Abstract
As a high tech driven industry, Amazon’s approach to supply chain management has derived an unprecedented change in global retail shopping and logistics capability. For this reason, the meaningful purpose of the case study analysis is to facilitate a discussion about the significance, and success related to of Amazon’s eCommerce and eFulfillment as it relates to global supply chain operations. Furthermore, this analysis will discuss how the “Amazon Effect” could impact the future state of jobs and economies throughout the marketplace.
Introduction
For most companies to be competitive in today’s global marketplace they must integrate an effective supply chain strategy that positions the organization to respond to a high …show more content…
To meet the expectation of the consumer, Amazon has strategically placed global distribution centers that operate on a continuous fulfillment schedule with immediate order processing, and more frequent pick-up and delivery points. As a result, industries and retailers have chosen to rethink how they do business in order meet the supply chain demands of Amazon while trying to stay viable in the marketplace. For example, to accommodate for the increase in orders manufacturers have strategized themselves to produce smaller lots with more frequent machine changeovers. Furthermore, the procurement of products and materials has changed as purchase requisitions are generated for smaller order quantities, and transportation carriers have modified schedules to accommodate for more frequent shipments. Amazon has redefined the rules of supply change management and many strategists refer to this as “Amazon Effect” (i.e., to stay competitive, companies must alter their way of doing business as the expectations of the consumer have changed).
Clearly, Amazon figured out the customer’s needs and grasped the importance of creating a highly responsive supply chain infrastructure much earlier than many rival competitors. Notably, Amazon is still accelerating delivery times from 48 hours to next …show more content…
Furthermore, Amazon acquired a fleet of more than 4,000 trucks and reportedly has plans to lease more than 20 airplanes to move freight around the globe. One of Amazon’s most recent endeavors, which is causing quite a bit of turmoil, is the acquisition of Whole Foods. Some speculate that this acquisition is to extend their market share of its “Prime Now” service, which recently merged with their “Amazon-Fresh” service, resulting in a greater operating capacity in terms of supply chain efficiencies. However, some speculate this is an attempt to work themselves into the brick-and-mortar business. Much like the freight-forwarding business, this acquisition raises an eye to implications for the future of the grocery business. Bottom-line, Amazon is aggressively moving forward at an incredible pace of innovation at might be best to position ourselves to take advantage of the “Amazon
As a high tech driven industry, Amazon’s approach to supply chain management has derived an unprecedented change in global retail shopping and logistics capability. For this reason, the meaningful purpose of the case study analysis is to facilitate a discussion about the significance, and success related to of Amazon’s eCommerce and eFulfillment as it relates to global supply chain operations. Furthermore, this analysis will discuss how the “Amazon Effect” could impact the future state of jobs and economies throughout the marketplace.
Introduction
For most companies to be competitive in today’s global marketplace they must integrate an effective supply chain strategy that positions the organization to respond to a high …show more content…
To meet the expectation of the consumer, Amazon has strategically placed global distribution centers that operate on a continuous fulfillment schedule with immediate order processing, and more frequent pick-up and delivery points. As a result, industries and retailers have chosen to rethink how they do business in order meet the supply chain demands of Amazon while trying to stay viable in the marketplace. For example, to accommodate for the increase in orders manufacturers have strategized themselves to produce smaller lots with more frequent machine changeovers. Furthermore, the procurement of products and materials has changed as purchase requisitions are generated for smaller order quantities, and transportation carriers have modified schedules to accommodate for more frequent shipments. Amazon has redefined the rules of supply change management and many strategists refer to this as “Amazon Effect” (i.e., to stay competitive, companies must alter their way of doing business as the expectations of the consumer have changed).
Clearly, Amazon figured out the customer’s needs and grasped the importance of creating a highly responsive supply chain infrastructure much earlier than many rival competitors. Notably, Amazon is still accelerating delivery times from 48 hours to next …show more content…
Furthermore, Amazon acquired a fleet of more than 4,000 trucks and reportedly has plans to lease more than 20 airplanes to move freight around the globe. One of Amazon’s most recent endeavors, which is causing quite a bit of turmoil, is the acquisition of Whole Foods. Some speculate that this acquisition is to extend their market share of its “Prime Now” service, which recently merged with their “Amazon-Fresh” service, resulting in a greater operating capacity in terms of supply chain efficiencies. However, some speculate this is an attempt to work themselves into the brick-and-mortar business. Much like the freight-forwarding business, this acquisition raises an eye to implications for the future of the grocery business. Bottom-line, Amazon is aggressively moving forward at an incredible pace of innovation at might be best to position ourselves to take advantage of the “Amazon