Supply Chain Management on Amazon Assignment

Table of Contents
Executive Summary...................................................................................................................2
1.0 Integrated Supply Chain Management.................................................................................2
1.1 ISCM OF Amazon............................................................................................................2
2.0 Amazon and Internal Integration.........................................................................................3
3.0 Amazon and External Integration........................................................................................3
4.0 Amazon and Electronic Integration.....................................................................................4
5.0 Challengers of Amazon on Supply Chain Management......................................................4
5.1 To ensure that demand meets its supply...........................................................................4
5.2 Prepare resources for order deliveries..............................................................................4
5.3 Improve technical infrastructure to manage spikes in orders...........................................4
6.0 References............................................................................................................................5

Executive Summary
Amazon is a company that sells books with the strategic approach of being the customer's
preferred supplier, supplyPchainPmanagementPhasPreachedPnewPheights. Amazon is a
wonderful example of if you are a large or smaller company, with increasing productivity,
increased scope and profits, trying to scale up your internet operations. Although many
factors influence the success of Amazon as the pioneer in ecommerce, his state-of-the-art
supply chain model is the most important. Amazon is now a rapidly growing company that
has one of the strongest supply chains in the world. The Amazon new supply chain model is
close to what was used for the first time in 1995, the company sold books online. The
objective is to examine and analyze the management of Amazon's distribution chain. Using a
multi-tier stock and its highly efficient operation, sustainable transport and a warehouse
network, supply chain management has been tailored to meet competitive strategy.
1.0 Integrated Supply Chain Management
Integrated supply chain management is a supply chain management methodology based on
enterprise resource planning. Rather than having several processes within the company, a
business facilitates relationships with all of its suppliers and handles all delivery and logistics
operations through a centralized system. The integrated supply chain method provides
concentrated technical experience and cost efficiency, but improving cooperation is a
challenge. In a manufacturing, wholesale, or retail industry, supply chain management (SCM)
is a coordinated framework for managing transportation and logistics activities. One of the
benefits of the ISCM model is that it automates the collection of aggregate data from existing
systems. This automated method allows for the collection and analysis of real-time, up-to-
date data by leadership(Nair and Sharanaya, 2018).
1.1 ISCM Of Amazon
Amazon's supply chain relies heavily on its outsourcing of inventory management. Increased
goods in Amazon warehouses are not regularly stored. More than half of Amazon's sales
could surprise you that they are supported by third parties. This totalled more than 3.4 billion
products sold through third parties in one year according to the Amazon report in May 2020
(Sabitha, 2004). Amazon has different warehouses for various kinds of goods and consumer
needs. Amazon customers can offer primary delivery, 1-day delivery, premium delivery and
free super-free delivery in some of the common delivery options. With its constant efforts to
satisfy the delivery preferences of every customer, Amazon is a logistical powerhouse. As a
result, it uses a pure push approach to the goods that it stores in its warehouses, which
predicts demand for the area. On the other hand, when it buys items from third parties, it uses
a sheer pull-out approach, with a delivery model by order.

2.0 Amazon and Internal Integration
Although quality and experience were and continue to be at the core of Amazon.com's
success, the company's organizational structure also plays a key role. Amazon's
organizational structure allows for extensive top-down management of global e-commerce
operations. Since the company has many operations in different business areas, this is fine.
Amazon must maintain a policy that supports its diverse and rapidly expanding business
scope as a leading online retailer(Agrawal, 2014). A new Amazon device begins as a concept
- an idea for improving customer support and entertainment. The Operations and Supply
Chain team scales manufacturing and delivers to a global customer base as a system moves
from concept to production. To ensure that their devices are manufactured and shipped to
millions of customers in a safe, accurate, and high-quality manner, the Operations and Supply
Chain department is responsible for planning, supplier selection and coordination,
manufacturability, logistics, and much more(Chiles and Dau, 2005). To ensure effective
product launches and ongoing support, employees in the Operations and Supply Chain
organization will collaborate closely with teams from hardware production, inventory
management, distribution, and other departments. As Amazon's product portfolio expands,
they expand their capabilities and drive quality growth(Agostino, 2018).
3.0 Amazon and External Integration
Customer Relationship Management is the subject of all of these valuable features. Amazon
has created its own CRM software, which is tailored to the company's unique needs and
specifications. Amazon's apps will encapsulate customer data, such as past purchases and
location, and use it in real time to alter and customize a user's overall on-site experience.
Amazon's CRM also answers the vast majority of customer questions without the need for
human interaction. For example, every customer has easy access to their order history, which
allows them to see which products they've ordered, where they are in the delivery process,
and how much they've spent. Their returns strategy is similarly automated, eliminating their
need for customer service personnel and the related costs. By improving cooperation and
knowledge sharing with supply chain partners through streamlined workflows, system-based
applications and automatic notification, Amazon is committed to helping suppliers make
excellent products better. A good supplier relationship is ensured by systemically record
keeping, consolidated content and enhanced access to highly dynamic upstream supply chain
data. In addition to existing suppliers such as USPS, USPS and FedEx, Amazon Logistics is
a shipping and supply operation. It provides distribution options of seven and the same day
and it makes use of a number of third-party logistical partners around the country – including
motorbikes, walkers and motorcyclists in some areas. For certain third-party suppliers,
Amazon has such stipulations, but it is important to note that they are not staff at Amazon.
They are independent suppliers of logistics hired to collect deliveries in Amazon warehouses
and dispensing centers.

