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Running Head: SUPPLY CHAIN

Operations and Supply Chain Strategy of Ama on and !al "art #Name of the !riter$ #Name of the Institution$

Supply Chain

Table of Contents Introduction....................................................................................................................................4 Literature Review..........................................................................................................................5 The modern SCM aims to reduce uncertainties and risks to the compan ! aimin" to please the customer and ma#imi$e profits! brin"in" a "ain as a result of market and competitiveness. The central role of SCM is to reduce costs and improve relationships with suppliers and customers! reachin" sensibl s ner" in this process! keep a minimum stock as possible without risk of not meetin" a client for lack of product! havin" the ri"ht product at the ri"ht time and in the re%uired %uantit ............................................................................5 &ith the emer"ence of e'commerce! companies saw before them a new market. Man saw on the internet the solutions to all their problems! with little investment and hi"h profitabilit . (ut none of them could ima"ine what was later called )the burstin" of the Internet bubble!) which at the end of *pril +,,, led businesses unprepared for bankruptc . Those that survived! like *ma$on.com! are cases that teach us much about SCM................................................................................................................................................5 *ma$on.com has survived because of its concern with the client! not visuali$in" a virtual user! but a real customer! with address! livin" lon" distances! but with the same re%uirements and needs of the customer who lives a few miles or "oin" to a ph sical store. Thus it "rew and consolidated in several countries! while maintainin" the attitude of "ivin" due wei"ht to the suppl chain and value....................................................................................5 -ne of the secrets to the success of &al'Mart is its lo"istics mana"ement. In Canada! &al' Mart has three warehouses. the Meadowvale /-ntario0! the Cornwall /-ntario0 and the

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Cal"ar /*lberta0. 1or e#ample! the warehouse has an area of Meadowvale 2.+ million s%uare feet which includes 45!,,, pallets. 3ach store was "iven the replenishin" a number of stores and in some cases! the can speciali$e in the mana"ement of certain items! such as lin"erie. 4nless a special a"reement with suppliers! all items sold in stores pass throu"h distribution centers! &al'Mart! 556 of the "oods sold . &al'Mart Canada does not mana"e its warehouses. SCM Suppl ! a subsidiar of the multinational (ritish Tibbett 7 (ritten! is in char"e. 8is clients Tibett 7 (ritten account 9ap! :ike and I(M! the 4nited States and Carrefour supermarkets in 1rance! and "rocer stores Metro! ;uebec...............< More than half of the products delivered to Meadowvale in Cornwall or Cal"ar merel throu"h' service warehouse and are immediatel routed to the stores. In some cases! the opera' tion takes ten minutes. It was 22.,, when bo#es of to s for bo s arrivals b do$ens of doors. *n emplo ee has labeled them out of the truck! then the circulated on a conve or that winds throu"h the warehouse. *t the other end! cash have rushed into a truck! read for deliver in one of its stores. In fact this notion of speed is at the heart of mana"in" the suppl chain at &al' Mart. Initiall ! the purpose of the mana"ement of the suppl chain of the compan was achieve the "oods sold to customers faster than the time of pa ment of suppliers! short lo"ic cash mana"ement is the basis of lo"istics innovations...........................< =iscussion.......................................................................................................................................<
Overview of Amazon.coms Supply Chain................................................................................6 Amazon.coms Supply Chain Process......................................................................................9 Overview of Wal Marts Supply Chain......................................................................................9 ean an! A"ile Supply Chains...............................................................................................#$ Amazon.com an! Wal Marts Supply Chain Strate"y.............................................................#%

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Recommendations and Conclusion ...........................................................................................2>

Supply Chain

Operations and Supply Chain Strategy of Ama on and !al "art

Introduction Ama on()om In) is an International e*)ommer)e )ompany +ith its head offi)e ,ased in Seattle- !ashington Ameri)a( .he )ompany is the ,iggest online retailer in the glo,e- and ,egan operations as an online ,oo/store( It then mo0ed on to other produ)ts su)h as 121s- C1Smusi)- ele)troni)s- games- )lothing- furniture- 3e+elry and food( In addition to this- Ama on produ)es )onsumer ele)troni)s su)h as the +idely popular 4indle e*,oo/ reader and ta,let reader and is also the largest pro0ider of )loud )omputing ser0i)es( !al*"art is the largest retailer in the +orld- and has )hains of outlets around the glo,e( It the se)ond largest )orporation in the +orld- and also the most 0alua,le )ompany e0er( Unli/e Ama on()om it operates from a ,ri)/ and mortar model( !al "art pur)hases its goods from supplier all around the +orld in order to get the ,est pri)es and in)reases their s)ope of ,usiness(

