Group Assignment

TOPIC:………………….

Course: SCM201
Group members:

Name of group member Code

CS150057
1. Vũ Ngọc Hiếu

2. Phan Ngọc Châu CS150064

3. Nguyễn Tùng Linh Vy CS150801

4. Nguyễn Hoàng Thanh Vy CS150111

 I.                     Introduction

With the development of the Internet, 4G, and mobile devices, especially smartphones and
thousands of bank cards issued every day, Vietnam's e-commerce is growing strongly and
explosively in the coming years, according to the survey. A Survey of the Ministry of
Industry and Trade shows that more than 70% of consumers prefer to shop online.
However, the e-commerce industry in Vietnam still has many shortcomings and
vulnerabilities such as weak information security of both buyers and sellers, holes in
inventory statistics, many unknown sources of goods, original, poor quality products are
also released,...To be able to find a solution, in this assignment, our team will report on the
supply chain of Amazon - a multinational technology company. America and is one of the
most successful companies in the world in the field of e-commerce. Our goal is that after
learning about Amazon, we can compare the supply chain of Vietnam's e-commerce
market with Amazon, from which we can draw lessons to help develop the e-commerce
industry death of the home country

II.                   Rationale for supply chain and supply chain management

1.       Overview of the supply chain

The supply chain is the process by which an organization produces a product from raw
materials supplied by different companies and then sold to customers. Depending on the
size of the organization and the number of products produced, that supply chain can
become complex or simple.

2.       Supply chain management

Supply chain management is the management of the flow of goods and services and
includes all processes from transforming raw materials into final products. Supply chain
management is concerned with the streamlined organization of a business's supply-side
activities to maximize customer value and gain a competitive edge in the marketplace.

Supply chain management is a combination of art and science to improve the way
companies find the raw materials that make up products and services and then produce
them. and distribute it to customers. The key to any supply chain management solution,
whether producing goods or services, is understanding the power of resources and how
they interrelate along the chain. production supply chain.

The activities in the chain are summarized in 4 steps including strategic planning, sourcing,
production of finished products and distribution to customers.
  

3.       Features of supply chain management in Vietnam

Nowadays, in the current economy of Vietnam, logistics plays an important role in

production and business activities of many enterprises, citizens and as well as the entire
operation in the economy. However, logistics in Vietnam is still at a low level of
development, which has not fully promoted the role of linking economic entities and
activities in the national economy system. Therefore, logistics development is an urgent
issue for policy makers as well as enterprises.

Below is the classic supply chain model of the e-commerce industry in Vietnam:
 

III.                 Research methodology and design

1. Research process

a. Research purposes

Get to know the multinational company Amazon in the e-commerce market. Assess
strengths and limitations, thereby comparing the supply chain of Vietnam's e-commerce
industry with Amazon to find solutions to develop products of Vietnam

b. Research mission

 The assignment presents research on Amazon's supply chain operations with the following
contents:

- Amazon input supplier and supply chain management issues

- Warehouse and storage management in Amazon supply chain management

- Location and layout of Amazon

- Manage shipping and distribution of goods to consumers in Amazon's supply chain

management

- Activities in Amazon's supply chain management

- Applying information technology in Amazon's supply chain management

-General review of Amazon's supply chain management

- Find out product development solutions of e-commerce companies in Vietnam

c. Object and scope of the study

 Research object: supply chain and supply chain management activities of Amazon
company.

d. Research scope

 - About the content: the assignment focuses on collecting actual data on supply chain
management activities, data on Amazon's performance, and a brief overview of the e-
commerce industry in Vietnam.

 - About space: the assignment studies the supply chain operations of the American
company Amazon.

 - About time: the assignment uses data collected on Amazon in the period of 2019 – 2020

2. Model applied in the assignment

 In this assignment, we used the SCOR model and the SWOT model to apply our thesis
analysis

a.       SCOR Model

SCOR (Supply Chain Operation Reference) model is a reference model for Supply Chain
operations; provides a foundational structure, standard terminology. To help companies
unify management tools, redesign business processes, compare, and analyze practices.

SCOR helps companies develop and manage an efficient Supply Chain structure. It also
explains the processes along the entire Supply Chain and provides a basis for improving
those processes. Process Reference Models integrate well-known concepts of business
process engineering, benchmarking, process measurement, and organizational design into a
cross-functional framework. The Supply Chain Operations Reference Model (SCOR) links
business processes, performance metrics, practices, and people skills into a unified
structure. It is hierarchical in nature, interactive and interconnected.

SCOR Model is formed based on 4 main platforms:

- Performance Metrics: Basic matrices to measure the performance of the Supply Chain

- Process Matrix: Describes the basic management processes in the Supply Chain and
provides an operational framework for the relationship between the processes.

- Practice Matrix: Manages performance to provide practical guidance for maximum

effectiveness. Bring a competitive advantage to your business.

