Dear Aiyman,

Thank you for the valuable post and please accept my additions. Regarding Amazon's supply chain
management let me just highlight a one of the most important supply chain strategies Amazon follows
which is push and pull strategy.

Push-based strategy is the long-term outlook that controls production and distribution decisions.
In this type, the demand forecast is based on the requests received from the retail warehouse.

While, Pull-based strategy means “make on order” upon which production is based on actual demand.
Production depends on the actual demand of customers, not on the expected demand. In this type, the
company does not have any inventory and only responds to specific orders.

The new supply chain strategy is recently incorporated into the strategy that takes the best of both.
Push pull supply chain strategy
 Nowadays, no businesses depend totally on only push or pull supply chain, but use a combination of
the two to make the best use of them.

As Amazon one of the biggest online retailers, Push and Pull logistics are a big part of their inventory
management. Amazon’s warehouses are strategically located, getting closer and closer to major urban
areas and city centers. As a result, it uses a pure push strategy for the products it stores in its warehouse
because it depends on demand expectations for the final stages. On the other hand, uses a pure pull
strategy is used when selling products from third-party sellers by using the day-to-day order fulfilling
form in order to reduce the risk of unsold inventory.
Amazon is conducting serious studies before building its warehouse, thinking strategically before
construction and storage. As you said, Amazon is implementing very successful strategies in managing
their supply chain, including the push and pull strategies. Push strategy for products that are stored in
its warehouse, and pull strategy when providing products from third-party sellers by using the day-to-
day order fulfilling form.

Bibliography
Amazon.com, Inc. (2019). About Amazon. Retrieved January 08, 2020, from Amazon web
site: https://www.aboutamazon.com/?utm_source=gateway&utm_medium=footer

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning and Operation, (6th,
ed.) (global edition), Pearson Education.

Leblanc, R. (2019, October 15). How Amazon Is Changing Supply Chain

Management. Retrieved January 14, 2020, from The Balance Small Business:
https://www.thebalancesmb.com/how-amazon-is-changing-supply-chain-
management-4155324

Sharma, T. K. (2018, April 22). WHAT IS PUSH AND PULL STRATEGY IN SUPPLY
CHAIN MANAGEMENT? Retrieved january 14, 2020, from www.blockchain-
council.org: https://www.blockchain-council.org/blockchain/what-is-push-and-
pull-strategy-in-supply-chain-management/