Supply Chain

Literature Review .he modern SC" aims to redu)e un)ertainties and ris/s to the )ompany- aiming to please the )ustomer and ma6imi e profits- ,ringing a gain as a result of mar/et and )ompetiti0eness( .he )entral role of SC" is to redu)e )osts and impro0e relationships +ith suppliers and )ustomers- rea)hing sensi,ly synergy in this pro)ess- /eep a minimum sto)/ as possi,le +ithout ris/ of not meeting a )lient for la)/ of produ)t- ha0ing the right produ)t at the right time and in the re7uired 7uantity( !ith the emergen)e of e*)ommer)e- )ompanies sa+ ,efore them a ne+ mar/et( "any sa+ on the internet the solutions to all their pro,lems- +ith little in0estment and high profita,ility( 8ut none of them )ould imagine +hat +as later )alled 9the ,ursting of the Internet ,u,,le-9 +hi)h at the end of April &::: led ,usinesses unprepared for ,an/rupt)y( .hose that sur0i0ed- li/e Ama on()om- are )ases that tea)h us mu)h a,out SC"( Ama on()om has sur0i0ed ,e)ause of its )on)ern +ith the )lient- not 0isuali ing a 0irtual user- ,ut a real )ustomer- +ith address- li0ing long distan)es- ,ut +ith the same re7uirements and needs of the )ustomer +ho li0es a fe+ miles or going to a physi)al store( .hus it gre+ and )onsolidated in se0eral )ountries- +hile maintaining the attitude of gi0ing due +eight to the supply )hain and 0alue(

Supply Chain

One of the se)rets to the su))ess of !al*"art is its logisti)s management( In Canada!al*"art has three +arehouses: the "eado+0ale <Ontario=- the Corn+all <Ontario= and the Calgary <Al,erta=( >or e6ample- the +arehouse has an area of "eado+0ale %(& million s7uare feet +hi)h in)ludes 5;-::: pallets( ?a)h store +as gi0en the replenishing a num,er of stores and in some )ases- they )an spe)iali e in the management of )ertain items- su)h as lingerie( Unless a spe)ial agreement +ith suppliers- all items sold in stores pass through distri,ution )enters- !al* "art- @;A of the goods sold ( !al*"art Canada does not manage its +arehouses: SC" Supply- a su,sidiary of the multinational 8ritish .i,,ett B 8ritten- is in )harge( His )lients .i,ett B 8ritten a))ount Cap- Ni/e and I8"- the United States and Carrefour supermar/ets in >ran)e- and gro)ery stores "etro- Due,e)( "ore than half of the produ)ts deli0ered to "eado+0ale in Corn+all or Calgary merely through* ser0i)e +arehouse and are immediately routed to the stores( In some )ases- the opera* tion ta/es ten minutes( It +as %%::: +hen ,o6es of toys for ,oys arri0als ,y do ens of doors( An employee has la,eled them out of the tru)/- then they )ir)ulated on a )on0eyor that +inds through the +arehouse( At the other end- )ash ha0e rushed into a tru)/- ready for deli0ery in one of its stores( In fa)t this notion of speed is at the heart of managing the supply )hain at !al* "art( Initially- the purpose of the management of the supply )hain of the )ompany +as a)hie0e the goods sold to )ustomers faster than the time of payment of suppliers- short logi) )ash management is the ,asis of logisti)s inno0ations(

