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SUPPLY CHAIN MANAGEMENT
OF
AMAZON INDIA
Presentation By: Abhisek Khatua
Introduction
• Amazon Incorporated as “Cadabra”, By Jeff Bezos.July 5, 1994
• Website went Online as Amazon.com; Online Bo...
Total E-Commerce Size ($ Billion)
Online Shoppers of Total
Internet Users (as a %)
Average Spending per Online Shopper in ...
Amazon Invades India
o B2C e-Commerce Market place; 2nd largest Online Retailer in India.
o 55 million products across hun...
Amazon India: Products, Services and Value Chain
Kindle e-Readers & eBooks
Computers & Accessories
Sports, Fitness & Outdo...
Unveiling Supply Chain of Amazon India
With respect to their different services
Selling on Amazon (Sell Smart. Sell on Amazon.)
Set up Store on
Amazon
Receive orders
from Customers
Amazon delivers
Order...
How Amazon help to grow Sellers’ business?
Set up your store
Sit back and relax
Hassle-free Payments
Sell Globally
Crores ...
Fulfillment By Amazon (FBA)
1. Sellers send products
to an Amazon
fulfillment center or
schedule a pickup
2. Amazon stores...
Fulfillment By Amazon (FBA)
Seller
Customer
INFORMATION
INFORMATION PRODUCT
PRODUCT
FC
Advantages of FBA- “You sell it, we ship it.”
Focus on your
business
Build Trust
Pay as you go
Customers keep
coming back ...
Amazon Easy Ship
1. Customer orders
from Sellers using Pay
with Amazon. Sellers
get a notification of the
order via email,...
Amazon Easy Ship
Seller
Customer
INFORMATION
INFORMATION PRODUCT
PRODUCT
Amazon Global Selling
Expand business to
the US and other
International Market
Showcase products to
millions of customers
...
Amazon Seller Flex
Warehouse
Customer
INFORMATION
PRODUCT
PRODUCT
Supplier
INFORMATION
Strategic Partners of Amazon
Amazon will use P&G’s warehouses for faster and economical product
distribution.
Amazon will ...
Fulfillment Centers of Amazon
Fulfillment Center: 21
New Fulfillment Center: 5
Delivery Station: 4
Largest FC in Sonipat, ...
FC, New FC and Delivery Station of Amazon
@Data Source: MWPVL International
Evaluation of Amazon India’s Supply Chain
• Delivers some of the products itself, while delivering some products sold by s...
The Game Plan of Amazon India: Wining India
• 65 % Orders (2015) are from Tier II & III
cities
• Engaged in Pilot Project ...
Amazon India: Wining India
• Three-wheeled mobile carts to navigate in a city’s business districts, serve tea, water,
and ...
Our Suggestion
• Customer Consideration, Vendor Consideration, Geo-Political Consideration,
Logistics Consideration.
Multi...
Conclusion
“Be afraid of Our Customers, because those are the folks who have the money. Our Competitors
are never going to...
Thank You
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Supply Chain Management of Amazon India

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Supply Chain Management of Amazon India

