This week we examine two companies with different transportation strategies critical to their business model. Amazon.com and Wish.com are two internet-based retailers. Amazon uses a transportation strategy of charging more but the order can be delivered in as little as a day. Sometimes even the same day. Wish charges a much lower price but shipping takes between 2-6 weeks for a product.
Amazonâ€™s strategy is to keep items in stock and use fast shipping methods to get the consumer what they want as soon as possible. This strategy has worked over brick and mortar stores since prices are lower than traditional competition. However, in 2012, Wish.com, a direct-from-China shopping application, launched with prices less than half those of Amazon. The catch was no inventory. Every item had to be shipped from China taking 2-6 weeks to fulfill the customerâ€™s order.
Part 1: Review the websites of Amazon.com and Wish.com and become familiar with their transportation/delivery methods. Then check the reviews on the companies. Which do you think is a better model and why?
Part 2: The goal of inventory policies and practices is to ensure the firm has the right inventory in stock when needed at the lowest cost possible. Examine the inventory policies and practices of both Amazon and Wish.com. Do you think they are effective and why? Are there areas that need improvement?
Write around 300 words