Procurement and Supply Chain Management in Amazon

This document provides an in-depth analysis of the procurement and supply chain management in Amazon. It covers the vision, mission, and strategic goals of the company, findings of supply analysis, operations analysis, information analysis, integration analysis, and sustainability analysis.

Running Head: Procurement and supply chain management in Amazon 1
Procurement and Supply Chain Management in Amazon
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Procurement and supply chain management in Amazon 2
Executive Summary
Amazon is an electronic commerce in America and computing Cloud Company that was founded
in 1994 as a book store. It was expanded after some time and it became store of almost
everything. The amazon company is mainly based as an online store. The amazon company
launched its stores in a physical way in 2017 and from that it generated over ten billion in US
dollars from the revenue. The amazon prime is a subscription service in amazon while plays a
very important role in model of amazon businesses. The amazon company is mostly guided by
its mission and vision which they set aside the time they installed the business.

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Contents
1. Vision, mission and strategic goals of the company…………….4
2. Findings of supply analysis …………………………………….5
3. Findings of operations analysis ………………………………………6
4. Findings of information analysis …………………………………….7
5. Findings of integration analysis …………………………………………7
6. Findings of sustainability analysis………………………………………8
7. Discussion of the company's procurement and supply chain analysis ……10
8. Discussion of improvement programs ………………………………………11
9. How improvement programs can assist the company to achieve its vision, mission and
strategic goals ……………………………………………………………12
10. Conclusion………………………………………………………………12

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1. Vision, mission and strategic goals of the company
The vision of the Amazon Company is to be the most centric customer company; build a
nice place where individuals can discover and find anything they want online and buy it. The
mission statement of amazon is “we strive to offer our customers the lowest possible prices, the
best available selection and the utmost convenience (White, 2016).” This company is guided by
principles which are four in number. These principles include passion in invention, thinking in
long term bases, been obsessed by customers rather than the competitors and operational
excellence commitment. These four principles used by the company are the main goals and
objectives of this company (Kim, 2015).
2. Findings of supply analysis
Amazon Company has competitive advantage by the choice of its customers. It has been
combining multi-tier management and information technology and also wide network
warehouses which are geared thus aligning its competitive strategy. They have been outsourcing
its distribution of the products and the storage of those products that re not purchased frequently
or those which are not ordered and delivered immediately (Kaplan, 2014). The company of
amazon orders its stock frequently to its ware houses so that they can respond to the needs of the
customer immediately and not to compromise the delivery periods in the lead times. Amazon has
divided into segments its customers and also the differentiation in its price strategy. The Amazon
uses first-class delivery, free super saver delivery, prime delivery on customers and one day
delivery as forms of delivery on its products.

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In all divided segments, the Amazon Company offers option of paying extra amount of
money when the customer needs faster delivery or it uses the lead time mode which is
traditional. Company segmentation and the inventory outsourcing is coupled by Amazon
company into customers price differentiation which offers the customers with the agility and also
the nimbleness in market which changes the prices according to dynamic fluctuations and the
demand of the product. The amazon is always incomplete when it lacks the system multi-tier
inventory. The distribution aggregation makes sure that the inventory in the company is few and
also it responds to the demand of the product in a dynamic way. The company relies on the
wholesalers and the partners to supply the products to the customers. They also use real time IT
which is sophisticated so as to make product distribution leverage.
3. Findings of operations analysis
Technologically and has optimal services efficiency. Amazon Company has ten decisions
which Amazon is the leading player in productivity and in e commerce industry. It is supported
are strategically for how the management operations increase and expand the organizations in
business diversity. The continuous improvements of the of amazon make the capability of
maintaining the operations even though in product mix broadening and global expansion may not
work out. These decisions include goods and services design. This is the output design coverage
in decisions made in operational management. The company uses communication and
information technologies which are highly advanced which ensure that retail services are
operating efficiently every minute. Second decision is making sure the company has quality
management. This is the main objective which makes the company to have operational output of
high quality and which satisfy every need of the customer.

