Importance of Logistics and Customer Engagement in the Success of Amazon

The report discusses the importance of logistics and customer engagement in the success of Amazon. It highlights the strategies used by Amazon and the benefits of customer engagement. The report also provides recommendations for improvement.

ORGANISATIONAL
BEHAVIOUR

Executive Summary
The report will discuss two topics of customer engagement and logistics in the
organization and will highlight the impact of these two on the amazon success in the future. The
report will also highlight the benefits of these two through using theories and examples. Lastly, it
will provide the finding and suggestion for the improvement in the future.

TABLE OF CONTENTS
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................5
MAIN BODY...................................................................................................................................5
Gxo logistics Amazon .................................................................................................................5
Customer engagement on amazon...............................................................................................6
Primary Research.........................................................................................................................7
Recommendations......................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Organisational Behaviour refers to the study that helps the business to understand how
certain groups of people interact with each other in best of manner at the workplace. Further, the
present report is based on Amazon that is well-known in the online retail business all over the
world. Moreover, study will highlight the two most important topic of logistics and customer
engagement and will develop the understanding on how these are carried within the workplace.
Also, the study will explain both of these topics through using various theories along with
justification. Lastly, the finding from the overall research along with suggestion for improvement
will also be covered under this report in detail.
MAIN BODY
Gxo logistics Amazon
It can be said that for the strong e-commerce growth in that target market there need to be
proper supply chain management. Moreover, in context of amazon that is operating in large scale
it is very important that there is proper logistics management. Also, currently for ensuring timely
and right amount of goods to the customers on various specific locations' amazon is taking the
help of GXO that with help of technology and using innovative techniques is able to make the
inventory management and various other things of the company easier. Moreover, GXO is third
party warehouse operator and is benefiting from large scale operations and specialized in
providing various high tech solutions to the company (Led by our values, 2022). Furthermore,
the efficiency of amazon major reason is best supply chain management due to which it is able to
deliver large variety of goods in faster and smarter manner that have further saved lot of cost of
the company.
Also, having good supply chain is important as it helps in the developing stronger cash
flow through reducing various inventory and overhead cost thus maximizing profits for the firm
in long run (Nacife and et.al., 2021). Furthermore, Amazon is more concentrated towards
keeping up with demand in the market and ensuring maximum customer satisfaction. Hence,
through help of Gxo logistics it is able to accomplish its certain goals on timely manner.
Furthermore, working of the amazon and Gxo logistics together for efficient flow of goods might
be linked to the total quality management theory that states that all the raw materials that are
supplied must be based on the appropriate standards so that best customer satisfaction might be
provided and positive work culture might be maintained for greater innovation.

Moreover, through following the total quality management approach the firm is able to
enhance the market image and ensure higher productivity. Furthermore, it helps in elimination of
the waste and enhance market image of the company (Hosain, 2019). Thus, it can be said that
such concepts are taken into consideration by Gxo logistics so that Amazon is able to achieve
certain long and short term objectives in timely manner. Also, through help of the such external
agencies the firm is able to easily adapt to the changing business environment and market
conditions. Thus, efficient supply chain management had helped amazon in ensuring greater
customer loyalty and the satisfaction and through such continuous efforts it is been able to enter
into new markets and expand the online business against some top competitors in the market
Moreover, GXO logistics had not only made the working of the business easier but also through
use of such logistics the firm is able to ensure the best flow of goods, services and information
under the overall supply chain.
Customer engagement on amazon
It is very important for amazon to have efficient customer engagement so that it is able to
easily introduce new product line in target market. Also, customer might be engaged with the
business through identifying each individual needs and preferences so that best of services might
be provided in the long run (Tjahjono, Fachrunnisa and Palupi, 2019). Furthermore, through best
customer engagement amazon is able to create the best relationships with target market and also
able to increase the brand loyalty and awareness about various products in best of manner.
Further, amazon has launched various membership programs where the customers would be able
to avail various benefits from the online official website thus enhancing the engagement and
greater revenues from selling various products.
Moreover, website is devised in manner that it is able collect timely feedback and
reviews from the customer on its different products so that certain changes if required might be
made on time. Also, company is currently focused on following customer centric approach
where the only motive is ensuring the best customer experience so that more number of potential
customers might be attracted towards the business (Koumproglou and Biginas, 2022).
Furthermore, this concept it might be linked with content theories and specifically Maslow
hierarchy theory that states that there are various motivation factors of individual that needs to
be analysed before selling product in the market. Also, based on this theory there are various
levels of needs in she of the pyramid starting from the lowest to highest such as basic needs,