- Implementation guidance matrix for supply chain employees (People): Professional

training process and skills needed to do the job.

b. SWOT Model

SWOT is one of 5 steps to form an enterprise's production and business strategy, including
establishing corporate principles, SWOT analysis, defining strategic goals, forming
strategic goals and plans. strategy, defining strategic control mechanism. SWOT is an
abbreviation of the first letters of the English words: Strengths, Weaknesses,
Opportunities, and Threats - is a famous model in the analysis. the business of the
business. I will talk more about the function of each letter:

+ Strengths: Skills or abilities that allow an organization to create and execute its strategies

 +  Weaknesses: A skill or ability that does not allow an organization to choose and
implement strategies that support its mission

 + Opportunities: The regions in that environment, if mined, could produce higher

performance

 + Threats: Sectors that increase the difficulty of an organization performing at a high

level.
III.Supply chain and supply chain management applied in the company

Amazon Corporation Overview:

Amazon.com, Inc. is an American multinational technology company headquartered in

Seattle, Washington with a focus on cloud computing, digital streaming, artificial intelligence,
and e-commerce. The company is considered one of the Big Four technology companies along
with Google, Apple and Facebook. Amazon is known for changing the mindset of established
industries through technological innovation and large-scale development. The company is the
world's largest e-commerce marketplace, AI assistant provider, and cloud computing platform
as measured by revenue and market capitalization. Amazon is the largest Internet company by
revenue in the world. It is the second largest privately held company in the United States and
one of the most valuable in the world. Amazon is the second largest technology company by
revenue. Amazon was founded by Jeff Bezos on July 5, 1994, in Bellevue, Washington. The
company started out as an online distributor of books but later expanded to sell electronics,
software, video games, apparel, furniture, food, toys, and jewelry. Amazon distributes
downloads and streaming of videos, music, and audiobooks through its subsidiaries Amazon
Prime Video, Amazon Music, and Audible. Amazon also has a publishing arm, Amazon
Publishing, a film and television studio, Amazon Studios, and a cloud computing subsidiary,
Amazon Web Services. The company also manufactures consumer electronics including
Kindle ebook readers, Fire tablets, Fire TVs, and Echo devices. Additionally, Amazon
subsidiaries also include Ring, Twitch.tv, Whole Foods Market, and IMDb. Currently,
Amazon has established its own websites serving 6 markets: Canada, United Kingdom,
Germany, France, Japan and China, serving more than 17 million consumers in 160 countries.
Amazon has built a very good care service, from those who just visit the store to those who
are long-time customers. Therefore, customers always feel satisfied and always trust to buy on
Amazon.

Achievement: In 2015, Amazon overtook Walmart as the most valuable retailer in the United
States by market capitalization. In May 2017, Amazon shares hit $1,000 per share, achieving a
record 40% year-over-year growth. Cohan even predicted the company's stock value could
continue to rise and hit $2,000 in 2019, Amazon's acquisition of Whole Foods Market for
$13.4 billion, which has increased Amazon presence as a brick-and-mortar retailer. 2017 is
also a milestone in the company's history, with Amazon reaching 100 million prime
membership for the first time. In 2018, Bezos announced that their two-day delivery service,
Amazon Prime, had over 100 million subscribers worldwide. Since nearly 10 years ago,
Amazon has always kept a growth rate of 20% a year, a level that is said to be unbelievable
for such a giant corporation. To date, Amazon boasts 110 fulfillment centers in North America
and nearly 800,000 employees.7 To make good on its promise of increasingly faster
deliveries, the company has placed many new warehouses near local urban markets.
(Walmart's online strategy in China now also uses a closer-to-customer responsive model,
operating a network of small warehouses.)

The supply chain model our team chose for Amazon's supply chain analysis is SWOT and
BSC (BALANCED SCORECARD). We will analyze the theory of these two models before
applying the model to Amazon's supply chain.
SWOT model:

Strengths (S): This is an important factor inside the business, helping the business to have a
positive view, bringing advantages to help you quickly complete your goals.

Weaknesses (W): Are the weaknesses of the business compared to competitors. Weaknesses
also come from within the business.

Opportunities (0): An opportunity is a factor belonging to the external environment that has a
positive impact on the development of the business

Threats (T): are also external factors that negatively affect the business, are barriers that
reduce the productivity and efficiency of the project.

Model BSC (BALANCED SCORECARD):

This is a strategic management model at the most basic level, orienting businesses throughout
the process of setting up, implementing, monitoring and measuring the results of the set
strategy. In addition to financial factors, BSC focuses on three other non-financial measures
that affect the performance of the business: customers, internal processes, and learning &
development. The model includes 4 factors that are considered as 4 measures of business
performance. They are arranged in a certain order and influence each other from bottom to top
according to a predetermined plan.

Amazon Supply Chain Process:

Step 1: Customer places an order

Step 2: Warehouse staff receive orders with corresponding product and line information

Step 3: Products are placed on a conveyor belt, passing through the distribution center.

Step 4: Products arrive at our central point, barcodes are matched to the order and sorted
automatically.

