Amazon.Com Supply Chain Management

1550 Words Apr 11th, 2013 7 Pages
Running head: Amazon.com Supply Chain Project

Amazon.com Supply Chain Project
Jarrel Nightingale
JNightingale2@CapellaUniversity.edu
Capella University
BUS3004: Supply Chain Management
Professor Dr. Robert Goldwasser
December 10, 2012

Amazon.com Supply Chain Project
Introduction
In today’s society, Online Shopping and the industry of e-commerce has become very popular and mainstream. Many individuals have integrated online shopping into their normal routine and have replaced traditional shopping altogether. Online shopping has become so popular, there has been a shopping holiday called “Cyber Monday” which is the equivalent to “Black Friday.” Traditional brick and mortar retail stores are now forced to
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Amazon.com’s supply chain management applications communicate in real time when an order is placed and assigns shipping warehousing and cost based on location (Bacheldor, 2004). When the average company ships internationally the response time is typically in excess of 14 days and the cost to expedite takes any potential savings from purchasing online go away.
Importance of Aggregate Planning Amazon.com is beginning to aggregate other e-commerce that are linked via strategic placement and investments. The vision is to make it so customers don’t have to go elsewhere to shop very often especially online (Scally, 2000). The reputation it has is so strong that any association with Amazon.com helps create an impression of validity and success for anyone that chooses to partner with them. Amazon has one of the most-sophisticated supply-chain systems in the world, and it was all built from scratch. Homemade applications handle nearly every aspect of its supply chain: warehouse management, transportation management, inbound and outbound shipping, demand forecasts, inventory planning, and more. In the last four years, Amazon has worked to minimize the need for human intervention in its supply-chain processes, such as manually inputting sales forecasts into an inventory-management system (Bacheldor, 2004). Today, Amazon 's supply-chain apps communicate in real time, a rarity when most companies have to integrate
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