Supply Chain Integration of Amazon Assignment Help
How do sales and operations planning in supply chain integration impact the company overall? What would Amazon''s medium- and long-term forecast inform the operations management department?
How do logistics, transportation modes, and warehouse locations impact Amazon''s competitiveness?
How does global sourcing and procurement impact the overall effectiveness of the supply chain? What are the benefits and challenges that have occurred when outsourcing logistic and other functions?
How has Amazon successfully leveraged e-commerce strategies to promote supply chain integration and boost sales and growth for the organization? Which strategies have been particularly effective and why?
Do you feel that Amazon sets an example for other companies to model regarding supply chain integration? Be sure to explain your rationale. Consider the ethical implications in your respons.
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Introduction
Supply chain is being considered as one of the essential department of an organisation. For a company like Amazon that runs as an e-commerce retail giant, it is essential to ensure that the company is able to follow the features and benchmarks to assure them of the pinnacle of success. The discussion provided below intends to focus on the supply chain of the company and understand its appropriate mechanisms.
Overview of Amazon
In the contemporary business environment, Amazon has been considered as the world leader. It's founder Jeff Bezos is the world's richest man alive. Amazon.com started in the year of 1994, when it was pretty much unknown to everyone that an Internet company would possess an incremental amount of potential to grow. Amazon was the first online store. Amazon started adding new items to their portal since 1999 to stay ahead of every business. It continues to be the most sought after and the best shopping destination on Internet for everyone.
Effect on Supply Chain
A consumer always expects front-end experience from an organisation, which it will not be able to provide without a back-end framework that is strong. The centre for supply chain (RILA) or The Retail Industry Leaders Association has been investigated by 24 store network administrators. A framework can only be considered strong and effective, when it has the potential to provide a better stocked and appropriation of their services to provide to the clients, this eventually projects the interest in terms of production of the product and the cautions that are required to be considered (Berthiaume, 2016). About 67% have considered that offering the option of store pick-up is a customer satisfaction technique, however, it has also been found that about 61% also consider that most of e-commerce companies confuses with the requests or the orders that have been initiated by the clients (Berthiaume, 2016).
Amazon is well known to the world because it has managed to achieve both competitive and technological advancement in terms of their products and services and in the case of their supply chain as well. It has been identified that in the case of supply and demand, the sales and operations have an equal amount of effect in the supply chain with the help of the communication structure that is being followed.
Forecasting
The forecasting pattern of long-term and medium allows the company to understand the past and present trends that have been constantly occurring. They also have enough tools and techniques to understand and predict new trends. They make proper use of the time series analysis. Long-term forecasting occurs for situations of more than 2 years, medium forecasting is for the time between 3 months to 2 years and the short term forecasting is for anything less than 3 months (Jacobs & Chase, 2014). The medium forecasts allow the company to understand the demand and ensure strategic planning accordingly, also permitting to understand seasonal effects with the help of long-term forecasts (Jacobs & Chase, 2014).
Logistics, Transportation and Warehousing
It has always been considered that the success of Amazon has been derived from its modes of transportation, warehouse locations and logistics. Amazon has been considered as the biggest competitor of other retail chains mainly due to the fact that the company provides the option of door-step delivery, that was initially missing in almost every retail organisation. Amazon is known to have invested in their logistics process as much as possible and it is clear with the inclusion of innovative drones, global fleet of ships, international freight and many others (Schreiber, 2016). Amazon is best known for their prime delivery option, i.e., providing free delivery to prime subscribers.
For orders that say, one-day delivery or 2-days delivery, the warehouse plays a major role. Amazon has about 50 warehouses in US that employs about 40,000 people to ensure that some of the products can be delivered within a day (Hullinger, 2015).
Procurement and Global Sourcing
The elements of global sourcing and procurement are one of the essential elements of the company's supply chain model. There is a contract between the vendors and the company to be able to sell the products globally. Completely based on performance, delivery, price and compliance guidelines there are a series of guidelines with metrics of the procurement process that is required to be followed by the supplier (Jacobs & Chase, 2014). The e-procurement platform of the company that permits B2B business is extremely popular (O'Connor, 2015). Fast delivery and special pricing strategy are included in terms of bulk purchases. Eventually, this eliminates the inclusion of a middleman between the vendors and the company.
Resourcing
Amazon has always been working on to minimise the level of obstacles they incur and increase the advantages of outsourcing their own logistics. Earlier, Amazon used to rely on the logistics of the third party vendors. In the present scenario, the company has created their own logistics to reduce costing and to avoid being dependent on external providers (Schreiber, 2016). Amazon has not only benefited from supplying their own logistics but have also managed to provide employment to many. With the help of their technological strategy they have managed to reduce their cost and acts as a competitor to many third house vendors(Schreiber, 2016).
E-com Strategies
The e-commerce strategies that has boosted the sales and operations of the company over the years include: generating feedbacks after every user experience, smooth functioning of webpage, experienced testing, and generating recommendation from the users (Say, 2013).
They also managed to provide personalized shopping experience to the people. The more convenience that is being provided by the companies, the more they are inclined to generate customer satisfaction. Eventually, their strategy of Prime membership has event allowed them to generate better customer satisfaction for providing speedy deliveries and other offers.
Supply Chain
Through their years in the e-commerce industry, Amazon has managed to improve their services constantly and have initiated the inclusion of new patterns and provisions in their supply chain model. Their supply chain models have a mapped out-process that provides the customers with appropriate details of their purchases. The mechanism of the company allows them to provide satisfactory services to customers and at the same time act as the biggest competitor to the retailers. The company has more than 50,000 employees in America to keep up with the supply and demand in an estimated time (Hullinger, 2015). They also have a flexible return policy, which is only possible to achieve with the help of an effective supply chain. Other options that are available for the customers include speaking to customer executives, to be able to cancel order before shipping and track their deliveries.
Conclusion
From the discussion conducted, it can be concluded by saying that customers are always attracted to make purchases from Amazon because they have constantly setting bars for proclaimed results that could be generated by constant testing. Amazon is always looking for ways that would allow them to improve the shopping experience of the customers. It is eventually difficult for the companies to keep up with the strategies and popularity of Amazon.
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