Amazon inventory management
- 1. INVENTORY MANAGEMENT Nargis Alokozay Aihik Barua Ankit Kundu Roopam Bhowmick Ashish Pawar Ankur Mittal Sukriti Jaiswal Atefah Sadat Hosseini Soumyadeep Das
- 2. INTRODUCTION AMAZON IS BORN 1994 Amazon goes public 1997 A Z 2002 • Customer Obsession rather than competitor focus • Passion for Invention • Commitment to operational excellence • Long-term thinking Mission Vision Values Our vision is to be earth's most customer- centric company; to build a place where people can come to find and discover anything they might want to buy online. • Customer Obsession • Ownership • Invent and Simplify • Learn and Be Curious • Hire the Best • The Highest Standards • Think Big • Bias for Action • Earn Trust • Deliver Results Jeff Bezos and his wife MacKenzie open an online bookstore in Seattle because of the city's reputation as a tech hub and because Washington's small population meant that they wouldn't have to charge sales taxes to most of their customer base. Amazon goes public at $18 per share, giving it a valuation of $300 million. In its filing, the company warns investors that it expects to report "substantial operating losses for the foreseeable future," due to heavy investments in technology and marketing Marketplace, Amazon's third party seller business, launches. New logo, with arrow running from the A to the Z in Amazon launches, reflecting desire to sell everything from A-Z.
- 3. 2012 Echo becomes widely available2015 2018 Amazon enters China2004 Amazon reaches a $1 trillion market cap Fuelled by investor enthusiasm for rising profits, Amazon's stock price rises enough to make the company briefly worth $1 trillion. Share price at $2039.51 Amazon pays $75 million to buy Joyo, the largest online seller of books and electronics in the growing Chinese market. But the division — renamed Amazon China — faced stiff competition. As of 2018, it only had 0.7% of online sales, trailing far behind Alibaba's 58.2%, according to e-Marketer. Amazon acquires robotics company Kiva Systems Amazon buys Kiva Systems, a Massachusetts-based maker of warehouse robots, for $775 million. Allows Amazon to amp up automation at its fulfilment centres, delivering products faster and with less need for human staff. Amazon later terminated Kiva's client relationships with retailers like Office Depot and the Gap in order to keep the technology to itself After unveiling its first smart speaker in 2014 to select customers, Amazon puts the Echo in 3,000 stores nationwide just in time for the holiday season. The Echo is the platform for Alexa, Amazon's virtual personal assistant, and therefore the key to a wealth of consumer data and purchasing decisions.
- 4. #1 Poor Supply Chain Management-Problems 4 1. Quality and Availability suffers 2. Purchase arrangements are threatened. 3. Resources are taxed. Major things can cause the poor SCM - • Suppliers Mistakes - Bullwhip effect and Improper communication can lead to relationship breakdown through resentment which might take a long time to resolve or completely broken. • Process Inefficiencies - If not periodically revised and optimised high danger of things would not work optimally.
- 5. #1 Poor Supply Chain Management-Solutions 5
- 6. #2 Running Out of Stock-Problems 6 Running Out of Stock Sales Velocity Monitoring all sales point Factoring in holidays • Sales Velocity – It consists of the number of units you sell during a given time period.Not monitor sales velocity can run Amazon into big trouble. • Multiple sellers – listing products through other sales outlets can be a problem if Amazon doesn’t figure out precisely how to allocate their stock across the multiple sellers • Not factoring Holidays/seasons-Amazon Global Store ships products internationally, they need to be fully aware of international holidays such as Chinese New Year and Ramadan are popular ones likely to spike orders.
- 7. #2 Running Out of Stock-Solutions • Decrease Sales Velocity – limit any PPC ads, marketing campaigns and use look ahead to gauge how quickly to restock • Charge higher for each product – This ensures to bring in more money per item while reducing sales. • Use Amazon Seller Central – sends e mail alerts about the inventory but inapplicable if you sell across multiple channels.For multiple channels, use Skubana which identifies your safest sock level. 7 Running Out of Stock Decrease Sales Velocity Charge Higher for each product Use Amazon Seller centre
- 8. #3 Incorrect pricing and description-Problems 8
- 9. 9 #3 Incorrect pricing and description-Solutions
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- 11. Conclusion • Amazon’s success is, its ability to integrate the flow of information with the quality and speed of physical delivery. • Amazon’s supply chain management is committed to decreasing cost and increasing profitability. • Supply Chain plays an important role in a modern digital commercial environment. • Focusing on each step of the Supply chain will avoid a bad reputation, for instance, bargaining with suppliers, control the manufacturing process and carefully monitor the sales velocity timing. • To improve SCM practices, it is a must to promote information sharing, planning, and forecasting for the overall performance of the company. • Investing in technology to build capacity and capability, the global successor being a customer-centric company so need to go along with keeping the innovative progression of technology using Data Mining techniques and software. • The latest supply chain technologies to maintain their supply chain the clear market leader. 11
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