solution

Amazon uses VMI so it doesn’t need to manually place purchase orders when stock runs low, as it has millions of SKUs to manage. This method of inventory management allows suppliers to take care of their own products within a retailer or e-tailer’s inventory. Over half of the products listed on Amazon are sold by third party sellers. Third party vendors send their inventory to Amazon’s warehouses and the company takes care of the rest. From picking and packing, processing customer payments, to sending it off for shipping – this fulfillment strategy has benefits for all parties. Amazon simply provides the channel for vendors to sell their products.

How does Amazons’ adoption of VMI when merged with other Inventory Management practices and technology create competitive advantage? Give multiple examples. 400 words

It is suggested that VMI has a benefit of creating closer business partnerships. What benefits does this generate? 300 words