Beruflich Dokumente
Kultur Dokumente
Group 3
NATASHA AGARWAL- B004
RAJ BROOTA- B012
EDELBERT FERNANDES- B023
SHOEB HASAN- B028
ASHMITA SENGUPTA- B054
BHUMI SHAH- B057
HARSHIT SINGHAL- B063
CONTENTS
1.
ABSTRACT........................................................................................................ 3
2.
COMPANY OVERVIEW....................................................................................... 3
3.
PROBLEM DEFINITION...................................................................................... 3
4.
5.
PROCESS SCENARIO........................................................................................ 4
6.
IT SOLUTION.................................................................................................... 5
7.
IMPLEMENTATION METHODOLOGY...................................................................6
7.1.
7.2.
Implementation Strategy..........................................................................7
8.
SWOT ANALYSIS............................................................................................... 7
8.1.
Strengths.................................................................................................. 7
8.2.
Weaknesses.............................................................................................. 8
8.3.
Opportunities............................................................................................ 8
8.4.
Threats...................................................................................................... 8
9.
CHALLENGES FACED........................................................................................ 8
9.1.
People....................................................................................................... 9
9.2.
Management............................................................................................. 9
9.3.
Technology................................................................................................ 9
10.
11.
12.
CONCLUSION.............................................................................................. 11
13.
FUTURE SCOPE........................................................................................... 11
14.
REFERENCES.............................................................................................. 11
1. ABSTRACT
E-commerce does not just mean trading and shopping on the Internet. It
means business efficiency at all operation levels. Executives know it is
critical to effective business operations, but until now quantifiable
performance measures have been as scarce as the number of corporate
executives of China who heard of the phrase "supply chain management"
(SCM). Supply Chain Management means coordinating, scheduling and
controlling procurement, production, inventories and deliveries of products
and services to customers. The SCM is the backbone of E-commerce, a
very critical component of E-commerce. Supply Chain Efficiency means
having the right product at the right place at the right time, can save
money/reduce costs, and can enhance cash utilization.
2. COMPANY OVERVIEW
Amazon is one of the first online shopping sites launched in 1995. Since its
inception, it has been consistently ranked as one of the best retail sites on
the Internet and is regarded as the universal model for successful Internet
retailing. In March 1998, Amazon was ranked among the top 20 internet
sites in almost all the major market surveys.
Amazon owed a large part of its popularity to its excellent customer
service, which was due to its exemplary inventory management. Amazon
realized that there were a lot of players in the e-tailing industry and
therefore it needed to consolidate its position as one of the best online
shopping sites. Accordingly, it took several measures. In order to increase
its revenue, it added several new products to its site. In 1999, on an
average, it added a new product on its site once in every six weeks. It
entered into strategic alliances with several companies to increase the
range of products available on its site.
Later, it strengthened its Customer Fulfilment Network by obtaining
products directly from the distributors rather than stocking all the goods in
its warehouse. Amazon was popular among its customers for shipping the
goods within the estimated time, leading to satisfied customers, improved
market share and repeat business. By the end of 2002, Amazon had 22.3
million registered users on its site. By 2003, Amazon became the biggest
book, music and video retailer on the Internet and offered more than 4.7
million books, videos, music CDs, DVDs, computer games and other
products.
3. PROBLEM DEFINITION
Owing to Amazons ever expanding user base and the highly increasing
competition, the question that they needed to answer was what was being
done to set themselves apart from the competition. Although an ecommerce company, Amazon needed to undergo a change that would
allow them to stay ahead of the competition while simultaneously allowing
them to transform their supply chain into a framework that supports
communication as well as high levels of collaboration. They needed some
solution that would provide them with increased visibility in the supply
chain and hence allow them to be more responsive when necessary while
also allowing them to have quantifiable action points.