Step 5: The unit row is placed in a mailbox.

Step 6: Outline customer orders.

Step 7: The mailbox is packed, glued and weighed.

Final step: The box is shipped to the customer by Amazon merchandise vehicles.

First, we will do a SWOT analysis of the Amazon supply chain.

Strengths (S): Brand Valuation - According to Interbrand's Global Brand Ranking 2020,
Amazon is ranked 2nd (Apple is 1st and Google is 3rd), with a brand value of $200 billion la. 

Cost leadership. Amazon incurs no costs in maintaining physical retail stores by selling
everything online. With economies of scale, Amazon effectively controls costs and reduces
inventory replenishment time. The company has established many strategic alliances with
many companies such as Evi Technologies, Thalmic Labs, Shoefitr, The Orange Chef, etc. It
has a robust value chain system that also helps maintain a low cost structure. Meanwhile, in
Vietnam, large e-commerce sites such as Tiki, Shopee, and Lazada cannot overcome this
problem because the model is mainly serving domestic customers, so the supply chain with a
small scale is still limited. unpopular so consumers sometimes have to bear a large fee because
supply chains do not have many alliances to reduce delivery costs. 

Superior logistics and distribution systems . Amazon uses highly efficient logistics and
distribution systems. It even has flat rates for different delivery periods. Therefore, it makes
reliable, safe and fast delivery of goods and products to customers. Global Strategy and Local
Action - This strategy has benefited Amazon the most. Amazon develops partnerships with
local supply chain companies that help them compete with domestic e-commerce rivals. It
understands local needs and launches its services according to the culture of the country. For
example, in India, they launched the “Aur Dikhao” market campaign to encourage users to
search for more of their products. Largest selection of merchandise - offers branded lines in
everything from household products to pets to babies, and the list of these labels is constantly
growing, featuring a wide range of products. rich, attract online customers who make most of
their purchases from there than other online retailers. As of 2018, Amazon has sold 562.3
million products on its Amazon.com Marketplace. Raise minimum hourly wage to $15 per
hour - Amazon was one of the first companies in the retail sector to raise its minimum hourly
wage to $15. Meanwhile, Target pays $12 per hour, Walmart pays $11 per hour, and Costco
pays $14 per hour, one of the attractive salaries that workers can take to ensure job security.
The supply chain is stable.
One of the strengths of the supply chain is new economic models, powered by technology
innovation, provide alternatives. One such model is the circular supply chain. This model,
with the help of blockchain and artificial intelligence, provides full visibility of a product from
the producer to the consumer—and even beyond recycling and reuse.

Information about the producer empowers the consumer to behave responsibly and reward
best practices. For the producer, such rewards realign financial incentives, supporting
sustainability and reducing waste. Moreover, producers and distributors can more effectively
manage their inventories by aligning their product with changing consumer demands.
Accenture’s vision of the circular supply chain combines supply chain, blockchain, identity,
biometrics, and payment capabilities. To make this vision a reality, Accenture is working with
AWS, using services such as Amazon Managed Blockchain. Blockchain is relatively new and
is reinventing traditional ways of doing things. But technology is only part of this
transformation. That is why we are also working to build an ecosystem of mutual trust and
understanding. For example, while blockchain, in theory, removes the need for a centralized
store of trust, this is often misunderstood. Any system requires accountability, liability, and
someone to turn to when things go wrong. Identifying and unifying trusted parties remains
critical. With a unique, verifiable digital identity, consumers could identify and directly
reward small suppliers around the world that are committed to following sustainable practices.
Just imagine the impact of more people being able to fully participate in the global economy.
With track and trace, their goods could take on an identity, as well, providing the consumer
with verification of product origins and a line of sight into each of the steps it took along the
way. Working with AWS, Mastercard, Ever ledger, and Mercy Corps helped us address the
technical and organizational challenges.

We built this solution on AWS. Robust, reliable cloud infrastructure is key. It enables us
to experiment, deploy, and scale. It streamlines management and maintenance so we can
focus on driving business change. Implementing blockchain at scale is a complex
endeavor, so we chose Amazon Managed Blockchain, which is a fully managed service
that allowed us to set up and manage a scalable blockchain network with just a few
clicks. It automatically scales to meet the demands for running millions of transactions.
 We also collaborated with AWS to provide one-click advisory services for blockchain.
Together we are driving change at scale.
As blockchain continues to mature, forming effective ecosystems becomes the greater
challenge. To be successful, blockchain initiatives must drive value for each participant,
enable effective decision making, and support good governance. By focusing on the
mutual benefits of working together for producers, distributors, retailers, and consumers
we all have the power to create a unified ecosystem that can make positive change in the
way the world works and lives. 

