Logistics Performance at Amazon

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Logistics performance
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Key logistic activities at Amazon
Amazon logistics comprises shipping and delivery services that are meant to complement
existing providers that offer logistic services. Amazon logistics offers both 7 day and same day
services through utilizing a number of third party logistics services (Cichosz et al. 2017). These
are separate logistic providers that are contracted to pick up deliveries at Amazon and distribute
them to respective customers. Amazon logistics can be defined through the operational facilities
across the world. Amazon has 258 facilities in the United States and close to 500 facilities
distributed outside the U.S. Amazon logistics in the United States constitutes various services
offered by Amazon such as Whole Foods delivery goods, fulfilment by Amazon, sorting area,
and delivery stations. Amazon has its dock centers where imported goods are broken down to be
transported to relevant collection centers (Yu et al. 2017). The company’s trucking fleet was
established in 2005 and has grown over the years. Amazon began with a fleet of a thousand
trailers to move goods between docking centers and fulfilment centers.
Amazon air has a significant number of airplanes that are used for transporting products
through the air (Liu et al. 2014). The size of Amazon logistic by air is compared to the 15th
largest passenger fleet in the United States market. Furthermore, the company is putting up a 210
acre Amazon airport that is expected to support 200 daily flights. Amazon logistic activities have
increased over the years and can be explained through its rise in shipping fee from 11.5 billion
dollars to 21.7 billion dollars within two years since 2015. As a result, logistic related to
fulfilment accounted for 14.2 percent of the sales between 2015 and 2017.
Moreover, the company is making attempts to enhance its logistic innovation through
crowdsourcing deliveries from external contractors, remote door access to Amazon couriers,
Amazon lockers and drone delivery patents (Kim et al. 2016). The franchise business delivery

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model inspires Amazon delivery which implies that Amazon is capable of establishing its own
courier network as a means to reduce costs. The company is investing in innovating tracking
capabilities so that customers can be able to track their products (McFarlane, Giannikas and Lu,
2016).
Amazon logistic hiring plans suggests that 5 per cent of the company jobs are in logistics.
Similarly, a research done by Freghtos research suggests that jobs related to enterprise logistics
are in the information technology sector. Half of logistic jobs at Amazon are in the United States
while half are outside the U.S. Amazon Global logistic footprint indicates that the company has
logistics positions in various countries. In addition, more than half of the senior position require
experience. This data shows that the company is moving towards cross-border trade and
international logistics and improving courier delivery (Carbone, Rouquet and Roussat, 2017).
There are few jobs in Amazon that require more than 10 years of experience such as
principal machine learning scientists, long distance freight, supply chain program manager and
senior intermodal manager. Amazon has logistic position for Lab126 which is responsible for
services such as Kindle and Echo. More so, there are other positions that offer flexibility in
logistics such as software and operations roles. These services point to a growing demand for
deliveries across new geographies, larger package size and rush shipment. There are few job
descriptions that focus on ocean freight related to Amazon.
How key logistics activities affect Amazon performance
A Balanced Scorecard Approach is a strategic management measure that offers clear
indication of what company’s need to manage to improve performance of other areas as well.
The balanced scorecard approach offers organizations with an opportunity to clarify the vision

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and strategy of the company. Consequently, it offers feedback on both internal and external
business process to enhance strategic performance.
The four Measures of Balance Scorecard
Financial perspective
In order to improve the financial position of the company to shareholders. Amazon has
considered increasing its package delivery and logistics services by introducing a new system
that enables entrepreneurs to set up their business to deliver Amazon packages. This strategy
creates value for delivery franchise as owners will be in a position to make significant profits.
Owners of delivery business are provided access to delivery technologies, hands-on training and
discount on vehicle insurance. Through creating and capturing value, the shareholders are in a
position to see value for money since the business always improves its logistic processes to
enhance efficiency of the company’s supply chain process. Amazon is also bringing additional