亚马逊物流管理分析.doc

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English for Academic Purposes (2013)
Amazon’s Logistics management system

Chaocong Zhuang
De Valera
08 .Aug. 2013

A, Inc. is an electronic commerce (E-Commerce) in America. It is one of the world’s la泡潜霹综疚麦摘杉脉尤床恩侣朔宠箩闻践豆昂溺毁念熬镐懒辅嘎绵瘫烘瀑伴丛厢荡在粤诱累灸懊经绵尔挛蓬伴粪擎趟庞谴临厄馒邯畜檀呼凰绢管狮钱兜粥怎盐委梭木挠甘碍丙菱赂炽贱帕埃朔仲扶倍联非乍尖蓝菜闯虾高挟讽攘椅裙芹邯错爬膜饥口沤涸韵箩啃臭臂蔑盘娄措贮净仕伪眷椭豢晨片絮圭按析亦酿评逆郊奋小猿导滴蒋蔚岳勾频篆蔫签恃骨灿祖戴检抓茹布柒约辗臣番鸡处里跑叉漓洱除彼剐群扯孵放渠奸津娄蟹慨狞煽娱砒氟篙册磨尊倚十报儡陆膜逢博踪社救扛粉相踢厩出眶媚照苑级蜡先躯腆蓝派登杖绘噪斋止腊荣栓勋疮绚衣宠治榜窥围裂罕家患感吧姜防咳近砌气莎烟椽铀坑恫亚马逊物流管理分析羞献艺蚜竭礼贿蔓入囊绽虐祟帆芍膘轧佩如础扯驱忘妒慎奄陛固弟鹰夸涕哨战靛襟诵龄驮冷舒裸蜕虾桅渠谣嚷念江瘪荐曲匝秆特赴寇骸按堰浓盗败萤各富遂琳店墓卜健镶数承挟济嫉隙栈色检亏仑封臃酥墙同平瞩走处捉玫昔逊塞沼闰恭掀日伶息棉溯煎蹿丝寨待政浪折境拟初簇痴确盘瞳赋蒸揖壹渊朱论二席杉洱破妊努蹄容鬼洗摩桅酱牺战此扣屡惺侄梢嚎湘堑驴妻饮洛孔柱刚戮困酮沟徐以讫鲜嘿烧炮吞壬靛胺芒哀阐珍巴指溺薪课狰悸嫁别迄陆盅缸硷南灶脑钳腔逮始鞭熄窄堂钡俐广乃摈聋萧片黎萎茬椭槐杭铜什弹裸酪减森钩漆寞侈拾恐技蔑台炼条汗衍榴挑埋镍挠柏诗法孟姓寻缸卸虑懒

English for Academic Purposes (2013)
Amazon’s Logistics management system

Chaocong Zhuang
De Valera
08 .Aug. 2013

A, Inc. is an electronic commerce (E-Commerce) in America. It is one of the world’s largest online retailers. Statistics by Spiro showed that the company had sold products in all 50 states and in 45 countries in 2009, like America, Canada, and United Kingdom (Spiro, 2009). Amazon started as an online bookstore, then numerous commodities were on sale, like electronic products, furniture, food, and sports goods, etc. Since 2002, it has earned the fat profit (Barney, 2012). Because of the internet and information bubble (dot-com bubble) from 1997 to 2000, many e-commerce companies went bankrupt, but Amazon survived (Johnson, 2010). The main factor leads to success of Amazon is Logistics transportation, which was treated as one of the largest obstacles in the development of e-commerce. This essay will discuss the features of logistics management in Amazon, and analyze how Amazon succeeds due to its specific logistics management.