Discussion Overview of Amazon.coms Supply Chain

Supply Chain

Ama on has al+ays stri0ed hard to impro0e its supply )hain operations ,y adopting pra)ti)es that add 0alue to its ,usiness operations( .he su))ess of Ama on is mu)h due to the enri)hment of the shopping e6perien)e of its usersF ho+e0er its sustaina,ility is dependent on supply )hain- order fulfillment and the maintenan)e of admired pri)ing strategies( A huge sour)e of )ompetiti0e ad0antage for Ama on its not only manages and ships its o+n sto)/ ,ut also of other retailer li/e .arget and ?ddie 8auer( 1ue to this- they are a,le to a)hie0e e)onomies of s)ale <A/an et(al- &:%%- pp(;G*H&=( .he impa)t of Ama on in the retail se)tor is su)h that )onsultant pit)h to their )lients that they +ould help them a0oid getting IAma onedJ( Ama on has a uni7ue approa)h to+ards their supply )hain +hi)h ,egins from their )ustomer and mo0es ,a)/+ards( .he produ)ts sho+n on the site are su)h that it is li/ed ,y their )ustomers and they enhan)e their supply net+or/s ,y in0esting in ne+ te)hnologies( .he )enters that manage the deli0eries are mostly lo)ated near airports( Ama on has multiple )enters in ma3or )ities a)ross the +orld to manage its glo,al net+or/( .he )enters are also used ,y third* party supplier for their +arehousing and order*fulfilling needs( !arehouses are huge and employ people in hundreds( .he responsi,ilities of these employees in)lude four ,asi) tas/sF unloading and )he)/ing in)oming goodsF putting the goods in storage and ma/ing a re)ord of their lo)ationF sele)ting goods from their re)orded lo)ations to )omplete a single shipment- and then shipping the goods <Chopra B Sodhi- &:%&=( A )entrally lo)ated )omputer has the re)ords of +here the goods are pla)ed and )hal/s out the routes for the employees +ho ha0e to )olle)t these goods( ?mployees ha0e handheld de0i)es +hi)h )onne)t them to the )entral system and e0aluate their pa)e of mo0ement( A pi)/er is e7uipped +ith a )art and may ha0e to )ommute %: miles or more in a single day(

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1i"ure 2 An G::-::: s7(ft distri,ution )enter in Coodyear- Ari ona(

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Amazon.coms Supply Chain Process In a nutshell- the diagram a,o0e illustrates the supply )hain net+or/ of Ama on in the United States( .he first step is +hen the )ustomer pla)es the order from hisKher lo)ation( .he order is then assigned to the nearest distri,ution )enter( .he order sho+n in red is then ta/en out from the in0entory and pla)e on the )on0eyors +hi)h go through the )entral distri,ution )enter and are arranged ,y ,ar )odes( .he ,ar )odes identify the order of the )ustomerF the )ontents of the pa)/ages are e6amined- ,o6ed- +eighed and deli0ered to the end )onsumer through US postal ser0i)e and United Par)el Ser0i)e( "any of the produ)ts li/e ,oo/s and musi) are a0aila,le to the )ustomer online only( ?* ,oo/s )an ,e ,ro+sed- pur)hased and do+nloaded( .he Ama on 4indle )ompliments those ?* ,oo/s that are pur)hased ,y the )ustomer to fa)ilitate their reading( Ama on has to ensure that the do+nload is se)ure- and the produ)t )annot ,e )opied or redistri,uted( .his is a ma3or )on)ern +hen dealing +ith su)h produ)ts( On the other hand- the deli0ery of these produ)ts is simple and does not re7uire mu)h hassle <Andal*An)ion et(al- &:%&=(

Overview of Wal Marts Supply Chain >e+ )ompanies in the +orld so +ell understood the importan)e of logisti)s as the Ameri)an !al*"art- the largest retailer in the +orld- is that for years +ith its thousands of stores )onne)ted online- and e0ery time a ,rand produ)t passes through the ,o6- one learns and automati)ally programs the sto)/ repla)ement( .he )ompany see/s to ta/e )are of materials handling throughout the produ)tion )hain- ,e)oming more effi)ient and syn)hroni ed +ith the mar/et- +ith lo+er )osts and ,etter prepared to )ompete on all fronts(

