European distribution

strategies
By

Amar
Surya
Abhi
Bhadra

AMAZON IN UNITED STATES

1. Speed, simplicity and enjoyment for the customer were the initial drivers
2. In the first three years of companys existence the distribution centres capacity is extended
3. The major focus for Amazon in the US market was to optimize its network operations
4. One of the key factors to their success is their ability to adapt structurally to changing demands of the
market.

AMAZONS EUROPE STRATEGY AND OBJECTIVES

1. In 2003, It wanted to Reconstruct its distribution network in order to meet growing demands.
2. Adapt its business structure and positioning in the market.
3. It wanted to catch up with its US operations by 2007.
4. Key measures are expanding product offerings, realize new market place activites, introduce Amazon in additional
European markets.
5. Achieving a level of centralization where it can focus on its operations, the key is to balance between utilizing synergies
for efficiencies and keeping sufficient flexibility.

EDN
Adopt Centralized Operations Management
Implement European Distribution Network (EDN)
Centralize management office in the United Kingdom where most operations take
place.
Use strategic order fulfillment to minimize lead time
Use strategic inventory distribution to reduce cost

EDN
Create Cross-Docking enabled warehouses
Preferably in Southern Europe where Amazon faces higher demand
Amazons Infrastructure is already established for communication between the DCs
Using the existing DC would be more cost efficient

RECOMMENDATIONS
Leverage some Amazon.com techniques
Drop shipping: May increase price but customer service level will remain high
Pick profiles: Multi item orders may need to be fulfilled by more than one location

RECOMMENDATIONS
Manage Shipping Costs
Continue free shipping for local products, extending the use of Postal Injection for some
high demand products
Full truck loads from DCs to major cities
Reduce postal service charges, maintain low shipping cost and offer free shipping in some
new places

CONCLUSION
Amazon Europe must keep its current three distribution centers but share their inventory
data.
Allow automatic web transfer of order to optimal distribution center.
Amazon should launch new marketplace activities tailored for European markets
Amazon Europe should strengthen their relationships with publishers and distributors as it
expand its product lines.

THANK
YOU