Amazon Supply Chain Analysis Paper

1043 Words 4 Pages
When Amazon founder Jeff Bezos started the company in his garage in Bellevue, Washington, he probably didn’t think that it would grow to be one of the most innovative and successful internet retailers of the 20th century (Frazier, 2016). What started off as an online book retailer with a selection of over 1 million titles, Amazon has expanded its product offerings and now offers practically anything a consumer could enter into the search bar. Because of this, Amazon.com has made its mark in the world of e-commerce and found a way to stand out from the rest of its online competitors, notably the long withstanding EBay. Because Amazon offers a wide-range of products, they not only compete with other internet retailers, but also traditional brick-and-mortar …show more content…
Amazon’s supply chain system is very customer centric and they take a unique approach to dealing with the needs of their customers. In order to meet the needs of their customers, Amazon has taken steps to move their distribution centers closer to major cities and metropolitan areas, that way they can reach a larger number of people in a shorter amount of time by having multiple distribution centers instead of one central distribution centers. This reduces lead time and response time while leading to better customer service levels. As an e-commerce business, Amazon has made using technology to broaden its margins and deliver services to customers that continually beat out that of its …show more content…
Amazon’s inventory control strategy keeps it ahead of its competitors and helps it remain popular among consumers. Amazon outsources many areas of its supply chain, specifically its bookstore, to improve inventory costs. Outsourcing the inventory allows for Amazon to reduce inventory costs and sell competitor products to keep customer satisfaction levels high and sustain their competitive advantage. Amazon also outsources other areas of their inventory to third parties to cut operational costs and focus on the core activities of the company. Customers greatly trust amazon and its inventory management has led it to the top of e-commerce customer

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