2. Make the change
• http://www.youtube.com/watch?v=LbcwsSZCKuI

3. Company Profile
US-based multinational e-commerce company.
World’s largest online retailer
Founded by Jeff Bezos in 1994 and launched
online In 1995 as amazon.com
Amazon.com started as an
online bookstore, but soon diversified, selling
DVDs, CDs, MP3 downloads, software, video
games, electronics, apparel, furniture, food
The company also produces consumer
electronics and is a major provider of cloud
computing services
Has acquired companies like
IMDB, zappos, pets.com, shelfari, woot etc
Amazon web services drives companies like
netflix, dropbox, foursquare, zynga, reddit, and
yelp

4. Growth
12 60
Gross Income ($bn) 9.64 50
Revenue ($ bn) 48.08
10
8 40
6.99 34.2
6 5.1 30 24.51
3.93 19.17
4 3.08 20 14.84
2 10
0 0
2007 2008 2009 2010 2011 2007 2008 2009 2010 2011

5. Growth
Gartner Top 10 Supply Chain
Ranking 2010 2011 2012
1 Apple Apple Apple
2 Procter & Gamble Dell Amazon.com
3 Cisco Systems Procter & Gamble McDonald's
4 Wal-Mart Stores Research In Motion (RIM) Dell
5 Dell Amazon.com Procter & Gamble
6 PepsiCo Cisco Systems The Coca-Cola Company
7 Samsung Electronics Wal-Mart Stores Intel
8 IBM McDonald's Cisco Systems
9 Research In Motion PepsiCo Wal-Mart Stores
10 Amazon.com Samsung Electronics Unilever
Moved from Rank 10 to 2 in 3 yrs
It operates 7 websites that support
their business operation globally
and offers 20 million items for sale

6. Customer Centric

7. Replenishment Strategy
Reflects an understanding of customers’ needs – more variety AND lower cost
Offer wide range of products through the use of wholesale suppliers and independent
producers
To provide a two-day delivery time limit on most orders
EDI enabled customer tracking of shipments

8. Supply Network

9. Strengths
Customers can choose how their products are delivered
• USPS, UPS, Fed-EX, DHL for last mile delivery
• Trucking for long lead deliveries
Practices “bulk packaging” - Products ordered by customers at the same location
are delivered at the same time
Ensures truck loads (MOQs) are met
Keeps inventory at a minimum
• Stocks only bestsellers
• Warehouses in tax free states
Distribution centers carry only a few product categories
• Slow moving products managed by 3rd party sellers
• Decrease inventory obsolescence
Vendor Practices
• Doesn’t source more than 10% of inventory from a single vendor
• Still expects and gets significant discounts
• No long term contracts

10. Thank You