Manufacturing sector: Amazon is not just a retail giant anymore. Currently, the company
makes a wide range of products including batteries, backpacks, Bluetooth speakers, iPhone
chargers, dog poop bags, and more. Its product manufacturing arsenal continues to expand to
include more and more categories. Amazon understands that it can manufacture many of the
third-party products it is selling to customers for much less. The company's large output
naturally allows for low-cost production. As a result, Amazon's manufacturing sector is
making it financially stronger while taking market share from many manufacturing
companies. This manufacturing support for its retail operations presents Amazon with an
important revenue growth opportunity.

Next is Amazon's warehousing system. They have successfully used the Pull-Push strategy for
the supply chain. Amazon's own warehouses are strategically placed and stocked, moving
closer and closer to major metropolitan areas and city centers, and inventory is spread between
these warehouses so supply can meet demand. There are even small warehouses in smaller
areas to ensure orders can be dispatched and delivered quickly, no matter what is being
purchased. Warehouses are also optimized internally. Each with five unique storage areas, the
organization's strategy allows team members and picking and packing robots to pull products
almost instantaneously and deliver them to their destination. Plugable Technologies, founded
in September 2009, is just one example of a brand that has been able to successfully establish
the goal of “building a better appliance company” – thanks in large part to its execution. seller
strategy and FBA automation.

Besides, it uses a pure push strategy for the products it stores in stock, forecasting demand for
specific regions. On the other hand, it uses a pure pull strategy when selling products from
third party sellers, uses more order fulfillment models, due to high traffic on Amazon
websites, a large number of third-party sellers have joined Amazon's platform to sell their own
goods. Data from Fulfillment by Amazon (FBA) reveals that there are more than 2 billion
items available from third-party sellers, one of Amazon's lures. 

Next comes in terms of shipping, One of the biggest differentiators between Amazon's supply
chain strategy and other online retailers is the wide range of shipping options on offer. Sure,
those options include free two-day Prime shipping and even a Prime Now option, which gets a
product from point A to point B in under two hours. But where is the bigger game changer?
Amazon uses a range of strategies — from more traditional to ultra-high tech — to get its
products to market in lightning time and around the world. There are drones landing in your
backyard or rooftop, there are Amazon-branded delivery vans and vans, and there are even
bike deliveries in some areas. The retailer also utilizes existing delivery routes through Fedex
and UPS. These broad-based strategies allow the company to fulfill orders faster, easier and
more efficiently to essentially anywhere in the world - even rural and remote areas. not served
by traditional options. “Many online shoppers already have a deep loyalty to shopping on
Amazon and are Amazon Prime members, which makes them more likely to click on the
products being advertised by Amazon. If shoppers know they can get free two-day shipping
and experience unmatched customer service with Amazon, they will often choose them over
lesser-known retailers” Pat Petriello, Director, Amazon Strategy at Tinuiti (how to run a
supply chain intelligently).

Weaknesses (W): Limited traditional presence - Amazon owns very few physical stores. This
sometimes hinders attracting customers to buy things that don't sell on online stores. Tax
avoidance controversy - Tax avoidance in Japan, UK, and US has caused negative publicity
for Amazon. President Trump criticized Amazon for taxes on social networks. Product flops
and failures - The launch of the Fire Phone in the US was a huge failure while its Kindle
firefighting device didn't even thrive. Easy Business Models - Online retail businesses have
become quite common in this digital world. Therefore, it is not too difficult to imitate
Amazon's business model for rival companies. Some businesses are even giving Amazon a
hard time. These include Barnes & Noble, eBay, Netflix, Hulu, and Oyster, and more. Relying
too much on distributors - Relying on distributors causes Amazon many problems. One of its
main distributors (German Logistic Group - Deutsche Post DHL) could use its position to
renegotiate terms.

Opportunities (0): Amazon may win an opportunity to enter or expand operations in

developing markets. It can be said that Amazon's supply chain is successful thanks to the
application of information technology in the company's supply chain management. 

These include Self-Driving Technology. Amazon recently acquired California-based self-

driving startup Zoox Inc for $1 billion. It can now leverage autonomous technology to tap into
the surge in demand for ride-hailing services, or use it to improve its delivery network. 

Launching electric rickshaws in India. Amazon is committed to making a positive impact on

the environment. With this vision in mind, Amazon plans to deploy 10,000 electric trailers for
delivery in India by 2025. Backward integration can be done by expanding production of in-
house brands like Amazon basics to differentiate its products and improve profit margins.
Amazon has the opportunity to improve its technology measures and organizational policies to
reduce sales of counterfeit goods. A case of fake sales came to light when Amazon sold fake
My Critter Catcher. The product was selling for $1 less than the original product, and by
expanding its physical stores, Amazon was able to improve its ability to compete with big box
retailers and attract customers with trademarks.

 Besides that, the Company has also adopted drones, launching Amazon Prime Air. These
tools not only improve a company's efficiency and delivery speed, but also cut warehouse and
employee costs - freeing up funds for other logistics or supply chain needs. The advantages of
technology and innovation on the line have contributed to Amazon having many opportunities
to compete with major competitors.

