Inside Amazon: Chaotic Storage System

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Details
Case Code:

CLOM019

Case Length:

6

Period:

Pub Date:

2017

Teaching Note:

YES

Price (Rs):

200

Organization:

Amazon

Industry:

Retailing

Country:

US

Themes:

Logistics & Supply Chain,Distribution, Inventory Management, Service Operations

Abstract

This case is about the US-based online retailer Amazon.com Inc (Amazon). It illustrates the Amazon fulfillment center’s storage system and contemplates its storage practices, which are in total contrast to the traditional practices of storing products by characteristics and attributes. The case also highlights the advantages and disadvantages of Amazon’s practices of storing its products by available shelf or storage space, though a few products are exempt from the rule. This presents a picture of ‘organized’ confusion to anyone who steps into Amazon’s warehouse. However, Amazon has been largely successful in redefining the way the products were effectively stored and retrieved in the warehouse. This case discusses the critical success factors that help operations managers to develop a decision framework for a warehouse storage system in the supply chain context.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

  • The students will get to understand the role of the warehouse storage system in the order fulfillment process. They will also get to know the importance of storage or shelf space in the warehouse storage system as in any brick-and-mortar store. Further, t
Keywords

Amazon, Storage, Warehouse, online retail

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