Service Delivery or Production Process Within Amazon Report 2022

Running head: SERVICE DELIVERY OR PRODUCTION PROCESS WITHIN AMAZON
Service delivery or production process within Amazon
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Executive Summary
The report focuses over the present kind of problems that are being faced by Amazon within the
processes that are followed within the warehouse team offered by the company. This report
figures out the existing kind of processes that are offered by the company and the kind of
problems that are being faced by the internal warehouse team of the company. These problems
are considered as critical for the growth of the company. Any kind of problem that are being
faced would lead to negative impacts towards customers and the company. The current processes
involved within the company is mainly due to improper handling of packages, late delivery
service and choosing the preferred delivery partner by customers. The process change strategy
have also been proposed within the study based on improving certain process. The report also
puts focus on the use of diagrams for depicting the change processes within the company. In
order to deal with the wide ranging issues that are being faced by the company, the report also
underline a certain list of recommendations that should be followed in order to increase the
chances of improvement of the present strategies and improving the present relationship with
customers.

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Table of Contents
1. Context and Background.............................................................................................................3
2. Quality Definition appropriate to the Process.............................................................................4
3. Description of Existing Process...................................................................................................6
4. Identification of Existing Problems and Relevant Causes...........................................................7
5. Recommendation for Process Improvements............................................................................10
6. Description of Process Change Strategy....................................................................................12
7. Description of Expected Quality Outcomes..............................................................................15
8. Conclusion.................................................................................................................................17
References......................................................................................................................................19

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1. Context and Background
The infrastructure for Amazon logistics has always been in the process of improving their
services for the betterment of their customers. They also strive to deliver goods while also
increasing their brand reputation. The kind of service delivery processes that are followed at
Amazon has been quite innovative and this has further resulted in the growth of the reputation
and building a trust factor in the mind of customers (McFarlane, Giannikas and Lu 2016). The
result that would need to achieve with the help of service delivery program could vary from one
seller to another. This also mainly depends on the seller and the ways in which they would
understand the business concerns of Amazon Logistics Program and become more proactive
within their actions.
On the other hand, Amazon follows agile based strategies based on searching new ways
based on improving the systems in which the items that needs to be delivered are sorted and
arranged for quicker delivery. Amazon receives about 45 orders per second and thus they have to
enhance their service processes in order to match with increasing demand of customers
(Angeleanu 2015). The fulfilment centres at Amazon are located at all parts of the world. These
fulfilment centres comprise of employees who travel from one part of the centre to another in
order to locate the products, pack them and put them into the service delivery van. In the present
times, Amazon has tied up with different logistic service provider companies such as USPS, UPS
and FedEx in order to deal with the increasing number of orders that need to be delivered on
urgent basis.
Amazon also helps in offering same-day to 7-day delivery options. It also hosts different
kind of third party logistics partners that are present all over the country. These includes

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bicyclers, walkers and motorcyclists who help in offering the delivery options in a fast mode.
These separate logistic partners who have been contracted by Amazon pick up the goods from
the warehouses and sort them as per their immediate needs of distribution (Chen et al. 2016).
They are thus supported by Amazon supported technological platforms, which further guides
them during the entire delivery process. However, Amazon also provides additional facilities
such as flexible working schedules and picking up of shipments at the own will of their delivery
partners.
2. Quality Definition appropriate to the Process
Quality is a huge concern that needs to be maintained at every aspect of a business
process. Any form of business, which would not be able to conform to the standards of quality
within the procedures and processes would surely fall apart. Hence, it can be understood that
quality is a major concern in any kind of department such as sales, control over cost factors,
productivity factors, compliance and risk management procedures.
However, in the presently discussed case based on the service delivery process followed
at Amazon Logistics, the definition of quality that could be identified is – Quality as an
Experience (Klumpp and Heragu 2019). These customers who purchase or avail a wide range of
services from Amazon mainly depend on the aspect of quality and the long term relationship that
is maintained by the company.
The factor of quality is considered as a satisfying experience. Customers would not only
purchase or avail the offered services from Amazon just for the sake of making a purchase for
their needs. They would also expect a long term relationship and end-to-end experience with the
company. The experience in terms of aspects of quality could be measured with the help of

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bottom line metrics such as return visits, revenue generation and customer lifetime value (CLV).
Whenever a customer would be satisfied with the metrics of quality, they would definitely agree
to receive the same kind of service at a later time. This could be calculated by the management
team at Amazon who would keep a close look over the frequency of visits made by a customer
(Fan and Li 2014). An internal algorithm could be placed within the code section, which would
determine the visits made by a customer and the number of purchases made by an individual
customer.
The amount of revenue generated by the company should be calculated based on the
number of times a customer would make a purchase and the entire revenue generated in a single
year. This kind of calculation of revenue would help in understanding the ways in which revenue
have been generated and the calculation of profits for the company.
Amazon has their own Consumer Intelligence Research Partners, who have a primary
responsibility to estimate the amount of money spent by a customer during making purchases.
Hence, Amazon should develop new options in which customers could subscribe themselves for
competing with the price factor and thus increase their lifetime value. With the application of the
CLV, Amazon would be able to gain idea about the most profitable segment of customers and
thus can focus over future development.
In the case of the service delivery processes by Amazon, it can be discussed that the
company primarily employs highly skilled experts and delivery service specialists who have high
form of experience based on increasing the speed of delivery and improving their reach to
customers. Amazon had introduced a Prime service for their customers. Customers had to pay for
an annual membership fee in which they would receive their products within a two day time
frame. This facility proves to be a major game changer for the company.