  1. 1. SUPPLY CHAIN MANAGEMENT OF AMAZON INDIA Presentation By: Abhisek Khatua
  2. 2. Introduction • Amazon Incorporated as “Cadabra”, By Jeff Bezos.July 5, 1994 • Website went Online as Amazon.com; Online Book Store1995 • Acquired Junglee.com1998 • Entered Indian E-commerce space as Junglee.com2012 • Amazon.in launched2013 @Data Source: Amazon Corporate Website
  3. 3. Total E-Commerce Size ($ Billion) Online Shoppers of Total Internet Users (as a %) Average Spending per Online Shopper in India Investment Over $5 Billion India: The Big Opportunity for Amazon @Data Source: “e-Commerce in India: A Game Changer for the Economy”, CII, April 2016
  4. 4. Amazon Invades India o B2C e-Commerce Market place; 2nd largest Online Retailer in India. o 55 million products across hundreds of categories. o 1.3 Million Products in Fulfillment Center (26 FC in 10 States). • Massive Selection • Low Prices • Fast & Reliable Delivery • Trusted & Convenient Experience • Convenient Payment (Cash, Electronic) Customers Sellers • World Class e-commerce platform • Large Base of Customers • Fast & Stress free shipping • No Fixed Cost • Secure & Timely Payment • Professional Services
  5. 5. Amazon India: Products, Services and Value Chain Kindle e-Readers & eBooks Computers & Accessories Sports, Fitness & Outdoors Handbags & Luggage Amazon Apps Cameras, Audio & Video Beauty, Health & Gourmet Books Shoes Clothing & Accessories Movies, Music & Video Games Home, Kitchen & Pets Jewellery, Watches & Eyewear Car, Motorbike & Industrial Mobiles & Tablets Toys & Baby Products Sell on Amazon Fulfilment by Amazon Pay with Amazon (Easy Ship) Sponsored Product Amazon Global Selling Products Services Value Chain @Data Source: Amazon India Corporate Website, Store Directory
  6. 6. Unveiling Supply Chain of Amazon India With respect to their different services
  7. 7. Selling on Amazon (Sell Smart. Sell on Amazon.) Set up Store on Amazon Receive orders from Customers Amazon delivers Orders Receive payment from Amazon Help to Grow Business Expand Globally Amazon Easy Ship Fulfillment By Amazon @Data Source: Amazon India Corporate Website
  8. 8. How Amazon help to grow Sellers’ business? Set up your store Sit back and relax Hassle-free Payments Sell Globally Crores of customers across the world Fast and Stress free Shipping No fixed costs. Pay when you sell. Secure and Timely Payments Professional services Advantages
  9. 9. Fulfillment By Amazon (FBA) 1. Sellers send products to an Amazon fulfillment center or schedule a pickup 2. Amazon stores Sellers’ products – from a single unit to your entire inventory 3. Customers order Sellers’ products from Amazon, often with fast, free delivery 4. Amazon packs and ships Seller’s products from fulfillment center to the customer 5. Amazon’s customer service and delivery creates loyal, happy customers @Data Source: Amazon India Corporate Website
  10. 10. Fulfillment By Amazon (FBA) Seller Customer INFORMATION INFORMATION PRODUCT PRODUCT FC
  11. 11. Advantages of FBA- “You sell it, we ship it.” Focus on your business Build Trust Pay as you go Customers keep coming back for more Cash on delivery payments Amazon Prime
  12. 12. Amazon Easy Ship 1. Customer orders from Sellers using Pay with Amazon. Sellers get a notification of the order via email, Seller Central. 2. Sellers schedule the pickup and keep the product packaged and ready. 3. Amazon Easy Ship delivery associate picks up the package from Sellers’ doorstep. 4. Amazon Easy Ship delivers the package to the customer and picks up Cash on Delivery (COD) payments. @Data Source: Amazon India Corporate Website
  13. 13. Amazon Easy Ship Seller Customer INFORMATION INFORMATION PRODUCT PRODUCT
  14. 14. Amazon Global Selling Expand business to the US and other International Market Showcase products to millions of customers Increase sales by tapping into the US & International holiday season Selling on Amazon & Fulfillment by Amazon  Customers order Seller’s products on Amazon.com  Sellers can either choose to fulfil those orders on their own or use Fulfilment by Amazon (FBA).  Fulfil orders on their own: sellers will fulfil orders from India when a customer buys sellers’ products on Amazon.com  FBA: sellers store their products in Amazon's fulfilment centres, and Amazon will pick, pack, ship, and provide customer service for these products. @Data Source: Amazon India Corporate Website
  15. 15. Amazon Seller Flex Warehouse Customer INFORMATION PRODUCT PRODUCT Supplier INFORMATION
  16. 16. Strategic Partners of Amazon Amazon will use P&G’s warehouses for faster and economical product distribution. Amazon will use Future Group’s strong product knowledge, extensive brand portfolio and sourcing base. Amazon will use SBI’s smooth & trusted payment solutions for small businesses and end customers
  17. 17. Fulfillment Centers of Amazon Fulfillment Center: 21 New Fulfillment Center: 5 Delivery Station: 4 Largest FC in Sonipat, Haryana Space: 200000 Sq. Ft. Capacity: 800000 Cu. Ft. Year end 2016: Combined Storage Capacity 7.5 Million Cu. Ft. 86% Sellers of FBA 1.3 Million Products are available for Immediate Shipping @Data Source: MWPVL International
  18. 18. FC, New FC and Delivery Station of Amazon @Data Source: MWPVL International
  19. 19. Evaluation of Amazon India’s Supply Chain • Delivers some of the products itself, while delivering some products sold by suppliers on its marketplace using other logistics firms. Hybrid Logistics Model • “Innovating to get customers what they want, when they want it.” • Using machine learning, data analytics, and complex simulations. Amazon SCOT (Supply Chain Optimization Technology) • Seller is free to choose self-fulfilment or marketplace-fulfilment. • Infused inventory-led in a marketplace by having operational control over seller entities like Cloudtail (Amazon). Managed Marketplace Model
  20. 20. The Game Plan of Amazon India: Wining India • 65 % Orders (2015) are from Tier II & III cities • Engaged in Pilot Project of Rural Delivery Network in Tier III & IV cities with Connect India E-Commerce Pvt. Ltd. (of Basix Group)
  21. 21. Amazon India: Wining India • Three-wheeled mobile carts to navigate in a city’s business districts, serve tea, water, and lemon juice to small business owners and teach them about selling online. • Team travelled 15,280 km across 31 cities, served 37,200 cups of tea, engaged with over 10,000 sellers (in 4 Months) Amazon Chai Cart • A studio-on-wheels offering a suite of launch services. • Enables small businesses to get online in less than 60 minutes. Amazon Tatkal • Deliver products in over 19,000 pin codes using Amazon Transportation Services, Blue Dart, and India Post. • Most penetrated e-commerce platform in the country. Easy Ship
  22. 22. Our Suggestion • Customer Consideration, Vendor Consideration, Geo-Political Consideration, Logistics Consideration. Multiple Hub & Spoke Model • Better control, Business Diversification. • Improved Delivery, Cost and Services. A fully grown in-house logistic arm • Tie up with Home-Grown Logistics Firm & Start-Ups. More Investment in Supply Chain to penetrate Rural India
  23. 23. Conclusion “Be afraid of Our Customers, because those are the folks who have the money. Our Competitors are never going to send us money” …… Jeff Bezos Supply Chain of Amazon India Ready with EVERYTHING EVERYWHERE EVERYTIME
  24. 24. Thank You

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