safety needs, belonging needs, esteem and self actualization. Thus, through following this
approach amazon manufactures and sells the products in various regions that further helps in
creating engaged customers for future success. However, customer engagement on Amazon is
not only through identifying motivating factors but is also through ensuring proper monitoring of
customer and its views by developing various metrics and getting the valuable insights. Thus, it
is very crucial for any company to invest in long term relationships with the customers so that
greater profitability is gained and also the business is build through the getting suggestion from
the customers that requires certain changes to be made within the products (Dahiya, 2020).
Moreover, customer journey is another tool through which the firm is able to know about
customer touch points so that more personalized services might be offered and greater loyalty
might be maintained over the period. Also, amazon through capturing the business analytics is
able to develop the best engagement strategies. Further, these strategies are on the basis of the
customer websites visit, total time spent, products that have been searched most on website etc.
Hence, technologies has also allowed the business to have the best customer engagement in
various parts of the world.
Primary Research
In this research about the Amazon's logistics and customer engagement review 30
employees has been selected for the purpose developing themes. These employees are randomly
selected for the purpose of developing themes. Consent has been taken from the employees
regarding the developing.
Theme 1 There are many reason logistics is important for Amazon.
Logistics has been considered to be very important for the organization as it allows the
company to be able to maintain the flow of the business. For Amazon, it has been considered to
be very useful for being able to Acquiring Resources, Storing and Transporting. All these factors
are considered to be very effective and important for the company to be able to deliver the
products for the sake of better and faster delivery options. Amazon being on the largest selling
and buying platforms in the world has been considered to have a very relying on its logistics
system to be able to provide the customers what they want (Tijan and et.al., 2019). It is also said
to be the factor that allows the company to be able ship and deliver the services to the customers
on the given time. The logistics of this business are also said to be the key providers of the
business and the issues that are related to them in order to gain the self contractual people that

helps the employees for the providing the pick of deliveries. The logistics of this company helps
the shoppers to be able to get their products at places which they want.
Theme 2 Proper management of logistics help business to gain cost effectiveness
From the analysation of responds from the respondents it can be said that the strong
management of the logistics helps the company to gain cost-effectiveness. Proper management
of the logistics helps the company to be able to save the costs that it would have to incur
otherwise. This happens due to the inventory tracking practices that the company does in order to
achieve the real time alteration for the fulfilling the strategy of the business. It is also said to be
the factor that also allows the company to reorder the product effectively and save the costs that
it might have to face otherwise. Forecasting is also considered to be one of the key factor that
allows the logistics to be cost effective tool for the organization in order to gain the effectiveness
that is requires. Better logistics helps the company to save a lot of time that is directly related to
the ways in which the organization can save the additional expenses that it might have to pay.
Over all logistics is essential for better cost effective due to the essential needs it has for
Amazon.

Theme 3 Training can help in improving supply chain and logistics.
Logistics is considered to be one of the very important part of the operations of Amazon.
Hence, in order to develop better and enhanced performance the organization requires keeping
enhancing it with the means of training, technology and also Automation. According to the
respondent's logistics of Amazon improves with the help of proper training. Training in logistics
is very crucial factor as it helps the company to gain success with all its operations. It can also
bes said as the factor that is considered to be relevant and sound knowledge for the logistics and
the importance of acquiring good logistics training. It is very important for the company to be
able to gain competitive advantage that is required by Amazon to be able to be success and also
provide shipments of merchandize towards more precise and swift manner. It can be said that
providing the company with the finished products is also very important in order to be able to
ensure the raw materials and also provide the organization with the key for gaining competitive
advantages.

Theme 4 Yes the Amazon delivers what it promises.
From the responds of the employees it can be said that Amazon is very precise with the
products that it delivers to the customers. In order to maintain this level of accuracy in the supply
chain this organization require factors that can help the company develop new strategies that are
required for the management of the services. It has been said that the effectiveness of the
organization depends on the ways in which the customers are able to get satisfied in order to be
effective. This is also considered to be the strategies that bring the organization with the
customer loyal and retention which is considered to be the key towards the management of the
performance that is required to be managed (Mohammed and Rashid, 2018). Focus of this
organization has been said to be the factor that allows the company to be able to develop new
strategies which is considered to be effective for the growth of the organization. For this
company being able to develop the operations is also very effective to be able to provide the
company with the effectiveness that is required. Amazon through this practice has been able to
develop better practices which are related to the growth of the company.