Robotic warehouse: Barcodebased item tracking has evolved into a complete digital network
that can efficiently relocate items. Automated robots can pick, pack and sort shipments with
almost no human need. Amazon's inventory management strategies manage the goal of
Optimize shipping methods and tailor operations to employee and partner requirements.

Cloud computing. The company has its own cloud solution, Amazon Web Services  that can
be integrated with inventory management software for smooth and efficient inventory
management. Amazon's supply chain model is so efficient it's not natural that the company has
ramped up in such a short period of time. It's the smart organization of supply chain
management processes and tons of warehouses that are key to a successful business.

Threats (T): Besides strengths and development opportunities, Amazon has also been facing
great challenges. Fake Reviews - Amazon has a large amount of fake reviews, and the
problem has been made worse recently due to the pandemic. Product reviews are an important
indicator of quality and authenticity, and customers largely rely on reviews to make a
purchase. According to an investigation by the Financial Times, Amazon has removed more
than 20,000 fake 5-star reviews from top UK reviewers. Recession - Amazon is not immune to
recession. If the uncertain economic situation worsens, it could affect Amazon's sales. Fierce
competition with big retailers like Walmart and eBay could put Amazon in trouble in the
future. Government regulations could also threaten Amazon's business practices in several key
countries. Amazon does not ship to Cuba, Iran, North Korea, Sudan, and Syria. In addition,
now Amazon competes with the following companies:

In video streaming services: Apple TV, Netflix, Disney+

In Logistics: FedEx

In self-driving technology: Tesla, Uber, Ford

Next, we will analyze Amazon's BSC (BALANCED SCORECARD) model:

The “Financial” perspective entails looking at the metrics relevant to the valuation of the
company by its shareholders. These include items such as return on equity, return on assets,
and stock price. For Amazon, ROE declined from 1998 to 1999 and was not a meaningful
metric in 2000 because both the numerator (Net Income) and denominator (Shareholder's
Equity) were negative at the end of the year. 2000. Thus, DuPont's ROA (Return on Assets)
decomposition provides a meaningful measure. In particular, ROA (Profit Margin and Asset
Turnover Ratio) driving factors are highly volatile under GBF strategy and Customer
Obsession even if this cost strategy is implemented in 1999. However, these rates began to
stabilize after traditional cost constraints were imposed through old economic techniques such
as implementing the traditional master budget cycle at Amazon. Today, Amazon is facing an
extremely difficult financial situation for the supply chain due to the Covid-19 pandemic. The
coronavirus pandemic has not only killed more than 1 million people around the world. It also
wreaked havoc on the global economy, bringing industries to a complete standstill, prompting
mass layoffs and, in the case of retail, accelerating the slow demise of department store chains.
already sick. Amazon is one of the few exceptions. The e-commerce giant, with its seemingly
endless choices and efforts to offer convenience and low prices, has become the default
retailer and an essential service for many consumers in the world. peak coronavirus crisis
period. Faced with store closures and empty shelves, shoppers have first turned to Amazon to
buy products that protect them from Covid-19, like hand sanitizer, face masks and sanitizer.
They stock up on household products and groceries, then, as the crisis progresses, they order
office supplies and exercise equipment to adjust to staying indoors. From February to March,
sales of toilet paper on Amazon increased 186% from a year ago, while sales of cough and
cold medicines increased 862% year-over-year, according to the service provider.
CommerceIQ e-commerce. The flood of online orders helped Amazon hit record revenue in
the second quarter. It has since spent billions of dollars on coronavirus-related investments
such as worker safety equipment and its internal testing initiative, called Project Ultraviolet.
While the US navigates widespread unemployment and economic uncertainty, Amazon
continues to hire. The company brought on more than 175,000 new warehouse and delivery
workers from March to mid-April to be able to fill customer orders. Amazon added 36,400
people in the three months ended June 30, bringing the top number to 876,800, up 34% from
the same period last year. Amazon's pandemic-driven growth isn't expected to slow down
anytime soon, especially as it gears up for the Prime Day shopping spree in October and the
holidays that follow. In fact, Amazon is expected to surpass $100 billion in quarterly revenue
for the first time in Q4, according to analysts surveyed by FactSet. That would make it one of
the very few US companies to have ever crossed that threshold, along with Walmart and
Exxon. "The hardest time we've ever faced." It's not an obvious conclusion that Amazon will
thrive while many other companies are struggling. The surge in surprise orders initially caught
Amazon off guard. The company has struggled to meet its lauded two-day delivery deadline,
which it promises Prime members as part of their $119 annual membership fee. The company
quickly ran out of high-demand products like hand sanitizer and tissues, fought back against
rampant price gouging, and rushed to adjust operations inside its warehouses to keep
employees safe. do not slow down the progress of work. CEO Jeff Bezos acknowledged early
in the pandemic that the coronavirus had affected Amazon's operations. "The current crisis is
proving more resilient and resilient to Amazon's business than ever, but it's also the most
difficult time we've ever faced," he said in October. 4. Bezos says his time and attention has
been focused on Covid-19, away from longer-term projects and experimental ventures like his
rocket company Blue Origin. Bezos and many members of Amazon's senior leadership team
met daily to resolve inventory issues and discuss the latest coronavirus updates. Global
companies like Amazon are generally prepared for potential supply chain disruptions, but this
is not the case. Even Amazon, with its end-to-end logistics network spanning warehouses,
planes, trucks and vans, can't keep it running. Guru Hariharan, former Amazon executive and
CEO of CommerceIQ, said: “The first place where [coronavirus] was hit hard was their supply
chain. “Amazon's holy grail or crown jewel is the supply chain. It hasn't become normal yet. "
Amazon told millions of its third-party sellers that items like hand sanitizer and tissues will be
prioritized in their inventory, because these products are in such high demand. In April,
Amazon started taking orders for non-essentials, but only in limited quantities.

