The chapter 14 case talks about Amazon, and describes its way until became one of the largest companies of online shopping, and Kindle as one of the first generation of Kindle. Amazon according to the case has no roof over its head which would mean that technically there’s not a particular shopping store where you can go and buy something. But is online shopping, and where the sellers and buyers are connected with each-other through phone calls, website, and emails as a particular way to connect every one of us. As of now Amazon is one of the biggest online sellers with almost $32.4 in 2010. Only with the amount of money that Amazon profits, we can see that it is a very big company, and pretty much the biggest one. Today there are a high
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In comparison, a firm that doesn’t use technology consequently must revert to the traditional trade-off where improvement in one dimension is accomplished only at the sacrifice of another dimension where lower cost is achieved only by providing slower service. The same example applies to Amazon where actually, it is not necessary anymore to have a large amount of employees doing the same job as few others do, and with a lower cost, such as less money spent in delivery, and less time to deliver it, which would not just make the customers happier, but would also give a higher profit to the firm. Software also is an important part of Amazon’s operations. The “one-click” buying that would also allow customers to feel happier with the service they received, in the amount of time, and without a need to leave work, or school just to buy something, they can do that while studying etc.
3. Discuss the nature of Amazon’s supply chain in terms of control, purchasing management and inventory management. At what points in the supply chain does Amazon outsource or contract activities to outside parties? How Amazon’s supply chain management does affects its revenues and costs?
Supply chain management is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain, as in Amazon, or any other online “store”, the supply chain management spans all movement and