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One of the ,iggest )hallenges is the management +hi)h in0ol0es team ,uilding for pro)ess management in the supply )hain- +ith a dedi)ated effort of )ommitted people +ho possess the 0irtue of persisten)e( .he teams ser0e to ,rea/ do+n the organi ational ,arriers and in0ol0e all those +ho parti)ipate in a)ti0ities related to the pla)ement and distri,ution of produ)ts in the mar/et( .he su))ess of !al*"art is due to the understanding of e6tending its operations ,eyond their organi ational ,oundaries- in0ol0ing e6ternal parties that are partners in the supply )hain- i(e- mem,ers of these teams ad0an)ed )oordinate- )ommuni)ate and )ooperate intensi0ely( 8y ,eing in )onstant )hange due to the different needs )reated ,y the )ompetiti0e en0ironment- the )ompany needs to address issues of supply )hain strategi)ally- see/ing opportunities to e6plore 3ointly and share ,enefits fairly among its mem,ers- ho+e0er- o,sta)les ha0e to ,e o0er)ome- in)luding: resistan)e to e6)hange of information- la)/ of )ooperation ,et+een )ompanies and limited 0ie+ of the supply )hain( .he )hallenges- performan)e measurement is sho+n as a te)hni7ue to assist the organi ation in the integration of its internal fun)tions- in sharing information- in e0aluating the results a)hie0ed and the )oordination ,et+een supply )hain mem,ers( .he !al*"art used the logisti) )enter as part of its )ompetiti0e strategy to ,e)ome the leading glo,al net+or/ of retail( .herefore it has an important role- parti)ularly in todayLs glo,ali ed +orld- ,e)ause it is a /ey fa)tor to a)hie0e su))ess in the fa)e of fier)e )ompetitionin +hi)h all pro)esses and de)isions are analy ed and integrated into a +hole( One of the ,iggest initiati0es ta/en ,y !al mart for its supply )hain +as the 2"I <2endor "anaged In0entory=( .he manufa)turers ,ear the responsi,ility for arranging their produ)ts in the +arehouses of !al mart hen)e impro0ing the order fulfillment on retail(

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!ith logisti)s- !al mart no+ has an a))urate tool for measuring refle)tions of good planning in the distri,ution of their goods- ,oth as regards the e6ternal aspe)ts- )onsumers and suppliers- as its internal aspe)t- flo+ materials and physi)al storage of ra+ materials and finished produ)ts( .his allo+s the )ompany to ha0e the a,ility to redu)e )osts and in)rease their )ompetiti0eness in the fa)e of )ompetitors- this ne+ reality of the glo,al mar/et- +here )ost redu)tion fa)tors are essential for )ontinued operations( 8y o+ning its o+n distri,ution system- +hi)h in)ludes 0ehi)les and distri,ution )enters and )onstant use of the )on)ept of )ross*do)/ing- or transfer +ithout storage <in)oming and outgoing=- operation rapid mo0ement of finished produ)ts for shipment- ,et+een suppliers and )ustomers( In relation to gro+th and profita,ility- !al*"art has ,een su))essful- due in large part to this ne+ stru)ture of the supply )hain( As a ,usiness fo)used on logisti)al issues- from the ,eginning to !al*"art sought to ma/e large in0estments in information systems in transport 0ehi)les- distri,ution )enters and impro0ement of the )ontrol of the supply )hain- a)hie0ing there,y redu)ing )osts and minimi ing )y)les- ma/ing pri)es more attra)ti0e to )ustomers and )ontri,uting definitely impro0ed ,usiness results( !ith hea0y in0estment in information te)hnology )omes to tra)/ sales of ea)h produ)t indi0idually- +hi)h ensures- among other ,enefits- the immediate repla)ement of in0entories( .hrough these resour)es and manage supply )hain mean that it is the right produ)t at the right time and +ith the lo+est pri)e to meet the glo,al mar/et( !almart put into pra)ti)e the first )ompany +ide use of the Uni0ersal Produ)t Code ,ar )odes( .hese )odes allo+ for store le0el information to ,e gathered and e6amined( .his then lead to the )ompany designing a Retail Lin/F an enormous data,ase( Using a +orld+ide satellite

