Project Dissertation Report on

“A STUDY ON SUPPLY CHAIN MANAGEMENT TOWARDS AMAZON.COM, INC.”

 STUDENT UNDERTAKING

Dated: 21st June 2020

This is to undertake that the work titled “A study on supply chain management towards Amazon.com,
INC.”, Project Report is submitted as part of 4th Semester in MBA during January-May, under the
guidance of Sulakshana maam is my original work to the best of my knowledge and has not been
submitted anywhere else. The report has been written by me in my own words and not copied from
elsewhere. Anything that appears in this report which is not original, has been duly and
appropriately referred / cited / acknowledged. I certify that the final report submitted for approval has a
plagiarism level of 17% which is within the guideline prescribed by the department. The Plagiarism report
from the department library is enclosed at the end of the report.

Aditya Pandey
 ACKNOWLEDGEMENT

The completion of this Project Dissertation Report is due to the cordiality of all those who were involved with
me in my efforts.
I present my sincere thanks to Sulakshana Maam, for supporting me and being the constant moral
support throughout my project. I am lucky enough to get the opportunity work under his guidance.
I sincerely thank all the people involved from the bottom of my heart.

Aditya Pandey
CHAPTER – 1
 INTRODUCTION

1.1 Introduction to the topic

1.2 Supply chain is the handling of product and services it includes enhancement of storage of raw materials, work
stock and finished products from initial junction to final junction. Supply chain consists of its structure,
arrangement, handling and verifying of flexibly chain with an aim of making profit.
Amazon.com Inc. is an USA based company founded by JEFF BEZOS. It is the biggest online retailer in the whole
world. It initially started as an online handbook platform.
Amazon comprises of different retail nodes all over the world such as countries like China, Spain, Japan, India,
Canada etcetera. It also provides transportation facilities with in this nation.
Amazon defeated Walmart in its retailers strength competition in 2015and hence became the biggest internet
retailer.

1.2 Objective of the study

The goals of the projects are: -

 “to comprehend the working of the different offices in amazon.com, inc”...
 “to comprehend the different obligations and obligations completed by every office”.
 “the study is planned for seeing how an association basically functions in the genuine circumstance”.
 “to discover the consumer loyalty with the current administrations”.
 “to know the viability of supply chain the board of amazon.com, inc”...
 “to comprehend job of coordination’s framework in usefulness of amazon.com, inc”...
1.3 Company profile

Amazon and its extended companies are based from Washington. It expertise’s in delivering best in class services
and finished products that are innovative and are exceptionally customer friendly some of its products include
eBooks, music players, computers software’s etcetera thus a complete package for house hold items and for each
functional group.

History

Amazon founder Jeff Bezos

The firm came into existence back in 1994. With very limited resources and a single room as its office
headquarters. Amazon started it journey with a vision to add a value to internet services. In September 1994,
“Bezos bought the URL Relentless.com and quickly thought to be naming his online store. Relentless, but
company companions and colleagues thought of this name as negative and not Decentfor the branding. The
organization finally came into existing naming as Amazon.com. Bezos came up with a word Amazon as it was
very closed to his heart and reminded himself of is vision to embark
upon the journey of becoming a legend in the field of internet servicesThe firm started its functioning and traded its
first handbook from its online platform-Amazon.com. It the company got public and got listed upon the stock
exchange it was a big achievement for amazon as it could now harness public offerings and clear its pending
debt and increase its enterprise value further, listing also meant a general shareholding and participation in
amazon success or failure. This started as a new era for amazon and it started defeating its opponents by clear
margins.
Amazon comprised of 30K workers in 2011 and finished with 1,80,000 workers by 2016

UNIFICATIONS

Venture

• 2008: “Engine Yard, an assistance (PaaS) organization”.

• 2010: “Living Social, a nearby arrangement website”.