As Is
Process
Analysis
- Inflexible to Expansion
- Complex Supply Chain
- Trade-Off between
Ancillary & Core Activities
Product
Analysis
IT
Infrastructure
Competitive
Analysis
Strategic
Analysis
5. PROCESS SCENARIO
To-Be
-Improved Shipping
-Logistics Efficiency
-Concentrate on Core
Activities
-Inventory of only popular
products
-Acted as a transshipment centre
-SCM & ERP Integration
-One-Day Delivery
-RFID Technology
-Partnerships with
Distributers/Wholesalers
-Match Demand;
Expansion
6. IT SOLUTION
1) In 2000, Amazon com made improvements in building its high quality
automated warehouses, and now today they have one of the most
efficient and sophisticated in the world. Amazon uses Oracle as there
ERP, in which Oracle built a multi-terabyte database for the company,
while SCM software was attained to control cost and improve shipping
and logistics efficiency. The SCM systems at Amazon coordinates all
supply activities of the company such as supply and distribution
network, logistic activities and inventory managemnet. It increases
process effeciency, reduces supply chains complexity, improving data
integration within the supply chain, and reducing costs. The ERP and
SCM are intregrated so they can interact with each other so they can
serve the customer with great efficency.
2) In early 2001, Amazon decided to outsource its inventory management
though it knew that it was a huge risk. When Amazon managed its own
inventory, it had earned the reputation of providing superior customer
service, which was its biggest strength. Now, the company wanted to
concentrate on its main activities and outsource inventory management in
order to earn more profits. Amazon did not stock every item offered on its
site, by stocking only those items that were popular and frequently
purchased. Amazon basically acted as a trans-shipment centre and ensured
that the entire process of shipping from the distributor to the customer was
done very efficiently. This is an example of Vendor Managed Inventory.
3) Certain Amazon applications can use radio-frequency identification
technology, and the online retailer will turn on the capability when it's
needed, RFID tags support real time tracking of tagged goods. The tags
are attached to products and emit signals containing detailed
information regarding what the product is, the size of the product,
where it was made, when it might perish, the product warranty etc.
They can also be used to track a product as it passes though the SCN
eg the factory floor, the warehouse, the distribution chain, the retailer
and then at point of sale.
4) Web 2.0 tools and Supply chain Application
Web 2.0
tool
Blog
RSS feed
Social
Networki
ng
Example
Amazon Blog can be used for internal and external
communication like sharing expert advice, opinions and
frequently asked questions (FAQ), gathering customer
feedback and building a loyal customer base.
To keep up-to-date the customers on the latest popular
products, Amazon offers RSS feeds for their Bestsellers, Hot
New Releases, Most Gifted, Most Wished For and Movers &
Shakers lists.
Amazons Social Network site presence is particularly useful
for Advertising products, providing links to company
websites, increasing brand awareness, gathering customer
feedback on advertised products.
7. IMPLEMENTATION METHODOLOGY
7.1.
7.2.
Implementation Strategy
8. SWOT ANALYSIS
8.1.
Strengths
8.2.
8.3.
Opportunities
There are also opportunities for Amazon to build collaborations with the
public sector. Example: The British Library.
The main focus of the organization can be on the core functions and
outsource ancillary activities. Also, it will help in maintaining low
inventory of products thus favorable Inventory turnover ratio.
8.4.
Weaknesses
Threats
9. CHALLENGES FACED
Major problems of ERP implementation were not technologically related
issues such as
technological complexity, compatibility, standardization, etc. but
mostly organization and human related issues like resistance to
change, organizational culture, incompatible business processes,
project mismanagement, top management commitment, etc.
9.1.
People
9.2.
Management
9.3.
Technology
12. CONCLUSION
There is a lot of interesting results from the e-Business revolution. As a
result, SCM change to e-SCM. IT is applied in the SCM and facilitates
different flows in the SCM. In our analysis we see that Amazon has
benefitted from the integration of SCM in the Enterprise systems. Amazon
has used varied approaches for its supply chain and logistic needs such as
RFID, Vendor Managed Inventory, Just-In-Time Inventory and use Web 2.0
tools like Blogs, Social Networking Sites and RSS feed to connect to its
customer.
14. REFERENCES
http://www.saycocorporativo.com/saycoUK/BIJ/journal/Vol1No1/article_
4.pdf
http://www.slideshare.net/Lordnikhil/inventory-management-amazon
http://cdn.intechopen.com/pdfs/18521/InTechWeb_technologies_and_s
upply_chains.pdf
http://www.informationweek.com/from-scratch-amazon-keeps-supplychain-close-to-home/d/d-id/1023619