Question

What is an example of a supply chain that has evolved over time?

 

Please cite one source and answer has to be at least one to two paragraphs. Thank you in advance. 

Answer 1

An example of a supply chain that has evolved over time could be Amazon. Amazon is one of the leading leaders in managing its supply chain. Amazon is always on a continuous move to drive down the cost of its supply chain so that its customers can enjoy a better price. Amazon's supply chain mostly depends on outsourcing of its inventory management. Amazon outsourced its inventory management, i.e., the products which are not frequently ordered or purchased are stored in third-party inventory system. Amazon completes most of its orders through third-party sellers which saves cost. Amazon uses its own logistics to deliver products from third-party seller to its customers which saves its delivery cost. Also saves time of Amazon and its customers.

Amazon has maintained different warehouses for different kinds of products and customer preferences for delivery options. By maintaining different warehouses Amazon is able to save time, maintenance cost and delivery costs. The warehouse location of Amazon is decided strategically, placed mainly metropolitan areas and city centers. So it's easy to pick the products from the nearest city and deliver at the customer end, that saves both time and cost. Customers are happy by getting their products on time and with a reasonable price.

Another innovative technology used by Amazon is the use of automated and robotic warehouse solutions. The robots at Amazon warehouses pick and pack without any human intervention. This makes warehouse activities super-fast. Every year, Amazon is adding more and more robots to make its warehouse activities fully automatic and super-fast. Employees are engaged in other roles like supervising and troubleshooting the robots. Currently, it is aiming at delivering the products by robots directly at the customer doorstep.

In its manufacturing unit, Amazon is producing many of products like batteries, backpacks, i-phone chargers, etc. to reduce costs and save time. In future, it is planning to add more products in its manufacturing unit to reduce its supply chain management costs.

The pace of Amazon's innovations in supply chain management has been enthralling. It's invention of new technology is so fast that it's competitors find it difficult to compete.

Source : www.thebalancesmb.com/how-amazon-is-changing-supply-chain-management-4155324