• 2014: “Amazon Announces Additional US $2 Billion Investment in India in June 2014”

• 2016: “Amazon Announces Additional US $3 Billion Investment in India in June 2016”

Top functionaries.
• Jeff “Bezos, President, CEO ”

• John “Seely Brown, Visiting Scholar and Advisor to the Provost at University of Southern California”

• Bing “Gordon, accomplice, Kleiner Perkins Caufield and Byers”

• Jamie “Gorelick, accomplice, Wilmer Cutler Pickering Hale and Dorr”

• Judy “McGrath, previous CEO, MTV Networks”

• Alain “Monié, CEO, Ingram Micro”

• Jon Rubinstein, “previous Chairman and CEO, Palm, Inc”.

• Thomas O. “Ryder, previous Chairman and CEO, Reader's Digest Association”

• Patty Stonesifer, President and CEO, Martha's Table”

• Wendell P. “Weeks, Chairman, President and CEO, Corning Inc”.

Products and services

Amazon provides a wide range of products and services and also facilitates the movement of these product and
services all across the globe. Some of its product and services range from, as small as a watch to complex

mechanical, electronic equipment. All these product and services has made amazon a very common household
name and an industrial word of mouth.
Audible.com

Audible headquarters

Audible is a supplier of sound diversion and equipment’s. It also provides e-books and e-journals and magazines. It
is the world’s biggest maker of online book recordings further amazon purchased audible in 2008 and audile
became amazon’s auxiliary.

Third-party sellers

Amazon creates its database and enhances its inventory via wide range of suppliers scattered all over the world.
Hence amazon acts as a facilitator between the seller and the buyer. Further amazon maintains this link between the
buyer and the seller through its online interface.

Additionally small manufacturing enterprises gain heavily from this endeavors as they could reach out to far place
buyers through amazon which is unprecedented. Amazon disclosed its strength of merchants with which it deals in

2007.
Also, amazon web services acts as a provider of computer resources such as storage, computing power
andcomputing processes. It also includes varied forms of cloud computing such as IAAS, PAAS and SAAS.
Amazon's technology

Amazon being a technology run enterprise, excels in modern day technology and it provides its esteemed
technological innovations to U.S navy. Amazon empowers the U.S govt. with very effective technological and
database insights.

Lobbying

Amazon plays a key role in United States development and security. Likewise amazon has a say in govt. functions
and decisions various instance have been documented where amazon manipulated its decisions in its favor. Amazon
is gaining humongous power in federal bank statements and fiscal policies
S.W.O.T analysis

Strengths

Being the largest online retailer amazon has huge market reserves and database, hence amazons purchasing power
makes it beat the competition easily. Being a facilitator Amazon combines the strength of players and adds it into its
own strength. People with small enterprises that have become shareholders in amazon are also enjoying the fruits of
this great success and this has led to a chain reaction wherein more and more entities join hands with amazon.

Weakness

Amazon still lags behind big logistic company such as FedEx in both logistic culture and expertise.Since Amazon
has become a large giant it has made functioning and decision making a lot more difficult than a a small company.

Opportunities
With growing technology by each day and with deep pockets amazon can capitalize any new future technology that
eliminates it competition. With its many distributor’s and suppliers amazon can easily access information on
customer behavior and buying patterns.

Threats

With increasing multiplicity of organizations with in a domain it has becove a grave threat for amazon as each
company fights for market share.In recent years govt. have been emphasizing on cyber security and personal
information hence, many regulations and sanctions have been placed upon e retailers.

Conclusion

S.W.O.T analysis is a key differentiating factor and guide amazon on what to do and what to avoid. Further it helps
amazon in segmenting areas of target and also segmenting areas of improvement.
CHAPTER – 2
2.1 Distribution Network & Logistics

• Distribution “is a significant action in the incorporated supply chain the executives of ceutical items. To
keep up the first nature of ceutical items and respectability of circulation chain, Amazon conforms to
pertinent enactments and guidelines, and carefully sticks to” “Great Distribution Practices” and “Great
Storage Practices”.

