SM HW 4.docx - Chapter 4 Case – Amazon – 1 Network distribution centers is a big investment Amazon has made to up efficiency They have 40 in the USA

SM HW 4.docx - Chapter 4 Case – Amazon – 1 Network...

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Chapter 4 Case – Amazon – 2/27/19 1) Network distribution centers is a big investment Amazon has made to up efficiency. They have 40+ in the USA alone. This allows them to be quick, and not allow inventory to sit and collect dust. This saves time and money. They embraced automation as well, which contributes a lot to efficiency. They invested in software that allows them to analyze customer purchasing patterns and help them anticipate future demand. The goal was to reduce holding costs, as per the textbook case. Like we talked about in class, the best way to be able to sell cheaper, is to reduce costs, not to compromise quality. 2) Efficiency is closely linked to customer responsiveness. The goal is to get products to customers as quickly and cheaply as possible. They are able to respond quicker to customers, since they have upgraded their productivity 30-40% through the use of their distribution centers that are strategically placed. They have gotten involved in a large array of products, giving customers choices that no other company can match. Their AWS has even gotten them working
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  • Spring '14
  • GeneP.Caiola

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