Analysis Of Amazon As A Supply Chain

Amazon as an agent:
In this model of supply chain, Amazon acts as an agent where it doesn’t own the product or even store the product in the warehouse. The suppliers can sell their products online through Amazon. In this model, the suppliers list their products online through Amazon and when a customer buys it, the product is directly shipped from the supplier to the customer. Amazon acts an agent and takes agents fee from the supplier. Product shipment Agent

Summary of the two supply chains:
The two supply chains of Walmart and Amazon are different from each other and are best at their own perspective. The Amazon’s supply chain is completely based on online retailing whereas the supply chain of Walmart is based on “bricks and mortar”

Third party logistic providers are those who provide special services like warehousing, distributing, packing, and cross-docking. Third party logistics generally focusses on specific functions like shipment forwarding and distribution (Robey, 2014). The advantages of third party logistics are cost reduction, improved efficiency, service and flexibility. Outsourcing a third party logistics helps in sharing the risk and access to various resources that are not available at one’s own company. Third party logistics also helps in having a better cash flow to the company. On the other hand, it also has few disadvantages like losing control over the various special services and functions. This also results in loss of personal touch with the customers (Kumar,

They carry various operations like packing, delivering of products to other retailers globally. They can make an impact on supply chain operations of other companies which also includes Walmart and Amazon. The expertise of Li and Fung is supply chain management and to target the companies whose supply chain management is not one of its core strengths.
It is essential for a store based retailing and online supply chains to collaborate with such companies like Li and Fung, which helps in improving the section of operations that they are specialised. Those entities can be more efficient and sustainable in the market. The collaboration of companies that provide third party logistics and fourth party logistics will help the company to improve its performance and cash flow. The third party logistics and fourth party logistics has a great impact on store based retailing company like Walmart as they are more efficient in logistics and delivering to the customers so that Walmart can focus on other aspects in which they are good at and leave the logistics section to TPL and FPL partners. In an online supply chain, a company like Amazon can collaborate with third party or fourth party logistics that are efficient in addressing the damage of the delivered product and take an action on