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The third decision is the capacity and process design. It is the objective of Amazon
Company which is aimed at optimizing the capacity and production process. The amazon uses
extensive automation which streamlines the processes in its business. The fourth decision is
location strategy. This is the way the products are accessed in the market and has considered the
area strategic decisions in operational management. This is the reason as to why the amazon
company maintains its ware houses where there are a lot of customers. The others include
strategy layout design, maintaining optimal inventory, streamlining supply chain, scheduling
short term resources and, maintaining the stability and reliability of business processes.
4. Findings of information analysis
Amazon is analyzed as the largest retailer online which uses its competitive advantage to
become a dominant player in the industry. The amazon company has the following strengths.
The main strength of Amazon Company is a very low structure, party sellers in huge numbers
and merchandise selection which is largest. The company has earned over 140.235 billion US
dollars which are purely from the sales online in the year 2017. That is more than any other
retailer in the whole world. In the year 2015, the company amazon wad ranges the second largest
retailer in the whole world in terms of revenue. The structure of low cost has attracted many
customers to amazon. The company invests in additional centers of fulfillment which reduces the
costs of shipping the goods and the times the order is getting fulfilled.
The Amazon Company has weaknesses also. The company made one trillion dollars by how it
reflected skyrocketing success to its retailers. The largest weakness of Amazon Company falls
under plus size cloths, those tall consumer customers and petite clothing. The rate at which
individuals buy cloths at amazon is approximately around 6%. Also the things for luxury

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purpose are on the weaker side of amazon. This is because the markets undermine those good
and are under strict control and that’s why the sense of maintenance is exclusive making the
prices to remain high always. The concerns of the many customers on amazon purchases on
goods from some brand conflict amazon with counterfeiting. The amazon company 3P or that
market place of third party leaves the merchants to sell their goods in an environment which is
unregulated.
5. Findings of integration analysis
Integration analysis is a form of theory which was used by the amazon company as a bad
reputation to the company and it advanced calculus. This is the old theory as it was improved by
the modern theory. It includes the Riemann integration and the classical theory. This is the
theory that Amazon Company used as it’s the best in selling. Its manuscript had revision which
is manuscript in the materials needed by the amazon company (Kaplan, 2014). This covered the
Lebesgue and the measures of the Bernoulli where the relationship between the staffs and the
company customer is evidenced clearly.
6. Findings of sustainability analysis
The Amazon Sustainability (AS) works together with the Amazon Web Services Open
Data (AWSOD) to make sure there is sustainability and databases are available on simple storage
services and they bring storage service which is very simple to the company, removal of heavy
undifferentiated lifting by making sure that the datasets are pre-processes for retrieval in optimal
manner. They take databases which are sustainable from weather radars, agricultural studies,
government, studies of the atmosphere, and geological studies among many others. In the year

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2018, both amazon sustainability and amazon web services released their first dataset groups
which added new categories of data to an open datasets which where existing. Those
sustainability datasets where available public thus making the AWA to improve the ways of
accessing more ease to those datasets. This was done by separating archive files which are large
from small chunks which are addressable and that can make them to be independently retrieved.
Amazon Web Services provided documentation for using searching tags and open
datasets sustainability of the datasets. The African Soil Information Service ASIS dataset was
used by Amazon Company as a point of starting to learn on how to apply the machines in
learning the open data using notebook of Jupyter Walkthrough (Hu, 2012). The contributions by
third party to the individuals of the community on how to use of the open datasets was brought
by blog publishing by Walkthrough Jupyrter as how the datasets can be used publicly. AWS has
continuously been adding indexes to that open dataset so that ease of accessing is increased
which include the file naming, external indexes and internal indexes.
7. Discussion of the company's procurement and supply chain analysis
The amazon company is a financial system. In the amazon company stopped using old
conventional and started using the demand and supply to increase in an unpredictable way. The
company has been connected in its own parts with the partner who anticipates good yields in the
company (Kellstedt, 2011). The company has embraced new ways of looking for more
customers thus making them to gain more impressions which are insightful on what the products
they need and also the services they need the company to provide. They convert the signals with
a corresponding action which drives the customers into business mostly making them to become
more close to the leaders and staffs of the company (Lambrechts, 2013). The company has been

