Operational Function and Importance of AI for Amazon Australia

Running Head: E-Business 0
E-
Business
September 23
2019

E-Business 1
Table of Contents
Introduction......................................................................................................................................2
Operational Function of Amazon Australia.....................................................................................3
Delivery Preference.....................................................................................................................3
Push/Pull Strategy........................................................................................................................3
Classes and Zone.........................................................................................................................4
Automation..................................................................................................................................4
Supply chain cost.........................................................................................................................4
Manufacturing..............................................................................................................................4
Importance of AI for Amazon Australia..........................................................................................4
Use of Artificial Intelligence...........................................................................................................5
Review on Amazon Australia..........................................................................................................6
Recommendation.............................................................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

E-Business 2
Introduction
This report is based upon E-business which is also known as an online business where the
business process is conducted through internet. In E-business selling of good, purchasing,
supplies, services, payment processing, production control, and management, etc. are included.
The main aim of the report is understanding the function of E-business by selecting an E-
commerce company. In this report Amazon Australia is selected for understanding the functions
and importance of E-business included with the general introduction of Amazon Australia. The
report is also prepared to explain about artificial intelligence. There are various applications are
introduced by the artificial intelligence which is developed to support the business process of an
E-commerce company in which chat support, customer relationship, improvement in sales,
decision making cybersecurity, management of inventory, customer data handling are included.
The importance of Artificial intelligence in the development of E-business will be also explained
in the report. The role of Artificial intelligence for the support in expanding the business of
Amazon Australia will be explained in the report. In order to develop and make changes in the
business process recommendation will be explained in the report for the chosen company.
Operational Function of Amazon Australia
Amazon Australia was launched in November 2017 and it comes under the Oceania region
categorized by Amazon. It is expected that the company will be able to consume $12 billion
from the Australian retail market. Rather on focusing competitors company is mainly focused on
the customer obsession, excellence in operation, longer-term thinking and passion for the
invention. Since March 2017 Amazon Australia reported for the building the logistics centers as
well as distribution capacity in Australia (Smith, and Friedman, 2019). In the entire operation of
Amazon Australia business the prime subscription plays critical role in where customer has to
spend more money which provides them a platform or an identity of being loyal towards
company and their services. The supply chain management of Amazon Australia which is quick
and efficient is crucial reason to become the favorite platform for customers. The commitment
of One day, two-day delivery and One-hour delivery strategy for delivering products attract the
customer for choosing the services. The company is using very sophisticated information
technology for controlling the network of warehouses (Tou, Watanabe, Moriya, Vurpillat, and

E-Business 3
Neittaanmäki, 2019). It helps the company for the inventory management and transportation
system due to which the supply chain of the Amazon is most efficient among other companies.
The supply chain completely depends upon outsourcing in the management of inventory when
the product. When the product is not purchased or not stored in the fulfillment center is major
challenge and the company is maintaining its 82% of the total sale from a third-party seller (Tan,
Pan, and Zuo, 2019).
Delivery Preference: Amazon has its own logistic service due to which the company is
providing the commitment of same-day delivery or one-hour delivery. Due to dynamic supply
chain management Amazon Australia is able to provide preferences in delivery options. In
Australia because of the traditional competitors compared to other subsidiaries facing challenge
but the company is making continuous efforts so that the order get deliver faster and can attract
the customer with achieving their trust (Sipior, Lombardi, and Gabryelczyk, 2019).
Push/Pull Strategy: The warehouse of the Amazon Australia is established in which proper
strategies were followed i.e. moving closer to the metropolitan area (Bakhtiari, 2019). In this
push, the strategy is used to store the product the in warehouse while if the product is related to
third-party seller then by the pull strategy is used for selling the product.
Classes and Zone: Amazon has divided its warehouses is categorized into five different
storage areas. The prime storage is used to keep the magazines and books; the other section of
prime pallet is used for storing the product which is in high demand. In the third level of prime
storage stores products which are in high demand but in less than case quantities. In the next
section products which are less in demand stored, in the last section the modern demand and
small items are stored.
Automation: For controlling and managing the inventory Amazon implemented Automation
which reduces time and costs of the company. Instead of having large facilities Amazon
Australia is capable to deliver the order faster and efficient with the help of Automation.
Supply chain cost: Amazon has maintained the overall per unit supply cost at a minimum level
which is difficult for the traditional companies already conducting their business in Australia
(Tou, Watanabe, Moriya, Naveed, Vurpillat, and Neittaanmäki, 2019).