Very informative lectures. One question Sir, where does the Amazon fit in your example ? I think by sending packages over night they follow Responsive strategy but at the same time their cost is competitive as well. Where can I find Amazon business on your Strategic fit chart ?
Amazon is a good example of evolving supply chain, however you cannot place it in a single zone as it has a diverse strategy driven by customer sensitivity and needs. I would say it is on the path of becoming an efficient supply chain for customers that are price sensitive i.e. want products at a lower cost and can wait for delivery. At the same time, for customers who want fast delivery it is a responsive supply chain.
@@himanshuchopra8877 Your answer is wrong. Because amazon is the not the platform which decide the price of the product its seller who decide the price of the item . Amazon courier charges are fixed and comission
Responsive supply chains command a higher cost of service. So it has to deliver a higher value to customer, therefore you need to maintain higher stocks in order to respond to customer needs quickly. A person who is ready to pay a premium (higher) price will not like to wait for the item. In order to ensure customer need is fulfilled in quick time and every time a need arises it is imperative that the supply chain maintains buffer.
