Amazon

One of the interesting features of Supply Chain Management is that there is a big difference in level of development between companies. Some companies have invested more time and effort in developing efficient, cost saving and professional Supply Chain practices than others.

In the category ‘Companies’ we will focus on companies and their Supply Chain practices. The aim is to discuss a diversity of companies at all levels of Supply Chain.

We start of with Amazon. A well-respected company from all perspectives, but probably most of all because of their Supply Chain practices. I order from Amazon and find it an excellent service. Mind you, don’t order too many copies of an unpopular product, as you will find it back ordered. But who can disagree that this is not necessarily a bad thing from an inventory management perspective.

I found the article “Amazon rising fulfillment costs” and found it interesting as it shows that Amazon has trouble keeping their overall Supply Chain costs from growing. Unfortunately the article does not give much inside on what the specific cause for the growth is. I like to believe that the slightly increasing costs are from a continuous investment in Supply Chain that is needed to keep the costs from growing even faster. A company that is always looking for new opportunities in the market understands that it costs money to make money.

The article: http://www.scdigest.com/assets/newsviews/13-06-06-1.php?CID=7114

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