Two Fatal Flaws of Amazon: Hint – Both are In Its Supply Chain – PART 1

If you asked an Uber driver in Sydney today what is the greatest strength of Amazon – they will probably tell you that it is their supply chain.

If you probed further and asked again – where exactly in the supply chain is the strength?

More often than not, you would get the common answer that it is Amazon’s network of warehouses from which it can seemingly instantly fulfil orders at the lowest possible costs.

More astute observers might also identify Amazon’s unique and un-ending focus on customer service – calling it a demand-driven supply chain. Supposedly, that is the bane of the traditional retail – with brick-and-mortar store being closed left, right and centre.

Conventional wisdom agrees that this analysis is right on both counts. These are the things that allowed Amazon to be immensely successful and become the slayer of the large box retailers everybody loved to hate.

So then what is there to be churlish about?

How could either, or worse, both of these big strengths suddenly turn into weaknesses?

Under what circumstances would they become a millstone around Amazon’s neck?

These are important questions – especially because those circumstances are almost gurantee to eventuate in a not too distant future.

But, is this the right time to answer these questions, or to merely ask the questions.

I am not going to answer these super important questions in this blog – because the purpose of this blog post was just to anchor this thought, not the reason for it.

Before that time comes, I will certainly come back and write a PART 2 of this blog, revealing my reasons for saying so – with evidence and case examples.

Meanwhile, a press release of this material is being issued so the date and content stays on record.

Those who live by the sword, die by the sword.

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Vivek Sood

I write about "The Supply Chain CEOs", "The 5-STAR Business Networks", and, how to "Unchain Your Corporation". In my work, I help create extraordinary corporate results using several 'unique' supply chain methodologies. Contact me for interesting, high impact projects, or, to get access to my IP for creating transformations using these methodologies.