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SUPPLY CHAIN

Presented By:

102 Yatendra Bihani


109 Sharmila Iyer
110 Mohnish Jain
Amazon – Company Overview
• Founded in 1994

• Started selling books online and now operate web sites that
offer various products and services, which include: music, DVDs,
videos, electronics, clothing , shoes, etc.

• Headquartered in Seattle (Washington) with an additional office


in Coffeyville, Kansas

• Amazon has eight global websites to serve domestic customers


in the US, the UK, Germany, France, Japan, Italy, China and
Canada
Supply Chain Challenges
• Supply Chain Design

• Inventory Segmentation & Policy

• Order Sourcing Cost Minimization

• Fulfillment Cost

• Transportation – Balancing Cost & Service


Amazon – Operating Models
• Amazon.com as a Seller

• Amazon.com as Intermediary - Third-Party Sellers

• Amazon.com as Full Service e-Commerce Provider - Merchant.com


US Supply Chain Network
• Retail Outlets

• Distribution Centers (Fulfillment Centers)

• Transportation Hubs – ‘Injection Points’

• Drop Ship Locations


Amazon’s Inventory Segmentation

• Amazon.com is able to support the selection


of over 20 million products online through its
multi-tier inventory network

– Distribution Centre Network


– Wholesaler and Partner DCs
– Publishers, Manufacturers, Vendors, And Third-party Sellers
Amazon.com's Multi-Tier Inventory Model
Replenishment and Distribution
Processes

• Replenishment Process

– Amazon.com replenishes its distribution centre inventory through a


variety of suppliers

– Amazon.com utilizes a Sales and Operations (S&OP) planning


process to determine forecasts for each product that it stores in
its distribution centre inventory
• Distribution Process

– The distribution process is initiated by a customer ordering from


the Amazon.com website or an affiliate website

– Amazon.com's IT systems determine which Amazon.com


distribution center to ship the item from or whether to ship the
item from a drop shipper
Intra-Distribution Centre Profiling
and Processes

• Item Activity and Order Profiling

• DC Inbound Processes
– Receiving
– Put-away
– Storage

• DC Outbound Processes
– Picking
– Sorting
– Packing
– Shipping
Case Flow Prime Single Order Picking; Batch
Pallet Prime Packing Library Prime Packing
Packing Picking; Cluster Picking

Full-Case; Non-
Item Sortation Manual; Semi-Automated;
Conveyable; Single unit
accumulation
Automatic

Packing Packing

Shipping
Transportation
• Injection points

• Customer Scale

• Service Window
Technology
• Highly customized software application
• Tightly integrated supply chain
• Real-time updates
• WMS
• RFID
Supply Chain Research Initiatives
• Order Sourcing Decision - Re-
Evaluating Real Time Decisions

• Distribution Center Initiatives -


Efficiency and Capacity Planning

• Leveraging Scale and Service


Windows
SCS linked to Competitive Strategy

• Scale, Scope and Service Integration


THANK YOU!

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