1.) What is Amazon's IT solution?

The IT Solution Amazon needed to develop a method to increase its control over the delivery of its products. One common strategy to increase efficiencies and control is to reduce the number of steps in a system. Significantly, Amazon adopted the opposite approach, adding more sorting centers to its distribution channel. Sorting centers sort pre-packaged orders by zip code. This process enables Amazon to control delivery along the entire route to the local post office for Sunday delivery (in select mar- kets). In certain markets where Amazon owns a delivery system, the company can now maintain control all the way to the customer's door. Adding a step in the distribution system required Amazon to up- date its proprietary information system. Previously, once the system had slammed a delivery sticker onto a package, Amazon was basi- cally out of the delivery loop. The retailer might maintain tracking (if offered by the delivery company), but it was not in control of the deliv- ery. After adding the new step, the fulfillment center would maintain 338 CHAPTER 11 Customer Relationship Management and Su planning information, as well as construction of 1,800 distribution centers and 97,000 delivery stations in more than 600 cities across 31 Chinese provinces. Amazon and Alibaba have made significant investments in their supply chain capabilities and they will soon handle more shipments than most specialist delivery postal and courier companies. For exam- ple, Amazon shipped i billion parcels of its own goods in 2016. The company is forecast to handle a greater volume than FedEx by 2019. the one that provides the best shipping option. Amazon's website and apps offer a simple, consistent, and reliable user experience. Prod- uct information, prices, customer reviews, related products, recom- mended products, shipping information, and more appear in the same location on the page. Amazon's analytics systems use a customer's or- der and search history to create customized experiences for that cus- tomer, and Amazon's order fulfilment process delivers products swiftly and accurately. Supply chain management is critical to Amazon's success. In 1995, Amazon began with two fulfilment centers. The company has Closing Case 937 the package, and the system would direct the pre-packaged order to the appropriate sorting center. When packages arrived at the contor, the information system would sort them by zip code. They were then delivered to the local post office or to another carrier for the last milo" of delivery. In select cities, Amazon maintains its own delivery service. In other cities, the company has contracted with the U.S. Postal Service (USPS) to deliver on Sundays