Amazon's Supply Chain Management Case Study
Amazon.com – “Work hard, have fun, make history”
Amazon.com is a well-known e-commerce and cloud computing company, whose current goal is to deliver products to customers worldwide in less than 60’.
Since its establishment, in 1994, the company implemented a strategy based on innovation and strong logistic programs. Amazon.com’s successful supply chain management was based on the importance of fast shipping and investment in infrastructure and technology.
Nevertheless, in 2013, Amazon.com had to face severe trust issues, as underlined by Jeff Bercovici (Forbes Staff) in Forbes Magazine (https://www.forbes.com/sites/jeffbercovici/2013/01/25/how-amazon-should-fix-its-reviews-problem/#38a6f0072bb0). The aforementioned issues seemed to hit the
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Over the last 50 years the company has accomplished to maintain more than 11,500 stores under 63 banners in 28 different countries and, at the same time, to provide e-commerce services in 11 different countries. Currently, Wal-Mart employs more than 2.3 million associates worldwide and manages to meet up to the needs of 260 million customers every week.
Wal-Mart is in Gartner’s top 20 supply chains since 2010 and “in 2012 Arkansas Business listed three things that evolved Wal-Mart’s success distribution practices: operating its own fleet of trucks and technology for improvement in efficiency, inventory management and product forecasting”.
It is hard to understand Wal-Mart’s success without looking at its history. In 1970, the company opened its first distribution store and, only five years later, it designed a computer system in order to maintain inventory control, showing how important development, technology and innovative ideas were for the
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A good brand understands that its service should be available, fast, reliable and at the right price. Customers when they are satisfied they will return to buy the same product and when they realise that the quality is the same they will try to inform others as well. Hence, the company not only gains good reputation and loyalty from the existing customers but it also increases its profits from the new customers. Wal-Mart and Amazon.com are great examples of well-designed and well-functioning supply chain management. Mistakes in the supply chain may cause disruptions and make the product unavailable as it happened with Adidas, the company suffered because the customers could not find the product on time at the right place. Mattel slightly changed its policy and the firm’s reputation was almost ruined. Such mishaps add further value to the importance of supply chain that consider the customer 's perspective, which in other terms is the whole Supply Chain
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