Its cutting “edge offices are intended to agree to USFDA rules. All assembling offices have controlled temperature
and relative mugginess, tied down stockrooms for completed merchandise and transportation vehicles to move
completed products from the assembling site to the focal distribution center. Amazon guarantees that merchandise
are delivered in shut, clean and made sure about vehicles. Every vehicle has GPS to follow and guarantee safe
travel”.
Focal “distribution center is explicitly planned and worked with isolated capacity areas regarding explicit
conditions to suit and save merchandise. Completely incorporated innovation and administration meet the quick
need of social insurance advertise from assembling to definite deals and result in cooperative energies of income”.

Reach

• Cities
• Rural areas
• Isolated islands
• Metropolitan cities
• Smart cities

Distribution

• Warehouses
• Operational headquarters
• Inventory stores
• End Consumers”

2.2 Supply chain management

Supply chain is the handling of product and services it includes enhancement of storage of raw materials, work
stock and finished products from initial junction to final junction. Supply chain consists of its structure,
arrangement, handling and verifying of flexibly chain with an aim of making profit. Supply chain management is a
combination of warehousing, distributing, procurement and planning.
For amazon supply chain management is the backbone of its business and hence enhanced warehousing capabilities
and smooth distribution and logistics are key factors.

Strategic level

 Segmentation “of items and clients to control arrangement of corporate goals with
assembling and conveyance technique”.

 Information “innovation chain tasks”.

 Where-to-settle “on and settle on purchase choices”.

 Aligning “generally authoritative system with supply methodology”.

 It “is for long haul and needs asset responsibility”.

Tactical level

 Sourcing “contracts and other buying choices”.

 Production “choices, including contracting, booking, and arranging process definition”.

 Inventory “choices, including amount, area, and nature of stock”.

 Transportation “procedure, including recurrence, courses, and contracting”.

Functioning level

 Daily “creation and dispersion arranging, remembering all hubs for the supply chain”.

 Production “booking for each assembling office in the flexibly chain (step by step)”.

 Demand “arranging and determining, organizing the interest estimate all things considered and
imparting the conjecture to all providers”.

Distribution network

LG “Electronics has a wide and very much oversaw system of sales reps named for assuming up the liability of
conveyance of items to various pieces of the urban areas. The dispersion directs are developed so that the interest of
clients is satisfied at the correct spot and the ideal time when it is required by them”.

A point by point and efficient conveyance framework adds to the productivity of the sales reps. It likewise prompts
low costs, higher deals and higher productivity in this way prompting higher benefits to the firm”.

Distribution routes

The “different courses figured by LG Electronics for conveyance of items are as per the following”:

• Key Accounts: “The clients in this class all things considered contribute a huge piece of the all out deals of
the Company. It fundamentally comprises of associations that purchase enormous amounts of an item in one single
exchange. The Company gives products to these clients using a credit card, installments being made by them after a
specific timeframe for example either a month of a large portion of a month”.

Models: “Small estimated bars and eateries, instructive establishments and so forth”.

• General: “Under this course, all the outlets that arrive in a specific region or a region alongside its
neighboring territories are obliged. The utilization time frame isn't mulled over in this specific course”.
Distribution systems

• Indirect dispersion: “In roundabout dissemination, an association which isn't a piece of the LG Electroz
framework has control on at least one of the appropriation components (Sales, conveyance, marketing and
neighborhood account the board)”

• Merchandising: “Merchandising implies correspondence with the buyer at the purpose of procurement to
pass on item advantage, worth and Quality. Salesmen and conveyance staff both have this duty. In specific areas
exceptional groups who start a new business areas to explicitly stock our items”.
Offices associated with the circulation procedure

The “Distribution procedure primarily comprises of three divisions”:

• Distribution Department: “It selects merchants and builds up a dissemination organize, forms endorsed deal
arranges and gets ready solicitations, masterminds coordination’s.

