Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Brief history of amazon company
Inventory management case study amazon
Amazon's supply chain process
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Brief history of amazon company
Introduction Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 14.87 billion in 2007. Jeff Bezos’s intention was to create an internet based company with the most dedicated product portfolio on the internet where customers could find anything they might want. Amazon’s success is based on technology, services and products (Jens et al., 2003). Controlling inventory is known to be one of the toughest problems for companies. With 39 million active customer accounts and a vision such as being "Earth’s biggest selection of product", Amazon has been putting a lot of effort to be as efficient as possible in their inventory management. The purpose of this report is to understand the evolution of the inventory management of Amazon and how it has affected the company’s growth. This case study is both a practice case and a problem solving case, so the first section of this report focuses on the practices used by Amazon in the 4 stages and then in the second section we will solve the problem regarding their product returns problem and provide recommendations. I- The 4 Stages of Amazon Amazon’s Inventory management can be divided into 4 stages: 1) An initial start with no inventory 2) Built warehouses to store inventory 3) Entered into partnerships with distributors 4) Entered into partnerships with retailers 1. Initially started with no inventory In the first stage Amazon’s main objective was to create a virtual bookshop, where customers could have more choices than any physical bookshop in the world, but also, he did not want to spend time and money on building warehouses and deal with inventory b... ... middle of paper ... ...graphy 1. Saunders. R (2001) Amazon.com way – Secrets of the world’s most astonishing web business, Capstone 2. Bezos, Jeff (1998) A Bookstore By Any Other Name, viewed 20 March 2008, 3. Jens, C., Peter, M (2003) The Industrial Dynamics of the New Digital Economy, Edward Elgar Publishing 4. Hof, R. (1999) What's With All the Warehouses?, viewed 18 March 2008, 5. Ordering from merchants, viewed 26 March 2008, 6. Choen, S. & Roussel, J. (2004) Strategic supply chain management, McGraw-Hill 7. Julie, A., Sokol & Robert, J. Thomas (2004) State of the art, viewed 27 March 2008, 8. Rao, K., and Young, R. R. (1994) Global supply chains: Factors influencing outsourcing of logistics functions. International journal of physical distribution and logistics management. Vol. 24. No. 6. 9. Chaffey, D (2008) Amazon.com case study, viewed 20 March 2008,
The most obvious technological advance that helped Amazon, and the one that launched the company, was the internet (Parnell, 2014). Jeff Bezos knew that he wanted to open an online business and decided to start with a bookstore due to low pricing and an existing worldwide demand (”Amazon.com, Inc. History”, n.d.). After deciding on a model, he chose Seattle as a home for his business due to its proximity to high tech workers and a large book distributor. The website opened with a database of more than one million titles, whereas many competitors only stocked 2,000, and the orders went directly to wholesalers. Amazon quickly expanded their database to 1.5 million books and started offering deep discounts which attracted many new customers.
One of Amazon’s main focuses is to create value for it’s customers. To do this, their number one strategy is to exceeding customer’s expectations. Amazon does a lot of little things very well. These little things are often overlooked by other retailers and, as a result, create customer loyalty for Amazon.
They also have a center in Columbia, SC that pays top dollar to its employees. The company is always hiring, but some time hours are extensive. Amazon has a specific system that helps to keep their distribution centers flowing well. The system amazon has developed it helps to predict what consumer’s patterns by the region they live in that gives them a better idea of what to or not to keep in stock. There is three flows of products come from. These are where the information is coming from, how quickly it is processed, and how it is sent out to others. Amazon uses this type of so it flows efficiently. The main goal of them is to collaborate with suppliers. Only 12 percent of their order have been sent to the wrong location. Currently they only have 4 percent of inventory
Almost twenty years ago, an individual named Jeff Bezos had a vision. He saw financial potential with the growth of the internet. He wanted to change the ways of retail commerce in a way that had never been done before. Amazon began as a vision and was born in Jef...
The objective of this case study is to outline and provide a brief overview of Amazon.com’s (Amazon) mission, strategic direction, core competencies, relied technologies and their future impact of new technologies, and how management and use of consumer data will impact future business.
For the Amazon.com, it is an international eCommerce company. It is the world’s largest online retailer. Amazon sells the books, movies, music and games along with electronics, toys, apparel, sports, tools, groceries and general home and garden products. The company has plenty of warehouse in the United States and Canada. So, in each of the warehouse, the company has employed hundreds of employees. The employees are assigned to handle the some tasks, which are unpacking and inspecting incoming goods, placing goods in storage and recording location, picking goods from their computer recorded location and shipping. Amazon also has used some system to manage their warehouse, which are SkuVault and Kiva system.