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system- Retail Lin/ is lin/ed to analysts +ho estimate the demand of the suppliers to the net+or/ of suppliers- and also display the a)tual sales data from )ash tills to the distri,ution )enters of !almart( Sharing of information is a /ey to the su))ess of !almarts operations as e0ery person in in0ol0ed in the supply )hain is on the same page <.an et(al- &:%:- pp('HH*'@5=( .his strategy helps them a0oid ma/ing in)orre)t fore)asts +hi)h )auses issues su)h as the 8ull +hip ?ffe)t( Additionally it helps them in maintaining an informal )ooperation among retail outletsdistri,ution )enters and suppliers( .here is lesser dependen)y on )entral )ontrols( "oreo0er- the supply )hain of the )ompany tra)/s )ustomer demand and pur)hases allo+ing them to maintain an optimum ,alan)e ,et+een demand and supply( !almart uses R>I1 <Radio Infrastru)ture Identity .ags=- +hi)h utili es the numeri)al )odes to s)an ,ul/ in0entory mo0ing along the supply )hain +ith lesser effort( Smart tags are also usedF they are handheld s)anners that ma/e employees a+are of the sto)/ that needs to ,e repla)ed so the shel0es are /ept +ell sto)/ed and in0entory is in )he)/( .o ensure )omplian)e +ith the poli)y al+ays pro0ide )ustomers +ith e0eryday lo+ pri)esredu)tion in promotional )ampaigns- in)reasing the sta,ility and predi)ta,ility of demand- the logisti)s of !al*"art has a /ey role to a)hie0e good results and should al+ays ,e +ell stru)tured- deli0er the ser0i)es effi)iently and- most importantly- ,e regarded as a )ore )omponent of the mar/eting strategy( .hese ser0i)e standards allo+ !al "art to meet demand and ,uilding positi0e )ustomer relationship <Mu et(al- &:%&- pp(E;5*EE'=( >or the )ompany !al*"art rea)hed the le0el of e6)ellen)e that has )urrently had to ha0e a logisti)s tool that align the entire )omple6 system through information te)hnology- in order to )ontrol sales and in0entory- allo+ing a )ontinuous e6)hange information ,et+een stores and suppliers and to guide other system )omponents(

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!al*"art )ontinually fo)uses on the effe)ti0eness of the supply )hain and less on ad0ertisingF the refle)tion is lo+er )ost and )an offer pri)es on a0erage lo+er than )ompetitors( !al*"art uses theory that logisti)s is a system ,e)ause it is planning to ser0e its )ustomersemployees training and 7ualified- ma/es use of information te)hnology to integrate operationshas performan)e indi)ators ensuring that the o,3e)ti0es are a)hie0ed- demand fore)asts and profita,ility of ea)h segment( Long*term relationship +ith its /ey suppliers o0er the long term and intensi0e e6)hange of information demand is one of the main fa)tors of its su))ess <Lee&:%:- pp(E&*E@=( !al*"art )omes through long*term relationship +ith its /ey suppliers- )onta)ts through high*0olume long*term and intensi0e e6)hange of information demand- ensuring in this +aye)onomies of s)ale and greater predi)ta,ility for suppliers( Although it is an e0ol0ing )on)eptrestri)ted to the most ad0an)ed )ompanies in the +orld- !al*"artNs supply )hain management has already ,een adopted for some time +ith su))ess- a)hie0ing e6)ellent results in terms of gro+th and profita,ility- largely ,y le0erage it has a)hie0ed +ith its differentiated stru)ture of relationships in the supply )hain( .he main o,3e)ti0e of supply )hain management is to get the ,est )ustomer ser0i)e +ith the lo+est possi,le total )ost( >or these o,3e)ti0es to ,e a)hie0ed it is essential to impro0e the performan)e of ea)h of the internal pro)esses of enterprises )hain )omponents( 8ut this 3ust is not enough internal effi)ien)y( It is ne)essary to manage the intera)tions ,et+een the ,usiness pro)esses of ea)h of the elements of the )hain( It is 0ital that intensi0ely use the fa)ilities pro0ided ,y information te)hnologies- aiming to ma/e de)isions +ith less ris/ margin- operating +ith the highest le0els of effi)ien)y- and )ommuni)ate +ith )ustomers and suppliers in the ,est +ay possi,le(

