Advantages of Amazon's Supply Chain and the Company's Management of Its Supply Chain Operation

interaction. They focus on quick delivery, satisfactory service, and a clear indication of the

shipping policies available for the package (Straight, 2023). This customer-oriented strategy has

orders to manufacturers, who respond by shipping the ordered products to Amazon's 122

fulfilment centers. Suppliers, retailers, or third-party sellers can log in to the company's vendor

centre and order products in bulk since Amazon does not sell one single product unit. The

retailers can enter the vendor centre, enter shipment details and tracking numbers, and follow

through with invoices. The advantage of the vendor centre is that it does not rely on the

traditional email system or faxed purchase orders, which is less effective compared to the vendor

centre approach (Ivy Business School Foundation, 2021). The organized procurement system at

Amazon ensures that a variety of goods are made available at Amazon's stores, where customers

can easily purchase the products. Also, the procurement system ensures that the process of

purchasing products from Amazon's stores by retailers and third-party sellers is quick,

in areas that provide future promise for the expansion of each centre, as illustrated in the table

below.

(Ivy Business School Foundation, 2021)

The flow of the products through the distribution channel is as follows:

where the products are sorted and packaged before being taken to the fulfilment centre.

Fulfilment centers are mainly warehouses where products are stored, picked up, or shipped to

customers. Several steps can occur at the fulfilment centre before the products get to the

customers. First, the commodity can be shipped to FedEx or UPS, which handles customer

delivery. The second option is that the products can be sent to a small outbound centre by means

distribution chain ensures faster shipment and product tracking to prevent losses. Lastly, the

distribution channel ensures that the product's quality is maintained.

Global Logistics Giant

in several countries around the globe. To support this chain operation, the company uses a fleet

of trailers in every country, along with its store, to assist with the transportation of the products.

Additionally, the company has several aeroplane fleets at its Prime Air Logistic Services. The

planes assist with the quick transportation of products overseas. The use of aeroplanes for

transportation ensures that the product reaches far-distance customers in a few hours (Garland,

2023). The faster the customer reaches a product, the more motivated they will be to purchase

In 2017, ten years later, the volume of third-party sellers grew to approximately 51 per cent of

the total products shipped (Ivy Business School Foundation, 2021). These statistics demonstrate

2024). This integration is very effective not only in the aspects of the selling process but also

saves sellers' time and improves the overall satisfaction of customers.

forced to handle all shipping arrangements. They ship goods to these warehouses, and upon

placing an order, the item is shipped to the buyer. One of the most generous responsibilities that

Amazon provides is 'Fulfillment by Amazon', which means that the Company is responsible for

picking, packaging, and delivering the products, as well as customer service and returns. It helps

minimize fulfilment time and shipping costs, which allows sellers to scale their profit-making

more efficiently while catering to the needs of the customers.

consumers and customers but also backed up Amazon as a leader of e-commerce innovation and

Ivy Business School Foundation. (2021). Supply Chain Management.