Information Technology and Supply Chain Management in Amazon.com

684 Words Feb 3rd, 2018 3 Pages
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…
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