Amazon.com Inc. is a good example of a company that prioritizes the target consumer as a part of their supply chain management. Amazon.com is an online based retail company that provides online purchasing and on time delivery facilities to all the consumers while prioritizing the consumer choice and behavior for supply chain selection. Amazon.com sales various products including home equipments, electronics, electrical, garments, cosmetics as per the consumer selection and purchasing decision. Prioritization of consumer choice during supply chain management by making target consumer as part of the SCM system is the base of this retail business (Monczka e al., 2015).
Involving supply chain can open up an innovative way of business where the organization can control their potential sales margin to some extent. In this innovative strategy, the supply chain design is made by analyzing the consumer trends and purchasing behavior through incorporating information technology in the business procedure. Consumer needs and expectation defines the selection of inbound material, and supply chain design of the logistic operation system (Mascarenhas, Kesavan & Bernacchi, 2004). Prioritizing the purchasing choice of target consumer is also depends on the segmentation strategy. The placement of the supply chain nodes can be also designed according the target consumer geographical distribution and density.
Information Technology allow the organization to collect the data regarding the consumer details, their purchasing behavior, choice, potential purchasing capacity, premium paid, cultural influences and others. Amazon.com and other similar organizations utilize online consumer form before consumer login to collect the detailed information of the consumer through the process of ‘Sign Up’. Through analyzing the customer’s favorite list, visited product pages the company can generate related data in their Database System. During selection of supplied products and development of supply chain management the choice, consumer behavior, purchasing power are prioritized to get maximum benefit in further sales (Osarenkhoe, 2008)
Mascarenhas, O. A., Kesavan, R., & Bernacchi, M. (2004). Customer value-chain involvement for co-creating customer delight. The Journal of Consumer Marketing, 21(7), 486–496.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.
Osarenkhoe, A. (2008). What characterises the culture of a market-oriented organisation applying a customer-intimacy philosophy? Journal of Database Marketing & Customer Strategy Management, 15(3), 169–190.