4.0 Amazon and Electronic Integration
The Amazon supply chain relies heavily on solutions such as automation and robotics in its
fulfillment centers, to select and prepare orders ready for shipment, as well as stack inventory
and of course for distributing orders. The next launch of Amazon Prime Air Drone Delivery
is perhaps the technical development most anticipated. Drones can provide consumers with
small packages in less than 30 minutes after they have been deployed (The et al., no date).
Amazon provides sellers with a convenient means by operating 11 online markets to expand
their business internationally and introduce their brand to millions of potential buyers. These
markets in the Amazon region offer salespeople an enormous e-commerce opportunity as
they have access to consumers who not only trust in the Amazon shopping experience. The
ability to leverage the brand Amazon without the associated costs is one of the key
advantages for sellers(Li and Fan, 2014).
5.0 Challengers of Amazon on Supply Chain Management
5.1 To ensure that demand meets its supply
The inaccurate demand forecasts often dissatisfy consumers. In anticipation of large orders
during Prime Day and the holiday season, Amazon resolves demand and supply issues yearly
by loading inventory. They are data driven and they decide long before events or holidays
based on historical data and current consumer patterns(Bharadwaj, 2019).
5.2 Prepare resources for order deliveries
Amazon's last-mile delivery is a nightmare, especially for peak seasons like Christmas and
Black Friday. In fact, during the Christmas season of 2013 Amazon experienced a serious
logistics failure and many customers did not get their orders. Amazon is therefore preparing
to take the final delivery mile. Amazon plans its own distributor network and is expected to
become the world's largest shipping company soon. It has become the speculation.
5.3 Improve technical infrastructure to manage spikes in orders
Although Amazon owns AWS, the world's largest cloud computing service, the technology
infrastructure of the company continues to be overburdened on the sale of Prime Day. During
Amazon Prime Days' first few years, customers have expressed their complaint that they
cannot check out their orders. The behemoth department also works to solve technical
problems. While Amazon is a trailblazer in the e-commerce industry, there are no problems
with the management of the supply chain(Bharadwaj, 2019).

6.0 References
Agostino,fJ. D. ’ ,(2018) ‘Amazon,h E-Commerce, fand the New Brand World’, (June). Available at:
https://scholarsbank.uoregon.edu/xmlui/bitstream/handle/1794/23999/Final Thesis-DAgostino.pdf?
sequence=1&isAllowed=y.ff f f f f f f f f f f f f f f f f f f f f ff f f f f f f f f f f f f ff f
Agrawal, V. C. (2014) ‘Case Study- hAnalysis’,Globald Business Review, 15(1), pp. 179–182. doi:
10.1177/0972150914528076.h g 4 4 4 4
Bharadwaj, cS. (2019) ‘The engineering dbehind a dsuccessful jsupply chainj management strategy:
An cinsight into jamazon.com’, hInternational Journal of Scientific andTechnology Research, 8(10),
pp. 281–286.
Chiles, C. R.hand Dau, dM. T. (2005) ‘An dAnalysis of dCurrent Supply dChain Best Practices in the
Retail Industry with Case dStudies of Wal-Mart dand dMaster ofhEngineering in cLogistics
Massachusetts dInstitute of dTechnology cSignature of cAuthor An Analysisdof Current Supply
Chain Best dPractices in’, Master’s cThesis, p. 30.
Li,hY. and Fan, R. (2014) ‘The coordination ofc E-commerce andhLogistics jA case study of
Amazon.com’, A case study of cAmazon.com, (January), p. 51.
Nair, S. V andoSharanaya (2018) ‘Supply ChainjManagement cSystem of Amazon’,International
Journal of Latest dTechnology in dEngineering Management & Applied dScience, VII(I), pp. 2278–
2540. Available at: dwww.ijltemas.in.
Sabitha, Z.(2004) ‘ Case Study on Amazon’s Supply ChainjManagement Practices’, dSchool of
management Studies, p. 11. dAvailable at: dhttp://www.dslideshare.net/aneeshp1/case-study-on-
amazoncoms-supply-chain-management-practices.
The, W. et al. (no date)‘ The rise of B2B B2C expectations from B2B buyers’.
Yu, Y. et al. (2016)o ‘E-commerce Logistics in cSupply Chain cManagement: cPractice Perspective’,
Procediac CIRP, 52, pp. 179–185. doi: c10.1016/j.procir.2016.08.002.