From a “customer” perspective: 23% of online shoppers first go to Amazon for inspiration
when they don't have a specific product to buy (Episerver, 2019). Understanding customer
journey maps helps Online brands and retailers develop their strategies accordingly. If online
retailers know that a large number of people go online for inspiration when they don't yet have
a specific product to buy, they have the potential to influence buyers. Marketplaces like
Amazon or Etsy remain a popular first point of contact for online shoppers without a product
to purchase. In addition, Google is also the top destination for shoppers to start making
purchases online. But the fact that shoppers tend to lean toward Amazon and Google when
doing online searches can frighten brands and retailers. But companies can work alongside
these trends to their advantage. It's important to highlight a product's price and features, but
brands shouldn't limit themselves to that. They should strive to inspire online shoppers to
purchase with information that may be of value to them. This may include custom messages
for shoppers. Companies can adopt content marketing methods that cater to a shopper's unique
state of mind based on how often they shop online. For example, companies can reach online
shoppers with unique promotions such as exclusive discount offers based on the shopper's
location. This is something that clothing brands regularly engage in to engage their customers
by providing them with weather-based sales of online shoppers.

But 2020 has been an incredible year for the Amazon supply chain. The pandemic has given
Amazon more market share and sales volume than the relentless e-commerce giants could
have dreamed of. (Continuously becoming the name Jeff Bezos originally wanted to call
Amazon.)

EMarketer estimates that Amazon increased its share of e-commerce sales to 38% in 2020, up
from 37.3% in 2019. 2020 was a year where Amazon's multi-year investment in the delivery
and shipping infrastructure really shines. While UPS, USPS and Fedex FDX + 0.1%
significantly reduced the supply in their delivery systems, Amazon continued. There are still
challenges - manufacturers have cited instances where Amazon won't retrieve Orders, there
are significant delays in receiving inventory at fulfillment centers, and Amazon even
periodically gives preference to sellers who are fulfilling their orders over using Amazon's
fulfillment system. But compared with the restrictions imposed by other major transportation
providers, Amazon's logistics system has stood up to the challenge of the online order boom in
2020. Brands and people Influencers can all go 'live' on Amazon with a simple app, sharing
makeup tips, recipe demonstrations, and street vendors. In 2019, in-person shopping
accounted for 9% of China's total e-commerce revenue. Amazon also has the opportunity to
further leverage the experimental AI-driven technologies it has built and acquired to create
virtual beauty counters, fashion dressing rooms, and virtual layouts of home furniture. family.
Amazon's experiments with these immersive, immersive experiences are an investment in the
future of shopping. We'll see more in-person shopping experiences and the ability to virtually
'try before you buy' a wider range of products before the end of 2021.

From an “internal business process” perspective: Amazon.com uses Business Process

Management (BPM) software to automate a number of key financial operations processes.
These involve different groups throughout the company and include the handling of
confidential financial data for the payment, payroll and accounting processes. Correctly
managed, automated, and executed these financial process applications help ensure that
companies maximize profits, reduce errors, and reduce compliance burdens. Few solutions to
overcome, Use BPM software to automate financial operations processes/tasks. BPM software
helps Amazon.com process a large number of invoices each day. Appian BPM Suite creates a
technology system that combines everything into a single application. Emphasize a positive
user experience. Next is the acquisition to improve- more complete the processes of the supply
chain. E-commerce group Amazon has quietly acquired Australia-based e-commerce platform
Selz, which allows businesses to build their own online stores. In the history of Amazon
acquisition, the first place was the acquisition of Whole Foods for $ 13.7 billion in 2017.
Today, MGM has been acquired for $ 8.45 billion, making it a purchase. second most
expensive in Amazon's history.

Finally, about “learning and growth.” For nearly 22 years, Amazon has transformed from one
field to another and achieved many achievements in each area. The Amazon Echo smart
speaker is a huge success after the failure of the Fire Phone. The latest version of Amazon's
music streaming service, Amazon Music Unlimited, builds on the company's original music
store, Amazon MP3, which opened nine years ago. Amazon Studio is an Emmy Award-
winning TV show, built on the crowdsourcing platform first introduced by the company in
2010. Even Amazon's fashion industry has flourished and the company is now an apparel
supplier. second largest in the US, according to Morgan Stanley. This is a development from
brand experimentation in outdoor furniture (2004), home appliances (2008), electronic
accessories (2009), diapers (2014) and now coffee products. Organic.

