European Distribution Strategy

Presented By:
v Prashant
v Shashank
v Abhishekha
r
v Jyoti
v Komal
v Mohit
v Tripti
v Divya
v
 Amazon- Earth’s Biggest Bookstore

q
qFounded by Jeff Bezos in July 1995 with a
mission-“Use the internet to transform book buying into
the fastest, easiest and most enjoyable shopping
experience possible.”

qIts Procurement Strategy- Hold modest inventories and

rely on wholesalers.

qIn 1998, Amazon expanded its product lines launching

its Music stores, Video and DVD stores.

qTo remain the E-Tailing leader, Amazon decided to

pursue a “Get Big Fast” strategy.
 Good Practices:

qUse of SIX Sigma DMAIC reviews as a tool to reduce

variation and defects.
q
qAvailable to Promise Functionality.
q
qDrop shipment order.
q
qPostal injection.
Amazon.com’s Entry in Europe (1998)
 Challenges in Europe:

qWebsites & customer centers were unique to each

country.
qAddress Selling regulations in each country.
Offered locally preferred alternatives for payment
options.
qCould not follow US procurement strategy in
Germany & France.
qEDI penetration was low among book, music & video
distributors in Europe.
qThe mail service companies did not offer reliable
cross border logistics service on a pan-European basis.
 Issues in The EDN Opportunity:

qDefining of Implementation plan.

qConsider the impact of implementation of EDN on

internal departments.

qLeverage EDN volume to implement postal injection.

qCentralization of purchases by procurement

department.

qBetter coordination among departments and a clear

HR plan.
 Recommendations:

This way we can decrease inventory and transportation costs, and tailoring our dis
nventory management and as a single supply chain(similar operation processes).
ocation and lead time pooling without increasing distance between customer and supplier an
THANK YOU