Operations Management of Amazon

Added on - 21 Apr 2020

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Running head:OPERATIONS MANAGEMENTOperations managementName of the studentName of the universityAuthor note
1OPERATIONS MANAGEMENTSales and operations planning in supply chain integrationAmazon is the leading example of effective usage of the supply chain management.Amazon has been able to gain competitive advantage in the market and is feared by most of itscompetitors, as they are able to acquire more and more consumers due to their strong supplychain management. Moreover, the organization made a global supply chain move, which willdisrupt the access to the products, accelerate the rate of delivery and lower the cost structure. Theorganization has been using vertical integration, which has facilitated in improving theircompetitive advantage in the market (Christopher, 2016). Thus, Amazon has become the marketleader in their industry and has been successfully offering service to other organization indifferent sectors. Moreover, various researchers have predicted that the polices implemented theorganization will be the future of logistics ad supply chain management. This shows thatintegration of supply chain ash the key to maintaining the long term sustain ability ad gainingcompetitive advantage in the market (Ross, 2016).Amazon's medium and long-term forecastThe long-term and medium forecast of the organization suggests that it is essential togain the confidence of the investors. In the past, the investors have been disappointed due to theshort-term results. The supply chain integration is one of the major incorporation in to thebusiness model of the organization, which will be able to evaluate the organization processes toidentify the changes that are required to maximize the revenue streams. The infrastructures of theorganization are well developed. There are 145 warehouses of the organization in different partsof the world (Stevenson & Hojati, 2007). Moreover, the organization has made investments insystems, which will be used for handling of materials. The most relevant system includes Kivathat is used for designing of workstations, hardware and robots. The organization consists of
2OPERATIONS MANAGEMENTtheir own cloud computing systems which have helped in the development of the transportationsystem that is being used for the Fresh same day grocery business of the organization.Impact of logistics, transportation modes and warehouse locations on competitivenessAmazon has expanded their logistics and is incorporating most of the characteristics ofthe third party logistics. Warehouse, logistics and transportation affects the competitiveness ofAmazon by establishing the means of advertising for the consumers in the market. This alsofacilitates in selling of the products, picking, packing and shipping (Lee & Whang, 2012). Theorganization has developed infrastructure so that they can provide service to the otherorganizations in the market. The organization has been able to provide service to the externalclients and compete with the other companies in the market by developing an efficient logisticsystem.Impact of global sourcing and procurement on overall effectiveness of the supply chainGlobal sourcing and procurement has been able to reduce the cost of operation for theorganization. The cost structure has been directly impacted by the use of reasonably priced rawmaterials and low cost labours. Global outsourcing will facilitate in making market entries wherethe tax laws are favourable (O'Brien et al., 2017). Amazon has been able to make entry in to newmarket and accommodate new cultures and systems due to the use of global sourcing. Thisshows that Amazon has been able to make effective use of procurement and global outsourcingto improve the operations and increase the revenue streams.Benefits and challenges of outsourcing logistic and other functionsThe Amazon for improving the operational effectiveness and efficiency uses the thirdparty providers (Schuman, 2017). This also helps to reduce the freight cost and improve the
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