Unlike Apple, Google, and Microsoft, Amazon is not fixated on a tight design ecosystem of
apps and services. CEO Bezos, instead, focuses on platforms that serve customers as best and
as quickly as possible. “Our customers are loyal to us until the moment someone gives them a
better service. And I like that. That's a big motivator for us," Bezos said. That drive has led to
the creation of a series of amazingly innovative products. In the past year alone, Prime Video
has been available in more than 200 countries and territories following its November debut on
The Grand Tour, Amazon's most-watched premiere. Twitch, the online video game network
Amazon acquired in 2014, has announced the first three titles since the studio was founded.
Amazon has invested millions of dollars in startups to build voice-controlled apps for its smart
virtual assistant Alexa and teach it thousands of new skills. The company has opened twenty
new distribution centers, becoming the largest online store in India and having the first drone
deliveries in the UK.

Bezos' strategy of continuous growth allows the company to experiment with neighboring
areas and then build them into brands. The site that used to only sell books now allows anyone
to open a store and sell anything. The warehousing and logistics capabilities that Amazon
once built to organize, pack, and ship those books are now available to any seller. Amazon
Web Services, which grew out of the company's e-commerce infrastructure needs, is now a
separate $13 billion company that not only provides logistics for Airbnb and Netflix, but also
stores your entire library of Kindle e-books and makes it possible for Alexa to tell you if you
need to bring an umbrella today.

IV. Proposals and recommendations

1. Continuous Fulfillment

No longer can a distribution company just collect orders and fill them at the end of the day.
Online marketplaces are open around the clock and people often want overnight or next-day
delivery. That means a system has to be in place to process orders immediately, so the item
can be picked up from the warehouse and sent down the line right away.

EX: Amazon Prime Air

2. More Intensive Management

Naturally, more order fulfillment and faster distribution will require more management and
better inventory control. Distributors must hire competent management personnel, often using
state-of-the-art logistics software, to make sure the accelerated supply chain continues to
function effectively at all times.

3. Better Automation

Automation is already a critical part of most shipping supply chains. With faster, around-the-
clock deliveries, your automated processes need to be faster and more efficient. Suppliers
must invest in state-of-the-art machines and automation technology to keep up with demand.

4. Bigger Warehouses
Companies that find themselves having to search for or manufacture new product when it is
ordered are going to fall behind. Companies need to make sure they have big enough
warehouses or a large enough number of warehouses to contain as much inventory as they
need to make sure they will always be able to fulfill any order at any time.

Companies need to make sure they have big enough warehouses

5. Last-Mile Logistics

Getting a product that “last mile” — that bit of distance from the local receiving center to the
recipient on time — has always been a challenge, but it is one that Amazon seems to have
mastered. Today’s supply chain managers must find new and innovative ways to cross that
last mile.

Last mile in the distribution network

The term “Last mile” was originally used in the telecommunications sector but was later
applied to supply chain management. In the supply chain, the transportation of goods via rail
and sea is often the most popular, efficient and cost-effective mode of transportation.
However, when goods arrive at a train station or port in large quantities, they need to be
transported to its final destination.
And this last part of transportation is less efficient than many long distance journeys by rail or
sea. Normally, the last mile will account for 28% of the total cost of transporting goods for the
whole journey. The problem here is that the last mile also contains challenges of delivery or
transportation in urban areas, where retail stores, restaurants ... and it will lead to traffic jams
and lack of safety.
We often encounter the problem of Last mile in transporting goods to areas in need of
humanitarian aid. Relief may reach a center near the affected area but cannot be distributed to
each affected household due to the impeded infrastructure damage.
Retail companies like Amazon and Alibaba have been researching and deploying drones to
deliver goods purchased online to consumers. Amazon has also set up lockers in some malls
as a way to store and deliver items to customers. 

6. Reversing the Inventory and Logistics Dynamic

In the past, many companies have had a strategy of outsourcing logistics and insourcing
inventory. It means using their own in-house products but taking advantage of third parties all
along the supply chain to deliver them. Amazon does the opposite, offering many products
that sit in the warehouses of other parties, but managing their own extremely efficient logistics
system to get those products and get them to their locations.

Companies looking to compete in the online retail space will have to consider just how much
of this model they want to, and are able to, follow.
On-Time Delivery Rate

The On-Time Delivery Rate (OTDR) represents shipments delivered by their estimated
delivery date as a percentage of total tracked shipments. OTDR only applies to seller-fulfilled
orders.

We consider OTDR performance when determining which Transit Times you are eligible to
set, which may enable you to promise faster delivery times and improve your conversion.

We recommend that sellers maintain an OTDR greater than 97% in order to provide a good
customer experience, however there is no penalty for not meeting the performance target at
this time.

