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Amazon.com (Amazon.com in Europe (Launching (UK, Germany and France,…

- - - - maintain dedicated web sites for each of the three customer bases (24 hours customer centers with native language
      - address selling regulations in each country (set up promotional activities: FREE SHIPPING)
      - software customization for payment options
      - used Electronics data Interchange to communicate with its US suppliers because differences of supplier market
  - - - improve customers experience by enabling Amazon to select the appropriate DC to fulfill a customer order
      - facilitate global sourcing
      - expand product selection of current sites through fulfillment from other DCs
      - reduce the risk of relying on single DC to serve a large bas of customers
      - expand into other European country
    - - continue with current strategy of holding inventory in all 3 DCs, and EDN as back-up
      - selective share inventory
      - operations could be integrated fully
      - inventory ownership under the different options
    - - implementation of the EDN on internal departement and impact to transportation processes (Next-day delivery)
      - leverage EDN volume to implement "postal injection"
- - - - Found in July 1995 as online book retailer
      - relied on hold modest inventories and wholesaler (Ingram Book Company and Baker & Taylor)
      - warehouse in Seattle
      - Order (if not in own stock) > submit purchase to wholesaler > Shipment to Amazon DC (2-3 days)
      - open direct accounts with publisher
  - - - grew on DC capacity and launch a second DC in Delaware
      - increase number of titles helds in DC
      - software development to support back-office support
  - - - pursue "Get Big Fast" and adopted its supply chain strategist software ( i2 Technlogies) and distribution network
      - distribution network
        
        use software to select regions consider for its distribution facilities based on supplier, customer locations, inbound-outbound freight rates, expenses, tax rates etc.
        
        DC: Nevada and Kansas, Campbellsville, Lexington, Georgia
        
        cost: $320 M but increased its capacity to pack, wrap and ship
        
        DC should carry a mix of products was based on transportation cost, time to deliver to customers, and cost of dealing with multi-item orders
        
        Equipped with a "pick-to-light" systems and radio-frequency technology
        
        2 types of pick list
        
        Single-item orders
        
        Multi-item orders
        
        developed key metrics to measure worker performance to maintain high levels of quality and productivity in its distribution centers
  - - - use Six Sigma DMAIC to reduce variation, defect and improve inventory-record accuracy
      - encouraged DC staff to simulate holiday season conditions.
      - addition storage capacity
    - - refined the software used to forecast customer demand by improving its ability to anticipate seasonal and regional demand
      - Establishing buying rules to better allocate volumes among wholesalers and direct vendors
      - integrated its suppliers management system with own inventory, warehouse and transportation systems.
      - implemented a set of "cascading" buying rules
    - - having wholesalers "drop ship" orders
      - partnering with other companies
      - reduce shipping costs by "postal injection" or "zone-skipping" method
      - closing 2 DC (Georgia and Seattle)