Ways to Improve Supply Chain Relationships, Mitigate Risk, and Reduce Cost

Supply chain
management

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Discuss different ways to improve supply chain relationships..............................................3
Explain several ways to mitigate supply chain risk and reduce cost of supply chain............4
Examine ways through which entity can improve supply chain sustainability.....................6
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11
Books & Journal:..................................................................................................................11

INTRODUCTION
Business sector is increasing at wider scale in which suppliers and supply chain
management play important role an exhibition of functions and operations in market. Supply
Change management is defined as process of flow of goods and services which comprises
methods from converting of raw materials into final products (Beck 2017). Competition
level in business has also increased which makes it essential for donations to focus on their
supply chain management. Amazon, multinational corporation technological firm
headquartered in US. Organisation deals in artificial intelligence, consumer electronic goods
and products and e-commerce websites etc. It is located at global scale and has many
competitors in market like eBay, Walmart and many more. This report comprises of concept
of supply chain, different ways through which it can be improved, methods of reducing
supply chain cost and risk as well as how sustainability in supply chain is increased by
enterprises.
MAIN BODY
Discuss different ways to improve supply chain relationships
Supply chain management is a longer procedure which consists of different types of
stages and activities which focuses on converting of raw materials into final products for
consumption and sale. It is critically important for Amazon to improve their supply chain
relationships in order to execute other processes in well effective manner (Chen, 2018).
Amazon has global clients and they also have number of suppliers across the globe with the
help of which they are capable of delivering their products and services into every part of a
country. Amazon focuses on implementation of long-term strategy when it comes to supply
chain as they sell differentiation products into smaller entities and on the basis of demands
and needs of customers. In business, relations are to be properly maintained so that decisions
can be undertaken accordingly. There are different types of strategies which are adopted by
Amazon with purpose of improving supply chain relationships across the globe which are
further discussed as follows-
 Segmentation of customers- It is most effective strategy which can be used by
Amazon in which they are needed to segment their customers according to their needs
and demands. To maintain and manage as well as developer optimistic relationship
with customers it is critically essential for selected organisation to focus on this

segmentation strategy which helps them to make decision and provider prime
customer delivery services to customers at all aspects. Segmentation of customers is a
time-consuming process but is essential and need to be implemented with reliable use
of information of market and changing situations.
 Multi-tier inventory system- This is another appropriate strategy which is to be
adopted in which Amazon have a multi-tier system as because they have a number of
suppliers and which are connected with the one single supply chain which also results
in low cost as well less reduces capital assets of business.
 Systematic communication- It is also related strategy which is being carried out by
Amazon in which they aims towards carrying out the effective and systematic
communication in supply chain processes which is beneficial for reducing risk and
leads to carrying out processes in systematic manner. Communication is necessary to
be carried out in most efficient way so that message and information are properly
understood by every individual in management which results in execution of roles and
responsibilities appropriately. For example- for communication, supervisors can use
entity’s internal system, mail, online channels like Facebook, Instagram etc. on basis
of which information can be shared easily.
From above explained matter, it is seen that it is critically important to improve supply
chain relationships on the basis of which it become easier for Amazon to carry out their
business activities in most efficient way. It is duty of both managers and leaders to make
assure that correct type of strategies are implemented to develop positive relationships.
Explain several ways to mitigate supply chain risk and reduce cost of supply chain
In business, there are number of activities and functions which are being carried out
by organisations. Supply chain management is responsible for shaping the raw materials into
image of a product and then conception or usage is being made by customers. It is further
seen that risk related to supply chain is hire and are of different types which are needed to be
properly determined and solved. To execute business activities in convenient procedure
correct type of strategies as well as methods are needed to be adopted through which
organisation is capable of reducing risk and managing cost. Reducing cost is critically
essential so that management of Amazon is able to drive supply chain activities in cost
effective manner (Deng, 2019). Furthermore, it is too stated that risks as well as cost both to
be minimised by adoption of relevant methods. There are various ways of mitigating supply
chain risk which are described as follows-
Ensure supply quality- Suppliers and their decisions have a deep impact on business
activities as well as goodwill. To mitigate the supply chain risk it is essential for Amazon to