Question

Analyze and discuss Amazon’s approaches and successful implementation of processes. How can you embed some of the Amazon strategies into your inport/export company? As you get into the logistics of delivering your product, what can you learn from Amazon and incorporate into import/export?

Answer 1

Amazon is one of the largest e-commerce service providers in the world.It sells almost everything like from FMCG ?products to even larger products in its site.Amazon's logistics strategy is one of the best in industry.It adopted a more customer centric approach for its services. Focussing on its supply chain strategy we can analyze how amazon grown over the years to become a giant in e-comerce.Amazon is a service provider to customer and also it is producung some of the products like kindle, and smart devices under its name which it has been marketting from a long period.Amazon has built warehouse all over the world to reach customer faster and provide an in time deliver to consumers.In beginning periods Amazon started keeping every unit of stock in its warehouse .But this ultimately increased its inventory holding cost as some products demand were not that much .After analyzing over theyears of data it came to an conclussion that the slow moving goods to be directly shipped from the supplier in case a customer purchhases that product online and Amzaon warehouses will only hold thye stock of higher demand products.This strategy of supply chain not only saved a considerable amount of cost but also made it possible to analyze it's business. Amazon adopted high leve; machine learning algorithms and AI to anlyze thye future demend of variety of products and which is helping it to focus more on those products and accordingly manipulating the warehouse place.Its optimization strategy for making warehouses which can serve more to more consumers is helping to gain a competitive advatage.

If we are planning an import/export business we can adopt the analysis and optimization strategy for our warehouse location and capacity which will save cost for our business.Analyzing the past data and predicting a future demand for certain product will surely help us to segment our product actegory.This will help business to grow and increase the customer satisfaction.We can focus on optimizing our facility locations to reach out our customer base easily while delivering goods.Amazon's supply chain strategy will help us regarding this.