Amazon.Com in China - Brief Analysis on Its Supply Chain Management Strategy & Proposed Recommendations

4373 Words Apr 8th, 2013 18 Pages
Chen Nanyou
Du Huanhuan
Gao Yilei
Guo Jing
Hong Jingqing
Ker Qian Yin
National University of Singapore

Part 1: Introduction to Amazon China’s Background and its Supply Chain
Amazon was founded by Jeff Bezos in 1995, started as an online bookstore with a vision to become the Earth’s biggest bookstore. It was soon diversified into selling DVDs, software, video games, electronics, and etc while the company’s positioning changed to the Internet’s No.1 retailer. In 2001, Amazon set a new goal as the Earth’s most customer centric company. Ever since, building up a customer-centered service business enterprise is the development direction of Amazon. Soon after gaining a firm footing in Europe, Amazon eyed on China as its next
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Because of the enormous size of China, Liu Qiangdong, CEO of Jingdong Mall said that to establish a relatively complete set of warehousing and logistics system in China requires around 20 to 30 billion yuan and it will take years to implement. Thus, it is until recent years that some of the B2C e-commerce leaders started to build to their own supply chain system such as Jingdong Mall ( and
Jingdong Mall started as an online magneto-optical store back in 2004. Until today, it has more than 25 million registered customers, 300,000 daily order processing and 50 million daily page views. In order to improve its supply chain management, Jingdong has been adding three to four new cities a week into its delivery network. Lately, Jingdong is planning to invest more than 100 million USD to build a massive new DC in Shanghai, this new DC is said to be 8 times larger than the “Bird’s Nest” stadium with 1000 powerful team to strengthen the company’s information system structure for supply chain management. is another big online retail store in China, well known as “Amazon of China” in the past. Dangdang is now selling over 1 million kinds of products across a few dozens of categories, among which consists of more than 600 thousand kinds of books and 500 thousand kinds of commodity products which made up to around 90% of all the

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