The current inventory processes we have in place are not as efficient as they could be. The main problem is there is no communication between departments, factories, and suppliers. This causing an abundance of wasted man hours, and inventory produced. Our goal is to provide more communication between departments, factories, and suppliers to create more efficiency and produce less waste.
To recap it all, we can clearly see that Amazon has respected their value chain and by doing so created a means of delivering time after time. Demand chain and supply chain relates to how a company can gain maintain and understand how to keep their competitive advantage for a specific period in time. We have learned that amazon has brilliantly placed themselves in a position that would anchor their consumer’s future buying decisions. With the proper information, correct management and direction and support companies should follow the way this company has set themselves up to become pioneers in the e-commerce business. This inspirational company took a strategic idea and waited for the best time to act and therefore created a lasting memory on the e-commerce business industry.
Also, Amazon sells many products from many different brands and companies. The customers are most important to Amazon and Amazon knows that the delivery service is one thing that customers want the most. The way that Amazon fulfills the customer’s satisfaction of its delivery service is by having 55 fulfillment centers located in North America. Because fulfillment centers are not retail stores, Amazon products aren’t required to charge sale taxes. Along with the 53 fulfillment centers that Amazon has in North America, Amazon also has 53 distribution centers in Europe, Japan, Asia and India. Since Amazon has a lot of warehouses in many different locations, it can reach to its customers more conveniently. Amazon has been growing throughout the years has allowed its company to be able to reduce its costs. Besides being one of the top online shopping sites, Amazon has also developed the Kindle, which is now one of the most popular e-reader tablets out
When Amazon.com first began in 1995, as strictly a book retailer, Bezos knew he had discovered an excellent company. After all, a physical bookstore cannot stock anywhere close to the number of books Amazon can offer online. Within a year, the company had a customer base of approximately 340,000 consumers and daily site visits were huge as well. But Bezos wanted to expand the company to offer music and DVDs, because he realized there was little or no barrier of entry. In the next years Amazon would emerge as a marketplace, expanding the company globally offering products from toys to kitchenware. Because of the relatively cheap prices Amazon was offering and also the growing number of online shoppers, the company was doing tremendous amounts of sales and creating profits.
Amazon was incorporate in 1994 and was offered publically in 1999. It has grown rapidly into the world’s number one online retailer, with millions of products. To achieve this, Amazon has acquired a global network of distribution centers and used technology to provide consumers with access to the best products at the lowest rates. Amazon’s services have become integrated into the modern consumer’s demands for immediate (or near immediate) gratification and investors are highly optimistic about the company’s prospects.
When you think of online shopping one of the first things you think of is Amazon. Amazon has one of the best supply chain systems in the world. Launched in 1995 as an online bookstore, it is now the largest online retailer in the U.S. With an online inventory of 170 million products, Amazon has an innovative supply chain management system that creates a highly competitive advantage. This “tour” of Amazon will go over some of the operations and what makes Amazon the company it is.
Amazon is a major electronic commerce and cloud computing company. It is the largest internet based retailer in the world in terms of sales. Jeff Bezos funded Amazon in July 5th 1994. Amazon was rated as the largest internet company as of November 2014. Amazon started off as an online bookstore and slowly expanded its business in various other fields within e-commerce and now is a well-known brand over the world. The online commerce market is increasing in a rapid rate and building intensive competition. The Company offers its clients a predominant shopping encounter by giving quality and a high level of customer satisfaction. Amazon.com is a demonstrated innovation pioneer; it has created electronic trade developments, for example, 1-Click requesting, customized shopping administrations and simple to-utilize inquiry and peruse highlights. Shopping at Amazon.com is quick and safe, consolidating a straightforward requesting framework, secure credit card
Amazon has recorded a magnificent success in its business throughout the years that it has been in operation. It has attracted almost all people to use it when necessary. Amazon has built its success in business methodically and slowly. Amazon has made much success because of its ability to read market trends and diversify its operations. It started as an online book selling company. However, it changed its operations and started selling other products. Currently, many large retail shops use Amazon to host and power their websites, for instance, sears and virgin megastores. Amazon now attracts over fifty million visitors in a period of one month. Amazon has tried to make their services fit each individual user. It has based its services on the end user. It has shipping discounts, customer product reviews and a credit card with bonuses. It also has prime membership, product forums and 1-click ordering system among other services. The company has tried to make a remarkable experience for customers and visitors (Thomas, 2006).
Seeing the worth of inventory itself and the cost associated with it, inventory management poses an important field of consideration for organizations and their managerial accounting. This paper is meant to define inventory management, show its importance as well as advantages and disadvantages. Furthermore, we will introduce businesses providing inventory management services and systems to organizations, and the industries that require inventory management. To get a broader view, we will also discuss whether or not federal, state, and local governments should have inventory managements and what keeping inventory in other locations implies for insura...