How do Amazon.com's logistics and supply chain management activities help the company create value for its customers?
The efficiency of the logistics of Amazon has been instrumental to their recent success. They have grown their customer base and continue to gain huge clientele due to the reliability of their services. Top of their priority is customer value, and that has made them become the market leader in the distribution and sales of items. Its online system enables Amazon to serve its virtual customers and, as a result, have been able to deliver their commodities in time. The distribution chain of Amazon has helped speed the processing of customer orders and ensures that they are provided within the designated timeframe. Additionally, it has enabled accurate handling of orders as they can be traced along the distribution chain. It has thus ensured that the customers are satisfied with the delivery of their order hence instilling confidence. Creating value for clients has been the primary business objective of the company, therefore; demonstrates the growing customer base enjoyed by the company.
What systems did Amazon develop to improve the flow of products from suppliers to Amazon distribution centres? What systems improved the flow of orders from the distribution centres to customers?
In a bid to enhance the flow of products to its distribution centers, Amazon created fulfillment centers that enabled it to stock inventory. The system has been efficient in helping storage of inventory thus making them available for the customers on demand. It is critical for the delivering to clients as it easy to access the products. To improve the client efficiency, Amazon developed e-commerce software to facilitate the process of distribution and access of products to customers from their stores. The e-commerce software has been significant in the flow of orders from clients and inventory storage points.
Why will logistics and supply chain management play an important role in the future success of Amazon.com?
Supply chain and logistics have been critical to the flow of inventory and the process of product distributions. Logistics enables faster coordination between the client and the company, and this has made Amazon benefit from the efficiency initiated by the process. Supply chain and logistics will help enhance efficiency between Amazon and the company. It is critical for the customers to find value in the services of the company and logistics assures customers of value through efficient service delivery.
