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Amazon was launched by Jeff Bezos in July 1995. At that time very few realized that in 2016 it would be the world’s largest online marketplace. At the time of launch, it was just an online book store. It is surprising that after 20 years, you are able to buy almost anything from Amazon.
Amazon now sells thousands of products. Some of its products are drop shipped by other merchants and some are created by Amazon itself. Though managing to sell A to Z products through a long list of merchants is not an easy task. The best thing is that Amazon, has managed to satisfy customers at highest level and have been successful in shredding all the competition and getting ahead of all the competitors.
Have you ever thought of why Amazon has been able to win the hearts of their millions of customers? Here, we will discuss the biggest strength of Amazon Supply Chain Management.
WHAT IS AMAZON SUPPLY CHAIN MANAGEMENT?
Supply chain is the group of various processes which enables delivery of goods to the customers. It includes planning, controlling and executing measures ensuring satisfying customers as cost-effectively as possible. Amazon’s central focus is on customer satisfaction and thus they have disciplined their supply chain management processes so that their customers get good shopping experience.amazon supply chain system
Supply Chain Management – Strength of Amazon
For giving a good shopping experience to the customers, Amazon presents a wide variety of products at competitive prices, enables convenient payment options and reliable delivery process.
Amazon had known that the secret of success is to provide quick and hassle-free delivery to the customers. Thus, the company started investing in its shipping process and warehouses. Amazon kept on reducing its shipping time. From 3 days delivery time to same-day delivery – they managed to keep their customers happy and win more and more sales day by day.
Now, Amazon has also managed to enter the very competitive grocery market in the US and UK regions. They are selling more than 4,000 grocery and household products now. All that is possible only because of their customers’ trust they have won by providing them quick and reliable delivery.
Amazon supply chain management is a network of inter-linked operational processes that work in harmony to provide goods and services to the customers. Supply chain management involves the planning process, implementing the plans, and controlling the supply chain’s overall operations. The supply chain management’s primary purpose is to satisfy the customer requirements in the best cost-efficient way possible.
eSellerhub’s Amazon supply chain management software is designed to help the suppliers be on par with Amazon’s service procedure. Moreover, it is flexible and can be custom developed as per the business model. From order processing to delivery, eSellerhub can render simplified execution of supply chain-oriented transactions, handle supplier relationships, and control the overall related business processes.
eSellerhub’s software can manage more extensive and complex operations, including warehouse and inventory applications. It provides comprehensive solutions to the users in a single platform based on service-oriented architecture. It gathers data from several workflows, from sales analysis to inventory management and supply chain management. It utilizes those insights to report and streamline the processes for better results. Various processes can be automated, thus reducing the time and workforce required than usual.
Amazon had understood the consumer behavior towards online shopping very well on an initial stage itself. The company knew that a customer buying from their store requires wide selection, convenience in buying and quick service. The ease of using the interface is very important and so Amazon kept all the online business processes quite simple and easy. So, now it has become very difficult for other online stores to compete with Amazon. As per the New York Times, several companies who were planning to plunge into online selling are no more interested in that field as Amazon has become very much powerful. Even Walmart has invested billions of dollars to get ahead of Amazon. Still, Amazon has already achieved its dominant position due to its best Amazon supply chain management process.