE IMPORTANT TO THE SUPPLY CHAIN
4.1 Rapid Growth
Amazon has shown a vital change in the growth of the revenue from $7 billion to $136 it was
only possible because the adaptation of supply chain management in their working process
and as a result the company benefited with 6.4% of gross worldwide e-commerce sales.
Suppose Amazon is growing with the rate of 20% per year then it should reach the revenue of
$1 trillion per year by 2027.
Through its highly effective supply chain management and innovative initiative, Amazon was
transformed from an online bookseller to the world most dominant and challenging power in
the selling industry (Sultanow, 2016)
4.2 Subcontracting Account Management and logistics
The supply chain management is totally depending on outsourcing or subcontracting of
management of the inventory. Especially, the products which are not purchased or get
ordered aren’t stored in Amazon warehouses. The same day or short time shipping is possible
only due to the dependence on logistics. It sells the third-party products doesn’t mean it is
using third-party’s logistics to supply/deliver the products to the customers (Stone, 2013).
The company administration understand that they will not depending on the logistic of third-
party because it would make increase the time of product delivery. This the reason Amazon
has been using its own vehicles for delivery on the same day.
4.3 Drones: Future Supply Chain Management Strategies
The company already declared the company making the drones to deliver the products to the
customers which will be call as Amazon Prime Air which would be delivering the products
which are under five pounds in weights to the locations which are located within 10 miles of
Amazon’s execution centres in just 30 minutes or may be less. It will may improve the supply
chain management for this research continues for many years (Monczka, 2015)
5. Two Supply Chain brands
5.1 Samsung supply chain management
Samsung having a complex and vast supply chain management (SCM) system which
repeatedly imitates a weak portion of the association. Their dealers are frequently muddled
and incapable to understand the real request of the business which consequences in

disappointment at in the first place. After augmented management and leadership the
company could produce the product which consumer demanded.
5.2 Apple supply chain management
Apple supply chain management functions is measured to be the finest in the manufacturing
and customer services. In significance to the purpose of product, to keep on revolutionising
them consumer products which are based on the effective suppliers. Their dealers understand
the demands and productions precisely they do in advance from them. Their record supply
chain management are brilliant because they relay it to consumers demand and supply chain
management between consumers. They also ensure the convenience of the products rather
than unsatisfactory to their customers with the weak management of inventory (Post, 2008).
5.1 Samsung and Apple order completion:
Both the companies are competitive in current economy, their inventory is also in the correct
place at the correct timing they both are quick and precise to provide the services. Samsung
and both somehow to meet the customer demand. In addition, the customer prospects on
deliver of the products within the time which is just remaining to quicken. They have been
able to track, monitor and report the status of the consumers order at every and every step
from ordering an item, its entry to the delivery. The optimize inventory is usage to minimize
the backorders and accelerate the order completion. Managing warehouses keeping, picking
and delivery is practiced decreasing processing times.
5.2 Increasing in the preferences of the products and the services
The business is evolving when there is new technology is being adapted by the company. The
advancement in the technology helps in the better supply chain management. Samsung and
Apple, both the company are updating the products; launching new model every month and
they are user friendly and are made accordingly to the customer preferences. The business is
grown only because of supply chain marketing. The information uprising has transformed the
nature of relations with the customers. Customers can study all of the choices and link
products without parting their desks. To continue modest, both company are applying the
information of the commercial and professional work to visit one step forward to the
customers.

6. Partnership models
6.1 Acquisition
Partnerships is carryout among two organization or individuals for an effective business. The
supply chain marketing is a very good approach to do an efficient business and acquisition
makes it easier to it (Brewster, 2016).
6.2 Minority interest
It is also mentioned to as the noncontrolling interest (NCI), is possession of not more than 50
percent of the company's equity by a stockholder or alternative company. For secretarial
determinations, minority interest is a slight share of the company amounting to 50 percent
less share of the voting. Minority interest demonstrations up as a noncurrent accountability on
the balance sheet of the companies it representative the amount of its companies possessed by
minority stockholders (Boxall, 2011).
7. STRATEGIC IMPLICATION
Strategy 1: Accept a demand-driven for development and business working model
based on real-time insights of demand and its shaping.
The tool for contingency planning and right prediction will confirm an overall view and an
effective answer to the risks such as providers profitable out of commercial and political
upheaval. Businesses regulate valuing and elevations strategies to form demand, move extra
product rapidly, drive income growth, or additional expand limits for the high-demand
product with limited market supply.
Strategy 2: Make an agile and adaptive supply chain management with fast integrated
planning and execution. Managers need to risk and fulfil the demand of the customers, it is
essential to familiarise the supply chains to altering market chances and events. Businesses
must arrange dynamic preparation capabilities and repeatedly fine-tune processes to ensure
receptive quickness to encounter altering demand. Marketplace reactivity, in the instant, has
not ever been informal to attain than it is currently—another time, with cloud skill and the
exact people, procedure, and expertise capabilities.
Strategy 3: Enhance product enterprises and product organisation for supply,
sustainability and manufacturing to quicken lucrative innovation. Revolution is vital for
being one step fast of the struggle. But innovation does not happen in a emptiness. To be
effective, products necessity be mass-produced at the accurate cost, dwelling, and time.
Choices made in the initial sequences of creation growth can make or disruption of the
product (McMillan, 2008).

CONCLUSION
Amazon is the global largest online platform which has been measured by their revenues and
capitalization from the market, and it is also second largest after the Alibaba Group in
relations of total number of sales. Amazon examine some technologies and may be in the
future partnership will also benefit via the delivery service from air drone. Amazon has
shown a vital change in the growth of the revenue from $7 billion to $136. The supply chain
management is totally depending on out sourcing or subcontracting of management of the
inventory. The business is evolving when there is new technology is being adapted by the
company. The advancement in the technology helps in the better supply chain management.
Partnerships is carryout among two organization or individuals for an effective business. The
supply chain marketing is a very good approach to do an efficient business and acquisition
makes it easier to it. It is also mentioned to as the noncontrolling interest (NCI), is possession
of not more than 50 percent of the company's equity by a stockholder or alternative company.
The right estimate and eventuality preparation tools will confirm a comprehensive view and a
real answer to dangers such as providers profitable out of commercial, political cataclysm,
and normal tragedies moving manufacturing. Innovation or Revolution is vital for being one
step fast of the struggle. But innovation does not happen in an emptiness.
REFERENCES
Stone, B., 2013. The everything store: Jeff Bezos and the age of Amazon. Random House.

Sultanow, E., Chircu, A. and Chircu, F., 2016. E-commerce Adoption: A Revelatory Case
Study in the German Oncology Pharmaceutical Supply Chain. In Proceedings of the
Conference on Information Systems Applied Research ISSN(Vol. 2167, p. 1508).
Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and
supply chain management. Cengage Learning.
Post, G.V., 2008. Management Information Systems Cases.
Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management.
Routledge.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave
Macmillan.
McMillan, E., 2008. Complexity, management and the dynamics of change: Challenges for
practice. Routledge.