Note: Performance targets for Premium Shipping orders vary from the above. See Premium
Shipping and guaranteed delivery for more information.

Customers tell us that receiving their orders on time and having the ability to track their
packages are important factors in their overall satisfaction with an order. Our research shows
that tracked orders have 60 percent fewer order defects and that tracking also helps reduce
order inquiries from buyers.

The importance of on-time delivery

If you meet Amazon's targets for On-Time Delivery and Valid Tracking Rate, you may be
eligible to offer reduced shipping or handling times on your products. To learn more, see
Modify handling time.

Late or missed on-time delivery

This metric is intended to help you understand the cause of negative feedback and claims.
When packages arrive late or are shipped without tracking, buyers are more likely to leave
negative feedback or file claims. This directly impacts your performance metrics. Therefore, it
is important to review your on-time delivery and tracking-usage rates regularly.

Failure to meet Amazon's target for this metric generally does not result in the suspension of
your selling account. However it could cause negative feedback or claims, which could impact
your selling account status. To help you monitor your on-time delivery metrics, we have
added a performance indicator to the Account Health.

On-time delivery rate calculation

A package is considered on time if the following requirements are met:

Tracking information is recorded within 48 hours of entering the shipment confirmation.

The package is delivered by the estimated delivery date according to the carrier's tracking
updates.

To calculate the percentage of packages delivered on time, we divide the number of tracked
packages that were delivered on time, as confirmed by the carrier, by the number of packages
that have valid tracking information. Your on-time delivery rate typically reflects your
shipping performance data as of two weeks prior to the date you view the rate. This allows
carriers time to update delivery confirmation data in their databases.

If a package is confirmed as shipped after the estimated delivery date, the package is not
considered to be delivered on time.

Relationship between number of packages and on-time delivery rate

The number in parentheses next to your on-time delivery rate is the total number of packages
buyers received on time. It is used to calculate the on-time delivery rate.

Apply cost-based system

Buying from World-Class Suppliers.

 Concentrate on closer relationships with smaller core group of exceedingly capable

suppliers
 Fewer quality and delivery problems
 Access to leading-edge technologies
 Opportunities to collaborate
 Lower total product cost

Use of Full-Service Suppliers.

 Remaining suppliers are often larger in size

 Offer broad range of value-adding services
 Provides greater access to supplier’s engineering, R&D, design, testing, production,
service, and tooling capabilities
  Allows outsourcing of integrated items
 Lower Administrative Costs
 Greater information sharing
 Formalized communication processes
 Fewer problem-related interactions with suppliers
 Joint problem-solving

V. CONCLUSIONS AND RECOMMENDATIONS.

When it comes to its supply chain, Amazon is a company that continues to innovate for speed,
efficiency, and success. You can learn from this and apply it to your own supply chain
strategy. In particular, through the way they operate and manage Amazon's supply chain, it
can be seen how Amazon has an advantage by selling everything online so that they don't have
to bear the costs of maintaining a store. Besides, Amazon effectively controls costs and
reduces inventory replenishment time, the Company has established many strategic alliances
with many companies. So it has a strong value chain system that also helps to maintain a low-
cost structure. Meanwhile, in Vietnam, large e-commerce sites like Tiki, Shopee, and Lazada
have not been able to overcome this problem because the model mainly serves domestic
customers, so the supply chain on a small scale is still a limited regime. Because the supply
chain model is not common, consumers may have to pay a large delivery fee.
Amazon is a great example to look at in terms of increasing productivity, expanding reach,
and building profits. If you want to focus on managing your own supply chain, make sure you
simplify processes, outsource non-strategic tasks, and automate your operations when
possible.

 VI. REFERENCES.

https://vi.wikipedia.org/wiki/Amazon_(c%C3%B4ng_ty)#:~:text=Amazon%20l%C3%A0%20c
%C3%B4ng%20ty%20Internet,1994%2C%20t%E1%BA%A1i%20Bellevue%2C
%20Washington.

https://resources.base.vn/productivity/bsc-balanced-scorecard-la-gi-ap-dung-ntn-de-mang-lai-
loi-ich-364

https://www.forbes.com/sites/amazonwebservices/2021/06/28/show-your-customer-obsession-
with-these-4-rules-of-personalization/?sh=f8b595240d08

https://www.cnbc.com/2020/09/29/how-amazon-managed-the-coronavirus-crisis-and-came-out-
stronger.html

- http://eurorack.vn/vn/chuoi-cung-ung-la-gi.html

-
https://www.researchgate.net/publication/341738786_The_Supply_Chain_and_L
ogistics_of_Vietnam_in_the_Context_of_International_Economic_Integration

- https://vilas.edu.vn/the-scor-model-4-tru-cot-tao-nen-chuoi-cung-ung.html

- https://www.mindtools.com/pages/article/newTMC_05.htm
- http://vnll.com.vn/vi/e-logistics-thuong-mai-dien-tu/