Amazon: Delivering the Goods... Millions of Times a Day

Amazon: Delivering the Goods… Millions of Times a Day

1) Amazon.com targets customers who want a fast, easy, and enjoyable shopping experience. When it comes to supply chains and logistics, one of their goals is to collaborate with suppliers to increase efficiencies and improve inventory turnover. To have effective supply chain management Amazon is using software to accurately forecast purchasing patterns by region, which allows it to give its suppliers netter information about delivery periods and sizes. Technology has been essential in this process. The speed of telecommunications has enabled Amazon to pass information back and forth and get items through the system. Once the information is in the system, it ensures that all items are included in the shipment before it is sent out to delivery. This helps the supply-chain be efficient, provides customer satisfaction because their items arrive on time, and lowers the cost of delivery by shipping efficiently and all in one box. This enables Amazon to reduce cost because of their improved supply-chain performance can be passed on to consumers as lower prices. It also increases on-time order fulfillment. For example, during the holidays, 99 percent of the deliveries were a success. Also, it allows Amazon to provide more items for sale. Because of their efficient supply-chain and logistics Amazon continues to add more products available to consumers expanding their growth and revenue. Because the proper handling of supply-chain and logistics, Amazon has been able to creating this efficient system that helps them grow in many areas while generating revenue, customers return back to the company in the future because of customer satisfaction for which the company sees value in customers.

2) Amazon improved the flow of products from suppliers to distributors centers and the flow of orders from distribution centers to customers. The center of supply chain is an information hub, where information is received and processed quickly and then sent out to other supply-chains members successfully. For example, Amazon uses software to sort out purchasing patterns, which would be considered market analysis and customer data, which enables supplier to efficiently control and complete on-time delivery dates. Amazon has also improved the speed and accuracy of orders processing. Amazon focused a whole year on increasing productivity. Before this software was developed Amazon had 12% of its delivery mishandled, with this new software the percent decrease to 4%. The development of this system of order processing productivity resulted in the ability to share information quickly and efficiently. This improved system continues to increase future sales, profits, and customer experience for Amazon.