This article discusses the implementation of supply chain activities in Amazon, as well as the issues and challenges faced by the company. It also explores the role of airports in the company's supply chain and the issues related to airport security and policies.
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Running head: SUPPLY CHAIN MANAGEMENT IN AMAZON SUPPLY CHAIN MANAGEMENT IN AMAZON Name of student Name of university Author’s note:
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SUPPLY CHAIN MANAGEMENT IN AMAZON Answer of question 1: Implementation of the supply chain activities The supply chain of Amazon company works in the context of providing the customers of the company with the best quality products in minimised delivery time. The company implements the activities of the supply chain with these following strategies: Strategy 1: Adoption of the planning that is driven by the demand and the operation model of the business that is based on the current insights of demand and the shaping of demand. This strategy mainly consists of the execution of the right prediction and the tools for planning of the contingency and it would help in ensuring the total view and the effective response for the risks like the suppliers shutting down their business, political disruptions and the major activities that affects the manufacturing aspects (Yu et al., 2016). The company adjusts the pricing and the strategies for promotion for the shaping of the demand and then move the extra product efficiently, which would help in the driving of the growth of revenue. Strategy 2: Built an agile and adaptive supply chain along with the swift planning and the combined execution. The company deployed the capabilities of the dynamic planning and continuous fine-tuned operations for ensuring the agility of the response for meeting the changes in the demand. Strategy 3: Optimised the product designs and the management of the product for manufacturing,sustainabilityandsupplyforacceleratingthebeneficialinnovation (Christopher, 2016). The company made the swift and strict decisions in the early stages of the development of product and these decision helped in the shaping of the products. The designs were optimised for the manufacturability, operations of supply chain and the supply. The company understood the aspect of the product innovation and the competitive advantage bases from the choice and management of the technologies and the suppliers. The company
SUPPLY CHAIN MANAGEMENT IN AMAZON manages the information, processes, people and the decisions related to the products of the company which helps them in obtaining advantages in the retail market. Answer of question 2: Figure:Supply chain of amazon Some of the issues in the supply chain of amazon are: Customer service: The supply chain of the company is mainly focussed on the delivery of the best quality products to the customers in minimal time. The company provides the customers with the right products in right quantity (Hugos, 2018). It might be a simple aspect of the supply chain but sometimes there are issues in the customer service sector. The demand of the customers might change after receiving any product or the product might not be same as what was promised. These factors lead to the damage of the reputation of the company. Cost control: The costs of operation are facing severe challenges due to the extreme rise in the cost of the energy and fuel along with the freight (Sanders, 2014). With the increase in the quantity of the global customers, technology and the labour rates the company SendinventoryReceiveandstoreCustomerordersproductPick,PackandshipCustomerserviceCustomerreturns
SUPPLY CHAIN MANAGEMENT IN AMAZON faces several challenges for effective management of supply chain management. These costs adds up to be the extra issue for the capital of the company and the quality of the customer service gets depleted Risk management and planning: For sustaining effectively and efficiently in the changing market, the periodic and possible assessments and redesigns are required to be made for adopting to the changes in the dynamic of the markets (Leveling, Edelbrock & Otto, 2014). These changes are majorly focussed on the significant changes in the market like the launching of any new product, the global sourcing, and the availability of the credit and the requirement of protecting the intellectual property. The company faces this issues in the supply chain and they have implemented appropriate technologies for overcoming this issue. Partner/supplierrelationshipmanagement:Thisaspectofthesupplychainis important for creating understanding and following on the standards that are agreed among the company and the suppliers (Vendrell-Herrero et al., 2017). The company consists of the two distinct methods for the measurement and the communication of the results of the performance, which wastes significant time and money. Answer of question 3: The airports plays an important role in all the supply chain processes that might be regional and the global from any market to market. The facility of shipping by air is commonly uses for the products that might be time sensitive or might be of significant high value and it could justify the higher costs of the transportation in comparison to any other methods (Ayers & Odegaard, 2017). The company has implemented the Fedex that is the majorly used for the transportation of the goods globally. The airports add significant value to the supply chain of company. These airports increases the efficiency of the supply chain of Amazon Company significantly and provides
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SUPPLY CHAIN MANAGEMENT IN AMAZON the opportunity of the increase the efficiency of the customer service (Fawcett & Waller, 2014). The customers expect their products to reach to them as quickly as possible and with any damage. The company uses the airports for shipping the cargo by air using airplanes at the minimum cost and the minimal time without damaging any of the product. This reduces the operation cost significantly. The company depends on the managers of supply chain for the designing of the network that meets the objectives of the customer service at minimal cost. The efficient supply chains allows the firms to be increasingly competitive in the dynamic market. The major issues of the airports that are hindering the performance of the supply chain of the company are the security and the policies. It has been observed in the recent times that the security issue of the airports is growing to be significant and it creates problems for the supply chain of the amazon company. The air cargo that has to be shipped using air to various places are prone to theft and misplacement. The policies of several airports of various countries implements strict restrictions on the air cargo and this increase the transportation cost and it damages the performance of the supply chain.
SUPPLY CHAIN MANAGEMENT IN AMAZON References Ayers, J. B., & Odegaard, M. A. (2017).Retail supply chain management. CRC Press. Christopher, M. (2016).Logistics & supply chain management. Pearson UK. Fawcett, S. E., & Waller, M. A. (2014). Supply chain game changers—mega, nano, and virtual trends—and forces that impede supply chain design (ie, building a winning team).Journal of Business Logistics,35(3), 157-164. Hugos, M. H. (2018).Essentials of supply chain management. John Wiley & Sons. Leveling, J., Edelbrock, M., & Otto, B. (2014, December). Big data analytics for supply chain management. InIndustrial Engineering and Engineering Management (IEEM), 2014 IEEE International Conference on(pp. 918-922). IEEE. Sanders,N.R.(2014).Bigdatadrivensupplychainmanagement:Aframeworkfor implementing analytics and turning information into intelligence. Pearson Education. Vendrell-Herrero, F., Bustinza, O. F., Parry, G., & Georgantzis, N. (2017). Servitization, digitization and supply chain interdependency.Industrial Marketing Management,60, 69-81. Yu, Y., Wang, X., Zhong, R. Y., & Huang, G. Q. (2016). E-commerce logistics in supply chain management: Practice perspective.Procedia Cirp,52, 179-185.