Account Department:

• It helps in determining and managing the finances and calculating profit and loss.
 CHAPTER-3

DATA COLLECTION
3.1 Research methodology

It involves taking care of exploring and surveying new dimensions so as to segment target areas where new
innovations could incubate and bring change. It should be accurate precise and feasible.

It incorporates-
1. Research topics.
2. Examination Problem.
3. Examination Design.
4. Testing.
5. Examination translation of Data”.
6. Information strategy.

3.2 Data collections

The system by which the required information is accessed by various means.

Techniques for primary information

 Questionnaire Method
 Schedule Method
 Observation Method
 Interview Methods”
Primary data

It is the information obtained by directly approaching the customers through various means example- surveys. This
information could gathered by specialized personals with a proper structured teams. This information is the first
hand information that is collected by the company itself for investigation gap holes and enhancing its business.

Secondary data -

It “is the information which is gathered by others and can be utilized by the company. This information needs to be
filtered and required data is to be extracted. Examples- newspapers, internet, social media.

Sampling Design

Testing “is vital in light of the fact that it is practically difficult to analyze the whole parent populace (for example
the whole universe) different factors, for example, time accessible cost, motivation behind investigation and so
forth make it vital for the scientists to pick an example.

Testing Technique: The Project will be non-likelihood inspecting.

Exploration Type: The task will be elucidating research type”.

Tools for Analysis

- Bar Chart

- Pie Char
 CHAPTER -4
ANALYSIS & ANALYSIS
Q1. “How is your supply chain managed”?

“Specifics Total Answers Proportion

Association With Suppliers 20 38%

Close Partnership With 20 41%

Customers

Just in time 7 13%

E.D.I 3 9%

TOTAL 51 100%”

Analysis:

39% people are fulfilled by the association with the suppliers and 41% with customers
 Q. 2. How effectively are you managing your supply chain?

“Specifics Total Answers Proportion

No Success all time 3 7%

No Success 8 15%

little success 25 50%

Success 10 20%

large Success 3 6%

TOTAL 50 100%”

Analysis:

50% “of the people think little success and 20% think success.
Q. 3. . “Is SCM effective in your firm?

“Specifics Total Answers Proportion

NO 10 21%

Yes 40 79%

TOTAL 50 100%”

Analysis:

79% “of the people fullfilled with SCM and 21% people do not think so.
 Q4. “Organizational SCM?

“Specifics Total Answers Proportion

Superb 2 1%

Brilliant 9 21%

Decent 25 42%

Standard 13 36%

Not Decent 3 4%

Total 50 100%

Analysis:

42% people called it decent and 36% think its standard.

Q5. Availability inside the organization?

“Specifics Total Answers Proportion

Superb 2 3%

Brilliant 15 26%

Good 20 42%

Standard 13 24%

Not-Decent 1 6%

Total 50 100%

Analysis:

42% think fulfilled by availability and 24% think standard availability and few people think not-decent availability.
6. Facilities of organization?

“Specifics Total Answers Proportion

Superb 3 7%

Brilliant 17 33%

Good 20 34%

Standard 9 24%

Not-Decent 2 3%

TOTAL 50 100%”

Analysis:

70% fulfilled by facilities and rest not fulfilled.

 7. What “is the Performance gauge Scheme of Amazon”?

“Specifics Proportion

Brilliant 70%

Good 11%

Standard 9%

Not-Decent 11%

Badly off 9%”

Analysis:

70% people think superb where as 11% thinks standard and 9% thinks badly off.
8. Reason to use Amazon Facilities”?

“Specifics Proportion

Decent price 11%

Better 65%

Easily 14%

Varied 7%”

Analysis:

65% people think- respectable

12% people think- varied categories.

