Distribution Strategy: Case Study: Abhishek Tuli Ajay Kaushik Ankit Karir Ankit Garg Md. Salman
Distribution Strategy: Case Study: Abhishek Tuli Ajay Kaushik Ankit Karir Ankit Garg Md. Salman
com’s European
Distribution Strategy : Case
Study
ABHISHEK TULI
AJAY KAUSHIK
ANKIT KARIR
ANKIT GARG
MD. SALMAN
Facts
Amazon in Europe
• Challenge in Europe
• Assessing the EDN opportunity
• Impact of the implementation oft the EDN
• Hope on EDN
• Design the EDN
What distribution strategy would you recommend to Amazon in Europe? Explain
the alternatives evaluated & justify your recommendation.
Dependent in part on the functions of the DCs in the EDN, with three approaches..
Continuing with its current strategy of holding inventory in all three DCs.
Selectively sharing inventory among European sites
Three DC’s inventories physically mixed, based on demand patterns and inventory
and transportation costs.
Challenge in Europe
Did Amazon need three independent distribution centers in UK, Germany and France or
build a European Distribution Network (EDN)?
Assessing the EDN opportunity
Amazon Europe should consider third choice i.e. the Amazon Europe’s operations should
be integrated fully, with three sites’ inventories physically mixed, based on demand
patterns and inventory and transport cost.
Once implemented this design would prove very cost effective although it requires
analysis of demand patterns, cost, transportation options, IT requirements.
It’s necessary to reduce the gap between split orders and the cost associated in fulfilling
them.
Recommendations