An analysis of supply chain management and strategy

Supply chains were originally defined as encompassing all activities associated with the flow and transformation of goods from raw materials through to the end user, as well as the associated information flows. Supply chain management was then further defined as the integration of supply chain activities through improved supply chain relationships to achieve a competitive advantage.

An analysis of supply chain management and strategy

The combination of multi-tier inventory management, superlative transportation, and highly efficient use of IT Information Technologyand its wide network of warehouses are all geared towards aligning its SCM with its competitive strategy. The next aspect is related to its outsourcing of its inventory management.

Amazon outsources the storage and distribution of products that are not frequently purchased nor ordered for immediate delivery as well as products where the costs of storing them exceed the marginal returns on their sales.

On the other hand, Amazon stocks the frequently purchased and ordered items in its own warehouses so that it can be responsive to the customer needs as well as not compromise on the delivery times and the lead times.

In other words, by segregating its inventory, Amazon is able to be responsive to the customers as well as cut costs or cut slack where it is needed Kotler, Amazon divides its customer segments and follows a price differentiation strategy.

The various forms of delivery are one day delivery, free super saver delivery, first class delivery, and prime customers delivery. For all these segments, Amazon offers the customers an option of paying more for faster delivery or retains the traditional lead-time.

Coupled with the inventory outsourcing, the customer segmentation into price-differentiated customers offers the company a nimbleness and agility in the market that changes with dynamic fluctuations in demand. For instance, Amazon started off as a bookstore, which acts as an intermediary between the buyers and the sellers and does not stock any product of its own.

Gradually, this gave way to holding some items in its own warehouses and at the present, Amazon follows a push-pull strategy wherein the inventory is held in a push strategy and the shipment of the orders is done in a pull strategy. Of course, even now, Amazon follows pure pull strategies for items that it does not stock.

Supply Chain Strategy to improve your inventory optimization - Slimstock What is supply chain strategy? We will show you 7 attributes of a solid strategy and strategy formulation tools you can use.
Best Books 2018-2019 In the past, supply chain practice has been primarily tactical, but this program presents a new and innovative approach to supply chain design, which will enable program participants to better understand:
Stephen Slade The years from through were notable for their economic volatility, reflected not only in the global economic recession but also the instability of customer demand and rapid movement in raw material, fuel, and commodity prices. Supply chain executives were under pressure to develop more efficient, customer-centric supply chains while finding innovative ways to reduce costs and enable growth.

The first tier is the aggregation in the distribution centers, which ensures that Amazon holds fewer inventories and responds to demand in a dynamic manner. The next tier is comprised of the partner distribution centers and the wholesalers wherein whenever an ordered product is not available in its own distribution centers; Amazon can rely on its partners and wholesalers to supply the customer with the required product.

Further, through the use of sophisticated and real time IT, Amazon is able to leverage efficiencies in its distribution. The third tier is comprised of the networks of third party sellers, publishers, vendors, and manufacturers who ensure that Amazon acts as an intermediary that fulfills orders from customers by linking them to this tier.

By focusing on the five themes in which the analysis proceeded, we were able to identify the areas that Amazon does well in its SCM.

An analysis of supply chain management and strategy

However, there are components and aspects of the SCM of Amazon where improvements can be made. This section identifies those areas and proposes some recommendations that Amazon can follow and implement to make its SCM world class and be a source of sustainable competitive advantage.

ABC / XYZ analysis: understand your assortment

In other words, while the other components of the SCM seem to be efficient and complementing and supplementing each other, the part of the SCM where the customer interacts has been found to be deficient.

Therefore, Amazon can setup its own transportation and actualize superior last mile delivery by creating its own fleet of delivery vehicles and personnel. This means that Amazon can integrate its SCM better and move from a cooperation model with its suppliers to a coordination mode.

This would entail a sharing of information between all its partners and suppliers using the latest technology.

Further, this recommendation also entails creation of a unified IT system that can involve all the suppliers and the stakeholders in its SCM and not Amazon alone.Competitor Analysis: Strategy (outpacing) Resources Organizational Capabilities: Understand the needs of customers Strategic Management; Supply Chain; Documents Similar To Best Buy Analysis.

best buy. Uploaded by.

Portfolio & range management: optimise your investments in inventory

Superman Best Buy Case Study. Uploaded by. yan. Best Buy in Crisis.

[BINGSNIPMIX-3

Uploaded by. dais Best Buy Final Paper.5/5(1). One of the most overlooked supply chain risk management strategy is the one that involves visibility tools to monitor global shipments and take actions whenever necessary. Many companies have opted for supply chain event management technology that sends alerts to key personnel to address potential delays and take corrective actions.

Dec 07,  · Target Supply Chain Strategy Case Analysis 1. A critical analysis of Target’s current Supply Chain Strategy and Recommendations for improving in .

Analysis of Amazon’s Supply Chain Management Practices Analysis To start with, Amazon’s SCM has a strategic fit with its competitive strategy of being the retailer of choice for its customers. Jan 31,  · In strategic supply chain analysis, multiple groups of decision makers may have conflicting interests, since there can be an impact across departments and business units.

Aaron Baker of Damco USA offers two global supply chain strategy examples that illustrate the decision makers and decision variables needed to ensure the chosen solution is optimal for the business.

An analysis of supply chain management and strategy

Supply chain analysis is a tool that allows us to assess the impact of an environmental policy through a simple Excel table with data on complete financial accounts of .

Analysis of Amazon's Supply Chain Management Practices