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.hrough integration- supplier- manufa)turer and distri,utor so that the produ)t is produ)ed and distri,uted in the right 7uantities- to the right lo)ation at the right time in order to redu)e )osts for the produ)er and distri,utor rea)hing the le0el of ser0i)e desired ,y the )ustomer( !al*"art has redu)ed )osts ,y in0esting in modern tru)/s and distri,ution )enters and a ,etter le0el of )ustomer ser0i)e +ith the segmentation of ser0i)es offered( 8y adopting the )on)ept of SC"- the organi ation e6panded its 0ision and )an ,e)ome more agile and more fle6i,le than )ompetitors- +hi)h +ould ,e e6tremely desira,le(

Lean and A ile Supply Chains .he time fa)tor has ,een a )ompetiti0e +eapon for )ompanies( .he a,ility to meet the demand for e0er smaller time and syn)hroni e supply a))ording to demand spi/es and shortages is of paramount importan)e in this era of time*,ased )ompetition( >or greater rea)ti0ity to needs of the mar/et it ta/es more than speed( It re7uires agility( Agility in0ol0es organi ational stru)tures- information systems- logisti)s pro)esses and- in parti)ular- reasoning( .he /ey feature of agility is fle6i,ility( Agility should not ,e )onfused +ith leanness <9,e lean9=( 8eing lean means doing more +ith less( .he term is often employed in go0ernment +here they apply 9 ero in0entory9- +ithin the )on)ept of 3ust*in*time( Parado6i)ally- many )ompanies ha0e adopted lean produ)tion as a pra)ti)e ,usiness and are also agile in their supply )hains( 1espite the lean agility to ,e an element in )ertain )ir)umstan)es- it alone does not ena,le the organi ation to respond more 7ui)/ly )onsumer needs( .here are )ertain )onditions in +hi)h a lean management is ade7uate parti)ularly +hen demand is e6pe)ted- there is little 0ariety of produ)ts and produ)tion 0olume is high( Pro,lems arise +hen +e implemented the philosophy lean in situations +here

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demand is less predi)ta,le- no re7uirement for large 0ariety and 0olume of ea)h type of )ommodity is lo+ <.o+ill B Christopher- &::&- pp(&@@*':@=( One of the ,iggest )hallenges that )urrently impose on organi ations is the need to respond to in)reasing le0els of 0olatility in demand( >or 0arious reasons- the life )y)les of produ)ts and te)hnology are de)reasing- )ompetiti0e pressures for)e more often- )hanges in the produ)ts- and 0ariety as )onsumers demand e0er seen( And to meet this )hallenge- organi ations need )on)entrate their efforts so that they get greater fle6i,ility in order to respond in shorter time inter0als- ,oth in terms of )hange of 0olume and in terms of )hanging 0ariety( >or a truly agile- the 0olatility of demand is not the pro,lem- its pro)esses and organi ational stru)ture- as +ell as relationships in the supply )hain- allo+s it to ta/e a))ount of any )laims that may arise <Ross- &:%:= "o,ility- in the sense of a,ility to align supply and demand- is not ne)essarily synonymous +ith 9do+nsi ing9( .he )on)ept of lean produ)tion see/s to minimi e the )omponent in0entory and +or/ in progress- see/ing an en0ironment 3ust*in*time +hene0er possi,le( Although the 9+iping9 )an ,e an element of 9agility9 in )ertain )ir)umstan)es ,y itself does not allo+ organi ations to meet the )ustomerLs needs 7ui)/ly( In fa)t- one )ould argue thatat least until re)ently- some se)tors- +ith all its do+nsi ing- +ere less agile in the mar/et <Mia B .ang- &:%%- pp(5@;*;%&=(

Amazon.com and Wal Marts Supply Chain Strate y !al*"art has the 0ersatility of deploying ,oth the lean and agile supply )hain strategies( .heir )ore strategy of lo+ pri)es has ,een a)hie0ed through )ontinuous inno0ations( .hey are one of the most )ost effi)ient operators in the industry( On the other hand- they are also 7uite

