- What is the advantage of centralizing operations; for example, having a large centrally-located distribution center (DC) instead of a number of smaller DCs? What are the disadvantages of the centralized approach? Why did Amazon opt for a more decentralized approach in Europe compared to the US?
- What functions/operations should Amazon centralize in Europe and what functions should be decentralized? Why?
- In the US, most books are purchased from wholesalers/distributors, while in Europe Amazon buys more books directly from publishers. What value do wholesalers add to a supply chain? Why might Amazon’s European supply chain be less efficient than its US supply chain due to the lack of wholesalers/distributors?
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Amazon’s Europe” Case Question
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