Amazon Inventory

In: Business and Management

Submitted By organicaatma
Words 5973
Pages 24
OPER/023
ICMR Center for Management Research

Amazon.com's Inventory Management
This case was written by Purnima Pillai, under the direction of Sanjib Dutta, ICMR Center for Management Research
(ICMR). It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.
Licensed for use by the students of the
Executive MBA Program,
The ICFAI University.
Not to be reproduced.

2004, ICMR. All rights reserved.
To order copies, call 0091-40-2343-0462/63 or write to ICMR, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email info@icmrindia.org. www.icmrindia.org

Abstract
The case provides an overview of Amazon.com’s inventory management. Jeffrey
Preston Bezos, the founder of Amazon.com, launched the company when he realized that Internet provided immense scope for online trading. Although the site was originally launched as an online bookstore it eventually offered several other products to keep abreast of the competition. The case takes a look at the different products and features offered on the site. The case also discusses Amazon's value propositions and its criteria for choosing strategic partners. It then elaborates on the strategies adopted by Amazon for managing its inventory. It also explains
Amazon’s decision to outsource inventory management to distributors. The case takes a look at Amazon’s decision to sell the products of competing retailers on its site. It concludes with a brief note on the future challenges in Amazon’s warehouse management.

OPER/023

Amazon.com’s Inventory Management
"In the physical world it's the old saw: location, location, location. The three most important things for us are technology, technology, technology."
– Jeff Bezos, CEO, Amazon.com1
"We have seen a very…...

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