Question

In: Operations Management

Why is Amazon so specific about receiving inventory from vendors? What are the emphases in receiving...

Why is Amazon so specific about receiving inventory from vendors? What are the emphases in receiving shipments from vendors? Why do they have a problem solver?

Solutions

Expert Solution

Receiving inventory from vendor is so specifi because Amazon is a market place for vendors and their whole business is driven through the quality of inventory or products. They are specifi about storage of inventory ( like library type shelving for media, specific secured or climate controlled areas for high value goods and food items. ). Thus in every aspce of receiving inventory they will check the quality of inventiry, authenticity , as per the agreement.

Receiving shipments from vendors will be on the basis of vendir agreement. It will be having stipulated lead time, receving locations, incoterms associated with it ( International commercial terms like Door To Door delivery, Door to Airport Delivery etc.)..They have a problem solver interms of colloborative decision making, understanding the complexitities involvedin vendor management, artificial intelligence and human based decision making and ensuring the on time receiving of inventories etc.


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