Скачать или смотреть How Amazon's Supply Chain Management Strategy Works ? Challenges with Solutions | SCM Case Study

The term Amazon supply chain essentially refers to Amazon’s entire process from product warehousing to inventory management, pricing, delivery, and more. Amazon has optimized each of these elements to ensure that everything is working smoothly and efficiently.

Sellers who sell on the Amazon Marketplace have different fulfillment options to choose from. Sellers can choose whether they want to handle fulfillment or let Amazon sort, package and ship products through their own fulfillment centers.

As a third party seller selling on the Amazon Marketplace you have the option to use Amazon’s fulfillment services:

Fulfillment by Amazon (FBA) – Sellers leverage Amazon’s fulfillment for products sold on the Amazon Marketplace
Or sell using your own fulfillment (FBM) – Sellers handle fulfillment for their products sold on the Amazon Marketplace

How Amazon supply & demand works
Recently, Amazon has made a shift in how they are communicating inventory demand to vendors with the addition of a new feature: Probability Level Demand Forecast (available in both ARA Basic & Premium).

Vendors are now being forced to make some critical decisions that will directly impact their stock levels for Amazon (and potentially impact the success of their entire business).

Although Demand will continue to be based on glance views, sales history, and projected demand for planned promotions, the forecast will now have three new probability forecasts for the vendor to choose from including:

P70 – Means there is a 70% chance Amazon will purchase the level of demand indicated or less and a 30% chance they will purchase more.

P80 – Means there is an 80% chance Amazon will purchase the level of demand indicated or less and a 20% chance they will purchase more.

P90 – Means there is a 90% chance Amazon will purchase the level of demand indicated or less and a 10% change they will purchase more.

Though Amazon might have one of the most well-tuned supply chain strategies in the world, the company’s never one to sit stagnantly. The retailer is preparing to start construction on its second headquarter location and its partnership with Whole Foods is set to change the food delivery game.

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