Case Code : CLSDM027
Publication date : 2005
Subject : Sales and Distribution
Industry : e-Commerce
Length : 03 Pages
Price : Rs. 100
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Online, Inventory Management, Amazon, Hardware, DVD, Orders, Holiday Shopping, Outsource, e-Commerce, Website, Turnover
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The caselet describes how the strategies adopted by Amazon.com (Amazon) to satisfy its customers ended up in inventory being piled up at the warehouse. The caselet discusses the steps that Amazon took to spruce up the inventory management system and the benefits that it derived from this. It also outlines the distribution process adopted by Amazon to dispose of its products quickly. Finally, it touches on the benefits that the company obtained by selling other retailers' products through its website.
Questions for Discussion:
1. Amazon planned to do things differently for the 2000 holiday season. What were the reasons that led to the revamping of inventory management methods? How was inventory management made more efficient at Amazon?
2. Why was Amazon apprehensive about outsourcing inventory management? Do you think it was wise on its part to go ahead with its decision to outsource inventory management? Also, comment on the company's idea of selling other retailers' products on Amazon.com.