Supply Chain Management (SCM) Strategies: For the huge success by 2004 the “Supp

Question

Supply Chain Management (SCM) Strategies: For the huge success by 2004 the “Supply Chain System” played a huge role. In 2000 Amazon spent good amount in order to build automated warehouse and automated supply chain management. All the supply chain activities are controlled by CRM system. a) Enterprise Resource

Management (ERP System): Amazon uses oracle as the ERP. It has huge database which hold information related to customer. Customer s ordering process is automated as the order is taken as it automatically find the nearest distributing center for the delivery. This system fastens the order fulfillment process with the order tracking and reduces any distribution mistakes. By this system the company reduced 50% of its customer service contacts since 1999 because of fewer mistakes.

Customer Relation Management (CRM) : In order to gain customer satisfaction and loyalty Amazon use Customer Relationship Management system (CRM). CRM system follows the following application to collect information of the customer. All personal information of customers their credit card record, transaction record, order record, profile, their past purchase history are collected in the database. The order processing system takes care of the transaction record with secured transaction method and it delivers instruction to the delivery system for the execution of shipment. Through customer feedback, customer interest, wish list, product reviews web page system collect customer information.

Amazon has extensive implementation of customer relationship management. Each and every customer is taken in account in Amazon.com. i.

Customer Selection: Customer selection part through Amazon.com website has given Amazon a extra benefit in order to boost their business. Amazon uses numerous methods to select customer by knowing their customer behavior

Customer Acquisition:

a) Customer account: Every customer buying through Amazon.com has his/her profile in Amazon website. Amazon.com creates a database to store the account, information of the customer, credit/debit account. Through the customer account Amazon knows about the customer, their personality and last of all can satisfy them.

b) Wish List, review system : Amazon always encourage customer to add favorite items to the wish list. This helps Amazon to know better about the customer. Product review by customer not only be help customers to find and select product but also acts as direct marketing event for Amazon.com. Amazon allows making connection in between the customer, communicating and viewing their interest help to Amazon to gain customer trust and initiate world of mouth. In the first 3 month of 2000, Amazon acquired 3 million new customers without any investment. To satisfy customer Amazon uses information acquired through customer account, wish list etc. Amazon brought number of system to satisfy customer. 1-click ordering has been an excellent system innovated by Amazon which revenue less than 20 sec to enable purchase

Customer Retention: Amazon.com emphasizes customer retention over just acquisition. An analysis shows 40% of Amazon s customers are frequent users. This indicates customer always come back to purchase product in Amazon.com

Customer Extension: The market place is very competitive even for Amazon.com with competitor like e-Bay, best buy breathing very behind Amazon. Customers now days get every single distraction through other competitor s service and brand value. It is very challenging to every retain customers. But even though Amazon s better customer service, trust factor, brand value initiate them rapid and growing customer popularity. About 70% of Amazon s customer trust Amazon and recommend Amazon to their friend

Explanation / Answer

Explain how the integration of CRM, SCM, and e-ERP systems in amazon?

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