9. For how long are you using amazon?

“Years Proportion

1-3 Yrs 9%

3-4 Yrrs 11%

4-6 Yrs 15%

More Than 6 Yrs 65%”

Analysis:

65% people have used amazon for more than 6 years and 11% have used it for 3-4 years.
10. Logistic “& distribution Administration of Amazon is?

“Specifics Total Answers Proportion

Superb 2 3%

Brilliant 11 18%

Good 20 46%

Standard 18 30%

Not-Decent 2 1%

Total 50 100%

Analysis:

from “50 people, 44% of people says Decent logistic & distribution in Amazon 32% says ordinary and
20%

people say exceptional & distribution and 2% says Not-Decent logistic & distribution management”.
 11. How “the Respondent did come to know about the organization ?

“Specifics No. of People Proportion

Television 23 46%

Magazine 18 36%

Friends 5 10%

Hoardings 2 4%

Others 2 4%

Total 50 100%”

Analysis:

• 46% people got to know about amazon through T.V and 36% by magazine and 4% by other methods.
4.2 FINDINGS

✔ Amazon gives good logistics in items.

✔ Accessibility within Amazon is sufficient.

✔ Free waiver schemes doing good work/

✔ Condition of items is sufficient”.

Analysis:

• • 39% people are fulfilled by the association with the suppliers and 41% with customers.

• 50% “of the people think little success and 20% think success.

• 79% “of the people fullfilled with SCM and 21% people do not think so.

• 42% people called it decent and 36% think its standard.

• 42% think fulfilled by availability and 24% think standard availability and few people think not-decent

availability.

• 70% fulfilled by facilities and rest not fulfilled.

• 70% people think superb where as 11% thinks standard and 9% thinks badly off.

• 65% people think- respectable

12% people think- varied categories.

• 65% people have used amazon for more than 6 years and 11% have used it for 3-4 years.

• From “50 people, 44% of people says Decent logistic & distribution in Amazon 32% says ordinary and

20% people say exceptional & distribution and 2% says Not-Decent logistic & distribution management”.

• 46% people got to know about amazon through T.V and 36% by magazine and 4% by other methods.
 CHAPTER – 5
CONCLUSION AND SUGGESTIONS
5.1 Conclusion

Supply chain is the handling of product and services it includes enhancement of storage of raw materials, work
stock and finished products from initial junction to final junction. Supply chain consists of its
structure,arrangement, handling and verifying of flexibly chain with an aim of making profit.
Amazon.com Inc. is an USA based company founded by JEFF BEZOS. It is the biggest online retailer in the whole
world. It initially started as an online handbook platform.
Amazon comprises of different retail nodes all over the world such as countries like China, Spain, Japan, India,
Canada etcetera. It also provides transportation facilities with in this nation.
Amazon defeated Walmart in its retailers strength competition in 2015and hence became the biggest internet
retailer.
Amazon provides a wide range of products and services and also facilitates the movement of these product and
services all across the globe. Some of its product and services range from, as small as a watch to complex
mechanical, electronic equipment. All these product and services has made amazon a very common household
name and an industrial word of mouth.
Additionally small manufacturing enterprises gain heavily from this endeavors as they could reach out to far place
buyers through amazon which is unprecedented. Amazon disclosed its strength of merchants with which it deals in
2007.
Also, amazon web services acts as a provider of computer resources such as storage, computing power and
computing processes. It also includes varied forms of cloud computing such as IAAS, PAAS and SAAS.
Amazon has earned the capability to compete and innovate in various streams such as IOT and machine learning.
S.W.O.T analysis is a key differentiating factor and guide amazon on what to do and what to avoid. Further it helps
amazon in segmenting areas of target and also segmenting areas of improvement.
5.2 Suggestions

✔ Amazon “provides better logistic & distribution services.

✔ Brands “and products availability in Amazon is Good.

✔ Free waiver schemes are performing great.

✔ Standard of items is perfect.