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agile )ase in point is the post @K%% era +here they +ere 7ui)/ to adapt to supplying Ameri)a ,ased mer)handise in a 0ery short span of time( .hey ha0e not used )learan)e sales to get rid of e6)ess sto)/s ,e)ause their planning and e6e)ution has ,een a))urate( >or any organi ation to ,e su))essful- it has to ,e )lear as to ho+ it deploys the lean and agile ta)ti)s in a))ordan)e +ith the )hanges in the mar/et( .he en0ironment is dynami) and e0er )hanging( Only those firms )an sur0i0e that )an fore)ast the )hanges- and respond to them in a timely manner( !al "art +as the first retailer to adopt )ross do)/ing +hi)h in0ol0es unloading the )ontent of one shipment and loading it +ith goods for out,ound shipment( .his )auses the )ompany to ha0e little sto)/ for +arehousing and in)reases the effi)ien)y( .he )ore ,usiness o,3e)ti0e of !al "art is to deli0er the )ustomer +ith the ,est produ)ts at the least minimum time so that they do go empty handed +hen they 0isit a retail outlet( .he 0alue that is deri0ed from shopping at !al*"art is from the e6perien)e that lies in the a0aila,ility of the produ)ts and at the ,est pri)e( .hese o,3e)ti0es are a)hie0ed through effi)ient supply )hain pro)esses( Ama on()om has to ,e fle6i,le as +ell as loo/ to )ut )osts as it operates online( .he +e,site offer free shopping on order that is a,o0e O&;( In order to differentiate its offering from its )ompetitors the ,usiness had to engage in a supply )hain ,attle +ith printers that issued the ,oo/s on demand in order to support its same day shipping model( Initially they used to supply ,oo/s- and deli0ering a )opy in full and on time +as essential ,e)ause the )onsumer )ould o,tain any ,oo/ from the lo)al ,ri)/ and mortar ,oo/ store( Ama on opened its in house printing di0ision- 8oo/ Surge to ,e a,le to a)hie0e its o,3e)ti0e( Ama on has offered many offers to its )ustomer su)h as the >ree Super Sa0er Program +hi)h +as free shipping on orders and in &::; it )ame up +ith Ama on Prime- a t+o*day shipping program( .hese t+o initiati0es +ere supported

Supply Chain %H

,y shifting the lo)ations of the distri,ution )enters and redesigning logisti)s( .his is +here the supply )hain had to ,e agile- and in order to /eep the operations sustaina,le there is a need to ,e lean( .he ,oo/ )ategory has ,een one of the /ey dri0ers of gro+th for this )ompany- and e0en +ith the introdu)tion of the 4indle Ama on has ,een loo/ing to pro0ide features that enhan)e the e6perien)e of its )ustomers(

Recommendations and Conclusion !al "art and Ama on operate on different ,usiness model yet they are )ompeting +ith one another on different fronts( .he /ey dri0ers of gro+th present in their operations are the a,ility to forsee the )hanges in the en0ironment and ,ring )ontinuous impro0ement( Inno0ation is an important aspe)t of supply )hain- +hi)h further enhan)es other /ey ,usiness areas su)h as "ar/eting( A )ompany )an de0elop a good ad )ampaign and offer the ,est produ)ts- ,ut if it does not ha0e a solid supply )hain net+or/- the ,usiness +ill fail to sustain its operations( As the +orld ,e)omes more )ompetiti0e and e)onomi) )onditions ,e)ome su)h that ma/e it hard for ,usiness to gro+ and sur0i0e supply )hain plays a /ey role in /eeping a ,usiness afloat( 8oth the ,usiness ha0e ,een proa)ti0e in adapting ne+ te)hnologies and pro)esses that ha0e added 0alue to their operations(

Recommendations !ith the emergen)e of e*)ommer)e and the myriad ,enefits it prromsies to organi ationsthere is a pressing need for ,oth Ama on and !al*"art impro0e on their supply )hain infrastru)ture ,y adopting ne+er and more inno0ati0e te)hnologies su)h as internet solutions( Ama on()om presents a fine e6ample of ho+ effi)ien)y of the supply )hain management system

Supply Chain %G

)an translate into greater profits and a ,igger mar/et share( !al*"art too has gro+n and )onsolidated in se0eral )ountries +hile maintaining the attitude of gi0ing due +eight to the supply )hain and 0alue( Ho+e0er- there is still great potential in e*)ommer)e and ,oth the )ompanies )an use it to multiply their profits(

Supply Chain %@

References

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