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Supply Chain Information Management - Assignment Example

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Generally, the distribution channel refers to the means through which business chains or even their intermediaries transfer their goods and services to the end consumer. Traditionally, according to (Wang 2013), the distribution channel is composed of the wholesalers, retailers,…
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Supply Chain Information Management
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Download file to see previous pages This paper evaluates the Amazon’s distribution channel and its evolution.
Amazon started in 1994 as a book store that was launched by Jeff Bezos and it took its shape of the since then. Notably, Amazon was initiated on a value proposition anchored on four dimensions. The four dimensions helped Jeff Bezos to focus on service to the customer, the price, selection and the convenience of the products and services it would offer online. The Amazon online inventory consisted of many items and this offered the customers a wide range of choices as compared to any physical store. Moreover, the website was constructed such that it kept the download period very low while offering platforms for reviews that were later used for its improvement.
Originally, the online store was constructed such that customers for books would be satisfied by being supplied from the warehouse of Amazon while it enjoyed its benefit of time and cost efficiencies. As such, the Amazon built several ten warehouses that were situated in ten states with least or no tax for sales (Jansen, Bernard, Amanda & Isak 2009). Amazon would then order books from the warehouses after customers had agreed to pay for them and hence low return costs. After a period of time, the Amazon warehouses were increased worldwide and also the number of products stored in the warehouses increased. The products in the warehouse were well kept and computerized so that the number lines of a product in the warehouse matched those of the product stocked online. When a customer ordered a product, for example, a book, automatically the order mentioned the title of the product and then a barcode. As a result of this process, computers would then signal the workers that a particular product was not supposed to be on the shelf and then they would verify the order and pick it for parceling.
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