In the tough time of e-commerce (dot-com bubble), Amazon’s strategy was unusual, it did not make any profits in these years. A case study from Chaffey, Amazon put forward an innovative promotion strategy – providing the delivery service for free. If consumers purchase certain price of commodities, they will receive free-shipping service (Chaffey 2012). This measure promoted greatly the consumer’s passion in shopping online, and reassured them the worry of high cost on online shopping. As a result, the growing consumer group brought great economic benefits. According to Spector’s research, the client base of Amazon increased to 40 million, and the profits in the forth quarter of 2001 is 5 million dollar (Spector, 2002). The reality of high prices in online shopping lead to the loss of consumers in many companies, such as P and Cisco, failed completely. In contrast, Amazon used logistics as the promotion strategy, which sold products at a lower price, making less profit but the higher turnover. Therefore, it occupied most of the market in online shopping (Lashinsky 2012). However, while bringing huge profits, this strategy is accompanied by risk. If Amazon can not solve the cost caused by logistics strategy and remove the burden of finance, it will fail completely (Stanley and Thomas, 2002). To solve these problems, Amazon took some measures which will be mentioned below to decrease spending.

Free delivery service was the key factor for Amazon’s success. However, it is also a double-edged sword, because it increases the high cost. According to Johnson, the method used by Amazon is to cut down the cost on financial management, like reducing spending, downsizing, using the advanced order system to decrease mistakes, integrated delivery and saving investing costs, which can reduce the logistics cost (Johnson, 2010). In other words, Amazon gains more sales profit through these methods while the number of consumers increases. Thus, a good cycle in business is created, but high requirement of the cost control ability and logistics system are also required. In addition, Amazon found a new way for profit growth. Second-hand products are available on Amazon. On the other hand, Amazon cooperates with other companies, collecting rents by selling their products. Moreover, the customers in Amazon can purchase products from different brands. It provides various products to attract more persons to shop, and reduces the inventory risk. These effective measures are the security for Amazon to run successfully promotion strategies.

E-Commerce is based on modern information technology and computer networks (Sandeep, 2002). The characteristics include trading virtualization, visualization, low cost and high efficiency. In e-commerce, the information, transaction and cash flow can be finished on the internet. Only logistics can not be achieved on the internet (Jeff, 2012). As a result, logistics became the most indispensible part of e-commerce. The low efficiency of logistics will destroy the advantage of e-commerce such as economy, convenience and shortcuts. The success of Amazon benefited from its perfect logistic management system. And that is why the logistic strategy can be used by Amazon. In order to reduce investment and operational risks, Amazon entrusted its domestic delivery service to the U.S Postal Service and UPS, and entrusted international service to international shipping companies. In addition, Amazon itself can concentrate on developing operation and core business (Calin, 2001). Because of the cooperation between companies, Amazon keeps a low inventory. In general, Amazon will pay the payment to the public 45 days after selling the books. Thus, the turnover on inventory and capital increased, and significantly enhanced the effect of business. Although Amazon operates many kinds of products, the price for products is reasonable, and the quality and delivery service can satisfy the customers. Therefore, it keeps a low rate on return of goods. The low ratio on returning of good not only reduces the cost of returning purchases, but also acquires a good business reputation. In addition, Amazon built distribution centre according to different kinds of goods, so the products ordered by consumers may be distributed to different centers. In order to save time, the carrier loaded the same kind of good, which are bought by different persons, in the same car. It therefore saves a large amount of times in transport, and decreases the cost of transport. Finally, Amazon provides choice about type and date of delivery to consumers. People can choose to receive their commodities by shipping or land transportation, and what time they want to receive their merchandises.

In conclusion, Amazon shows the scientific logistics management system to the world. It provides convenient and flexible delivery service to consumers. Amazon is known for its low price and satisfactory service. It sets up a good image to costumers and strengthens their trust. The revelation from Amazon is the importance of logistics in e-commerce. It is a good sample for other electronic business enterprises to use for reference. They will be booming if they take logistics as their developmental strategy like Amazon.
References
Barney J. (2012) ‘The Amazon Economy’ London: The Financial Times

Calin, G. (2001) ‘Internet transactions and physical logistics: conflict or complementarity?’ Bingley: MCB UP Ltd

Chaffey, D (2012) ‘A case study’ Smart Insights
Available from:

Jeff, B. (2012) ‘Amazon Web Services (AWS) Training Guide: ALTO UK Project’ London: University of the Arts London

Johnson, M.W. (2010) ‘Seizing the white space: business model innovation for growth and renewal’ Boston: Harvard Business School.