References

Books referred:

● Shuangqin Liu and Bo Wu, Study on the Supply Chain Management of Global Companies

● “Skills and Competencies That Supply Chain Professionals Will Need”. www.scmr.com. Retrieved 26 July
2017.

● Betty A. Kildow (2011), Supply Chain Management Guide to Business Continuity, American Management
Association, ISBN 9780814416457

● Enver Yücesan, (2007) Competitive Supply Chains a Value-Based Management Perspective, PALGRAVE
MACMILLAN, ISBN 9780230515673

● David Blanchard (2007), Supply Chain Management Best Practices, Wiley, ISBN 9780471781417

● Colin Scott (2011), Guide to Supply Chain Management, Springer, ISBN 9783642176753

● Carol Ptak & Chad Smith (2011), Orlicky's 3rd Edition, McGraw Hill ISBN 978-0-07-175563-4

● “University 100 - SCM World”. Retrieved 26 July 2017.

● “Master Supply Chain and Logistics Ranking master Supply Chain and Logistics”. www.best-masters.com.

Retrieved 26 July 2017.

Web sites:

● http://www.amazon.in/b/ref=footer_gw_m_b_corporate?ie=UTF8&node=1592138031

● https://en.wikipedia.org/wiki/Amazon.com

● https://blogs.oracle.com/scm/5-strategies-for-better-supply-chain-management-in-the-current-

economy

● http://www.supplychainquarterly.com/topics/Strategy/20130306-supply-chain-strategies-which-one-

hits-the-mark/

● https://www.thebalance.com/strategic-supply-chain-management-2221231

Annexure
Q1: Is “supply chain management having all the address of the developer branches of Amazon” ?

a) “Yes

b) No”

Q2: Rate “the working strategies of supply chain management department on the basis of the current

programs in Amazon” ?

a) “Superb

b) Brilliant

c) Good

d) Standard”

Q3: Is “the supply chain management department is having sufficient transportation”?

a) “Yes

b) Not sufficient”

Q4: According “to the current growth process of the organization, which of the following needs much

attention and progress to boost the production”?

a) “Operational activities

b) Tactical activities

c) Current programming strategies”

Q5: Choose “the right option, where the supply chain department is facing problem in taking care of the raw

material”?

a) “During storage

b) Packaging
 c) Testing of packaging

d) Evaluation of defective raw material”

Q6: How “do you rate the delivery activity of the department”?

a) “Brilliant

b) Very effective

c) Good”

Q7. How “your company needs to do in order to manage its supply chain better in Amazon”?

………………………………………………………………………….....

Q8. What “types of systems are currently in use in your company to support Supply Chain Management”?

…………………………………………………………………………

Q9. How “much did you actually benefit from using these systems”?

…………………………………………………………………………

Q10. Do “you have effective supply chain management in your company”?

Yes [ ] No [ ]

If yes, “which process have you used”?

…………………………………………………………………………

If No, “Do you have any improvement”?

Yes [ ] No [ ]
Q11. How “do you manage your supply chain”?

a. “Close partnership with suppliers

b. Close partnership with customers

c. JIT supply”

d. EDI

Q12. How “successful do you think is your company in managing its supply chain in general”?

a. “Not successful at all

b. Not successful

c. Somewhat successful

d. Successful

e. Very successful”

Q13. Who “according to you follow the best branding strategies”?

a. “Amazon
b. others

Q14. In “a month how many times you visit Amazon”?

a) “Once b) Twice c) Thrice

d) More than thrice e) as per requirements”

Q15. Your “shopping experience in Amazon is always”!

a) “Superb b) Brilliant c) Good

d) Standard e) Not-Decent”

Q16. Brands “and products availability in Amazon” is?

a) “Superb b) Brilliant c) Good

d) Standard e) Not-Decent”

Q17. Discounts “and offers served in Amazon is”?

a) “Superb b) Brilliant c) Good

d) Standard e) Not-Decent”