Theme 5 Products of Amazon has slightly high prices
The focus of this company has to be on the ways in which it can earn profit. Profit of the
company can be made through keeping the prices of the product higher than that allows the
company to be able to price its products higher. The focus of this company is also very important
for the company to be able to gain the quality that is required in order to generate the profit. Price
is also considered to be the key determinant towards the ways in which the company is able to
provide the customers the essential requirements. Price is also a very effective approach that
allows the company to be able to gain customer engagement. Being able to develop better
relations with the customers through low price would be a very effective strategy for the
organization to undertake in order to achieve the growth that is required (Kurdi, Alshurideh and
Alnaser, 2020). For keeping the price lower in comparison to that of the market is very important
for the opportunity. This is also considered to be the factor that allows the organization to be able
to develop the growth.

Theme 6 Free benefits increases customer engagement
From this study is has been found that the customer engagement increases when the
customers are able to gain engagement from the operations that are considered to be achievable.
This is also the benefit to the customers which is also said to be the key to the study that explains
the customer's engagement towards the organizational operations (Shokouhyar, Shokoohyar, and
Safari, 2020). The free benefits that the company provides with the sales is also a way of sales
promotions along with also a way in which the company is able to influence the customers
decisions making. Being able to gain the competitive advantage is also very important for an
organization to be able to develop the competitive growth that is very essential for an
organization.

Recommendations
 It is suggested to the firm that it should focus on improving the product pages on website
through providing more accurate details and image so that customers that are shopping
online are able to get complete overview of the product and thus will raise fewer queries
of the help desk that will further save the time of the company in focusing on other
activities of the firm (Barbaranelli and et.al., 2019). Moreover, the firm should focus on
hiring the skilled employees more so that they are able to provide better solution to the
company that are essential for the growth.
CONCLUSION
From the above report it can be concluded that supply chain management and logistics
plays very important role in delivering the right kind of goods to large number of people.
Furthermore, the study had explained in detail about various strategies that are been used by the
amazon for managing supply chain in best and effective manner. Also, detailed description of
role of customer engagement in ensuring the future success along with use of the Maslow theory
for better explanation had also been provided. Moreover, customer engagement strategies and the
amazon current working had also analysed. Lastly, certain finding and research from both topics
selected had been described in detail under this report.

REFERENCES
Books and Journals
Barbaranelli, C. and et.al., 2019. Positivity and behaviour: the mediating role of self-efficacy in
organisational and educational settings. Journal of Happiness Studies. 20(3). pp.707-727.
Dahiya, R., 2020. Does organisational sustainability policies affect environmental attitude of
employees? The missing link of green work climate perceptions. Business Strategy &
Development. 3(3). pp.395-403.
Hosain, M.S., 2019. Unethical pro-organisational behaviour: Concepts, motives and unintended
consequences. Asia-Pacific Journal of Management Research and Innovation. 15(4).
pp.133-137.
Koumproglou, A. and Biginas, K., 2022. Exploring the Unique Start-up Organisational Culture.
In Small Business Management and Control of the Uncertain External Environment.
Emerald Publishing Limited.
Kurdi, B., Alshurideh, M. and Alnaser, A., 2020. The impact of employee satisfaction on
customer satisfaction: Theoretical and empirical underpinning. Management Science
Letters. 10(15). pp.3561-3570.
Mohammed, A. and Rashid, B., 2018. A conceptual model of corporate social responsibility
dimensions, brand image, and customer satisfaction in Malaysian hotel industry.
Kasetsart Journal of social sciences. 39(2), pp.358-364.
Nacife, J. M. and et.al., 2021. Bibliometric analysis of Organisational Behaviour. International
Journal for Innovation Education and Research. (10). pp.357-369.
Shokouhyar, S., Shokoohyar, S. and Safari, S., 2020. Research on the influence of after-sales
service quality factors on customer satisfaction. Journal of Retailing and Consumer
Services. 56. p.102139.
Tijan, E., and et.al., 2019. Blockchain technology implementation in logistics. Sustainability.
11(4). p.1185.
Tjahjono, H. K., Fachrunnisa, O. and Palupi, M., 2019. Configuration of organisational justice
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Business Excellence. 17(3). pp.336-360.
Online
Led by our values. 2022. [Online]. Available through:<https://www.gxo.com/about-gxo/values/>.

APPENDIX
Q1 Why is logistics important Amazon?
Acquiring Resources
Storing
Transporting
All of the above
Q2 Proper management of logistics helps business with?
Cost effectiveness
Sales
Marketing
Q3 How can supply chain management and logistics improved?
New Technology
Training
Automation
Q4 Does the company deliver what is promises to the customers?
Yes
No
Q5 Are the prices of Amazon and its product high?
Yes
No
Slightly
Q6 What addition do you think the company can make for customer’s engagement?
Personalized Experience
Free Benefits
Building Relationships
[Online]. Available through: <>