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adding goods in supply chain and also the products as they cannot add themselves. When the
goods and services are added in supply chain they add value of the company.
The amazon company has recognized more ways of organizing its products through
supply chain. This was possible when amazon customers started demanding more goods and
services thus making the company to seek ways in which they can satisfy the customers fully
without delay. The typical response was by use of technology which under pinned and the
process of standardization was increased (Kim, 2015). Thus, the amazon company made a very
simple alignment which leads the firm on embracing principles alignment thus reaching higher
levels of performance significantly. In order for the company to satisfy all these customers it uses
the approach and improves its internal capacity in enterprise where all the energy resources
reside.
The company also started using signals that converted into feedback of how customers
are driven by the company, staff and the leaders (Kellstedt, 2011). This aligns the amazon
company to get the feedback of the customer’s wishes from the amazon because this is a current
world which is full of alignment of supply chain. The company explored on ways which multiple
supply chains can be created and sustained within a business thus making the company more
flexible with its customers and also the company responds to the customers in a more faster way
even though its treat or an opportunity. This is the time to align with the customers, partners or
the suppliers of the amazon company (Wang, 2016). The executives get more into this
development stage where the profits start to flow more readily thus making the performance
more sustainable to both the company and the customers. This stage is what makes the company
gain a lot of profits which make the company in growing.

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After some period the amazon company introduces alignments in dynamics in supply
chain. This is because dynamics in the company provided more data concerning the customer.
This was the time which is critical in making the order in the environment for servers which
commoditized heavily under the attack. It dynamics also created cost structures properly with
appropriate serve to the company servers (Kim, 2015). The elements which are foundational on
the company are important in transformation and also privatization of the company nowadays.
The science which is behind the supply chain is endless in fascinating the company and the
customers. The more the company made some research the more it realized that supply chain
lead to heartbeat truly to the business thus it makes the foundation to be strong and more
important for the customer values and proposition. This dynamic has a lot of impact on path the
business will use in future.
8. Discussion of improvement programs
The amazon company has improved its services use of the amazon prime (Eric, 2012). This is a
subscription service which makes most of the customers spend a lot of money more than they
had planned and they became more royal to the amazon platform. This service is also a cloud for
the AWS infrastructure which became the leader of the world and also the leader in the business
margins which it made to be high (Lambrechts, 2013). The amazon company also they have
improved the physical stores by opening a lot of them in different area thus making the
customers to access them easily. They also improved their retail websites by focusing on the
areas of selection, convenience and the prices which are offered in the website.
The amazon company also started asking the home owners to let those drivers who deliver their
goods the drop the goods they have ordered inside their home when they are away. This made

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the customers to start buying more goods because of the plan of looking up their goods outside
their houses thus tossing for free devices of Alexa. Also the company started operating a
program known as extensive trade in which is program which makes the owner turn on his or her
loved books, tech, video games, movies and also gift cards more. Also this has made individual
to buy things they need and also to clutter them. The company started manufacturing its own
products to avoid getting goods from retailers which costs the company a lot and also to avoid
those companies which are not reliable (Abimbola, 2016). The goods they manufacture are of
good qualities thus making the customers to love them and when they like the goods they refer
other people to the company and they will always come back thus becoming permanent
customers.
9. How improvement programs can assist the company to achieve its vision, mission
and strategic goals
The way the programs of the amazon company are improved, they make the statements
of vision and mission to come true within the organization. (Kellstedt, 2011) The success is
attributed by measures which are stringent and makes sure that every statement of vision and
also of the mission is fulfilled positively. The theory of vision corporate statement mostly
provides directions in the organization which faces towards the future goals which are desired by
the organization. The corporate mission on the other hand presents the main goals of the amazon
business and also strategically guides the management that is used in the company (Kim, 2015).
The mission of Amazon Company mostly focuses on an effective ways of business analysis and
also on the quality of the services provided. The improved program also emphasis that the

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targeted customers are easily accessible in convenient places and they select goods in an e-
commerce market.
Through the improvements of the amazon company, the mission and vision statements have been
satisfied. This is because the company reaches al targeted customers and also segments in each
with best prices and also with convenient services and with a lot of variety products. The amazon
company has also added more details on corporate mission so as to provide the customers with
best ideas on the where about of the company. This was only possible through improvements of
the digital delivery contents, e-commerce, hardware and software, computing services based on
cloud and also the Amazon books. The amazon company also ensures there is sustainability of
the business in future by building a strong base now. Also the company manufacturing its
products makes sure the products are of good quality and are readily available when the
company needs them (Choi, 2016).
10. Conclusion
In conclusion, Amazon Company is an industry that has been following its vision and
mission to accomplish its goals. It has been providing its customers with quality goods and
services which make it those beloved by many. Also its low prices make more customers to be
attracted into the store. The amazon company it’s also the best because it’s an online store that
can be visited anytime of the day. Also those individuals who can’t reach the store physically can
ask their goods online and be delivered into their door step. The way the company follows its
goals is what makes it to get a lot of revel from its services and sales of goods.

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