Information Technology and Supply Chain Management in Amazon.com
Introduction
The most critical component of the Amazon.com business model is the efficient, profitable performance of its supply chain. For online retailers who compete in high velocity sales environments, the ability to orchestrate suppliers across a very broad supply chain is critical for their continual profitable operation and growth (Albors-Garrigós, Hervas-Oliver, Márquez, 2009). Integral to this aspect of Amazon's business model is the role of Information Technologies (IT). It is the intent of this essay to evaluate the importance of information and IT in the functioning of a supply chain, define how each supply chain driver uses information, and discuss the major applications of supply chain IT and what processes they enable. In addition, a discussion is included of how SAP SCM modules support supply chain management.
Analysis Of Amazon.com's Supply Chain Management Systems
The role of IT systems and platforms is essential for the successful operation of any supply chain system, from the most fundamental to the largest and most complex. The orchestration of forecasts, suppliers, schedules and the optimization of inventory levels all are predicated on using IT systems to the fullest advantage possible (Albors-Garrigós, Hervas-Oliver, Márquez, 2009). IT also enables greater security levels by limiting access to specific systems by the role or responsibility level of each member of an organization
A. Government Agencies – The Federal Communications Commission, is a commission that defines the broadband to meet customer broad communication needs and desires.
Amazon Web Services is a cloud computing platform which was to provide online services to websites (Rouse, 2014). Amazon is comprised of software development and customer service centers around the world (Rouse, 2014). At Amazon, workers are encouraged to tear apart one another’s ideas in meetings, toil long and late and held to unreasonably high standards (Kantor & Streitfeld, 2015).
Supply chains must be managed to coordinate the inputs with the outputs in a firm to achieve the appropriate competitive priorities of the firm’s enterprise processes. The Internet offers firms an alternative to traditional methods for managing supply chains. A supply chain strategy is essential
For most multinational corporations, one common challenge goes with the business expansion into other countries – the localization effort to enable implementation of their business strategy and value proposition into targeted country. Amazon is no exception while trying to enter the China market. Attracted by the outstanding 1.3 billion populations, stronger consumption ability, and increasing acceptability of online shopping, China has become the most potential market in the world. The key to achieve international e-commerce success lies in understanding the critical factors that affect customers’ decision of whether to adopt the services. Generally speaking, they are product selection, service
The objective of this case study is to outline and provide a brief overview of Amazon.com’s (Amazon) mission, strategic direction, core competencies, relied technologies and their future impact of new technologies, and how management and use of consumer data will impact future business.
This paper reviews the supply chain management practices of Amazon.com (AMZN) and highlights findings in the framework of a Strengths – Weaknesses – Opportunities – Threats (SWOT) framework.
Every company has their own supply chain in order to sort or produce goods. However, the company needs to manage supply chain to maximize its highest benefits. By having effective supply chain management, the company can ensure that the right product or service will be available at the time to the right place and at the right price (Kamal 2007). Amazon is one of the companies that have best supply chain practices in order to respond high level of responsiveness for the customers. Thereby, this paper explains about Amazon Company, analysis of Amazon’s supply chain, recommendations and barriers to implement will be discussed.
The following research paper is based on The Home Depot Company, one of the largest home improvement specialty retailers in the United States. In addition, the analysis also includes supporting feedback obtained through an interview session with the Home Depot’s Operations Manager, Jaime. Jaime has a bachelor’s degree in business administration and has been employed by the company for eleven years. He possesses the knowledge and skills that are necessary to administer the supply chain management process for the 605 W. Morrison Rd. location store. The Home Depot has utilized several IT technologies that have helped the company gain core competencies in supply chain management processes. They have adopted the Omni-Channel Supply
In 2000, Amazon and Toys-R-Us entered into a symbiotic agreement that would benefit both corporate entities. Both companies had recently had unimpressive fiscal years due to differing issues. Toys “R” Us struggled with poor order fulfillment. Although they were equipped with enough merchandise, other issues kept them from being able to get orders to customers in a timely manner; especially during the busy holiday season. Conversely, Amazon was forced to write off $34 million because of a miscalculation in inventory and had orders that could not be honored (Ouchi, 2004). Following these debacles, both organizations felt that joining
Amazon.com, Inc. is the leading online retailer of books. The ¡§Earth¡¦s Biggest Bookstore¡¨ opened its virtual doors in July 1995 with a mission to use the Internet to transform book buying into the fastest, easiest, and most enjoyable shopping experience possible1. Amazon still holds their commitment to customer satisfaction and the delivery of an educational and inspiring shopping experience in high regard today and it is now one of the most widely known, used and cited commerce sites on the World Wide Web (WWW).
Amazon.com, Inc. (Amazon.com), incorporated on May 28, 1996, is an American electronic commerce company with headquarters in Seattle, Washington and is the largest Internet-based retailer in the United States (Ungar, 2014). Amazon.com started as an online bookstore, but soon diversified, selling DVDs, Blu-rays, CDs, video downloads/ streaming, MP3 downloads/streaming, software, video games, electronics, apparel, furniture, food, toys and jewelry (Ungar, 2014). The company also produces consumer electronics—notably, Amazon Kindle e-book readers, Fire tablets, Fire TV and Fire Phone — and is a major provider of cloud computing services (Ungar, 2014).
Electronic business (e-business), the use of Internet-based computing and communications to execute both front-end and back-end business processes – has emerge as a key enabler to drive supply chain integration. As an overarching business concept, e-business has received increasing attention from academics and practitioners alike. E-business solutions in general are seeking to enhance supply chain effectiveness and efficiency through the automation of business processes. The adoption of e-business can result in benefits such as higher transparency, reduced transaction, manufacturing and other cost, reduced
While researching on line I came across an article that described the affect that the Internet is having on supply chains today. “E-enabled supply chain management is fast emerging as a core strategy that organizations worldwide are adopting for sustainable business advantage”. (4)
Supply Chain Management (SCM) aims at integrating all corporate activities to improve relationships at all levels (internal operations, supplier networks, and distribution channel) to meet the competitive edge and satisfy the customer. In order to build an effective and complete business process that supports SCM, information among all business partners need to be shared. Information sharing through the Internet reduces the gap for business-to-business (B2B) commerce by enabling seamless integration with enterprise processes among partner corporations.
Also, Amazon has emphasized on building “several distribution centers around the world to hasten deliveries”(Hof and Himelstein, 1999). Coupled with its software it provides a “laser-like focus on the buying experience”(IT Business Edge, 2012). Such a system and service is what draws customers towards Amazon and subsequently retains them.