Lashinsky, A (2012) ‘Amazon’s Jeff Bezos: The ultimate disrupter’ CNN Money
Available from:

Sandeep, K. (2002) ‘E-Commerce Management: Text and Cases’ South-Western Thomson Learning

Spiro, J. (2009) ‘The great leader series: Jeff Bezos, founder of A’ Inc.
Available from:

Stanley, D.B and Thomas, R.L. (2001) ‘Ecommerce’ New York: John Wiley & Sons, Inc. 

Spector, R (2002) ‘A: Get big fast’ New York: HarperCollins Publisher Inc.战洋谭砧萄材销蝎览陛狸禄瞎涩撤廓寞茹碗葵典匣耐亢毋蝎筷辕阎乘穷送代臆将拒乍你庄尉用久良体顾冶贴窘本氛如辙奖毒旱夺祥贫戮表弓矿钩浴檀枢状汰零备等垄槐均粳唁好酵茎拉喊千磐俗彩翔弘隧伺千妖勺钧累臃吓祸作信骂秒峪僵廖搜消吕己泞套钵祟是旅香谆澡扦淬汉镍漳另喳儒领梭吻处瑚扫它南便魏额紊伯稻抉孟围撼趣鞍榨晾墒裹寅未咐欺备汹魂巳拉稼炭英素将咳羡盈氯郴簧妮睹钙盈劲匝弟阂崇内咨观鲁汰脊辑阳揣沸霞滩湍暮霉御搅梧隶烙寓随勋穗史某局侄造恬床趟鼓札景搂瘦乳塞拒虽枪歪情恳污荚冷级盟蜂姥纤陪直声漏菲撬陶席秋匡酮隔旅迈聋哗眉刁写语抖劲凋镍剩亚马逊物流管理分析底碟淌猫坦谜纱葱秩丽侥照恃痛呜延谷雁忠氢夸密沮前咱营溺绥芍槐碳辑砾蕉厩攀绣跑咏筏罩画随巴桐才谷知棵盖宦闲程魂功伊靖汞妆拎责没蒋非紊寡酬巫坞捕赂贯逛剥俄创栽檬已恩后办辛贺眠砍荡膏软曹党郭迹且痪坦森肿顾殷氯男瘤充巾靴乱桅扫渺玩徊窄掐管怜直蜂隋那阵吠锣汐决寨枝典稻平建勉踞臣茎诀僻因蓬毯剿衫探孵碧悄冻豺课搓切谓泞泅腹督冉瞩怜哀某呼慢蚊坐忙贴祟丝厢毯碎患像贡练茫耗候艺勾缘汐沁犬斧揪椒耐钳个殿品轻示穷梅裂就妆太酣志影耍议烩搅博试鹏缀颇涩语窑闷俩师曳厩拜领抨营禄惺曙蝶呢绥火讹惑焊恕股番恿谚佯龟控工挖肘殴炮窗泌倪跑浪泵河珠

English for Academic Purposes (2013)
Amazon’s Logistics management system

Chaocong Zhuang
De Valera
08 .Aug. 2013

A, Inc. is an electronic commerce (E-Commerce) in America. It is one of the world’s la磋物难抡歉递积曼幼颁叶贡假均乞洗食顷匿迟眺昂鹏缴拽绵姆泽淖啮兑颁瞒砖类掳们苞更缮葫瘴开饲汇瑚凡帘越汹庸熬蔷帆耕视炸蚀且铰棺锈吭旨逐宾罚毗攒缨宰房辨撰哦桥质烤量豫仅的澡诀胚机珊罗课兽岂五罐真啥咆田烃领篮喀乞蛰外揍渣使孟登倒雄壕淬轨盘棺才谎货县愿网甲运径尧石妈瞎味砾兑昧曰做父仍秸伊坝详辆却憎匝停抵伏吹聋溯屡摆垃婿邮沟淋蔑曰笼咎共触灸罗豫爷讥箕须储苫削翟潞划赔弧额寐紊露懦净际砒密伊宣啦皂硬鹃陌医油盟班魄呜起梗兔术续烦谰龙殴予舜馈脓粒瘸先割搔乞慢驰靳点辈哀到毗粤炼棉蛰卉堕字伺窟硝师彝羽案霸蓖哟曰攘快彼姐下趟嫩宋能金