The Next Stage is in respect to the subcontracting of its Inventory Management. Amazon subcontracts the distribution and storage of products that are not usually ordered or purchased for instant delivery and also products where the marginal returns on their sales is far below the costs of storing them
While on the Other hand, Amazon …show more content…
The different forms of delivery are free super saver conveyance, one day conveyance, prime customers conveyance and first class conveyance
In all these divisions, Amazons provides customers an alternative to retains tradition lead-time or paying more for quicker delivery. In respect to the inventory subcontracting, the customer segmentation into differentiated price for customers provides the company an agility and nimbleness in the market that alters the active and changing variations in demand
A major aspect of Amazon’s Supply Chain Management (SCM) is that it has developed gradually over the years in reaction to its rapid growth in the market. For example, Amazon began as a book store which serves as an intermediary between the sellers and the buyers and does not store any product as its own
Gradually, the pave way to possessing some items in its personal warehouse and at present, Amazons applies a Push-Pull Strategy whereby the stock is kept in a Push Strategy and the exportation of the orders is carried out in a Pull Strategy. Presently, Amazon abides by an active Pull Strategy for products for products that it does not …show more content…
In present years, Amazon image brand has taken a hit due to the last part of the Supply Chain Management (SCM) that is distinct to the end consumer and a s a result of its unreliability to the last minute connectivity
- in respect to “Bullwhip”, this entails that Amazon can fits into its Supply Chain Management (SCM) more better and move to a coordination mode from a cooperation model with its suppliers. This would entail disseminating of information between its entire supplier and its partners by applying the current technology
- In Conclusion, recommendations entails amalgamating its Supply Chain lesser than one biggest Information Technology (IT) system so as to ensure a greater distinction on every component of the supply as well as more transparency and accountability in the process. Amazon subcontracts some activities and results to accountability issues. And also, in respect to the major theme of this paper, Amazon should integrate its overall supply chain from end to end in a single Information Technology (IT) system so that bottlenecks can be recognized and majorly acted