Operations Assessment Report: Amazon's Operational Strategies

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This report provides a critical analysis of Amazon's operational management strategies, focusing on the integration of robotics and technology to enhance efficiency and customer satisfaction. It begins with an introduction to operations management and service leadership, highlighting Amazon's business model and its use of robotics in its distribution systems. The main body delves into the advantages of Amazon's operational strategies, such as improved quality control, high efficiency, and shipping optimization. The report evaluates how technology can be further embedded in Amazon's processes, including increased power, better inventory control, and enhanced coordination among supply chain members. It also explains the supporting roles of organizational infrastructure, human resources management, and technological development in Amazon's operational success, emphasizing critical success factors. The report concludes by summarizing the key findings and implications of Amazon's approach to operations management.
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Operations Assessment
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Critical analysis...........................................................................................................................4
Evaluate how technology could be embedded.............................................................................5
Explanation..................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
The management of operations is described as a business strategy to attain the highest degree of
productivity in an enterprise. In addition, the transformation of work and goods into goods and
services maximises a company's profitability. On the other hand, service leadership is carried out
as a customer oriented strategy which helps provide customers with good performance and on-
the-spot service by creating a positive brand and increasing market success (Tönnissen and
Teuteberg 2020). It is essential for each company to efficiently handle activities and services, as
they lead to efficiency and market growth. Amazon is mentioned as a build friendships in this
study. It has been established by Jeff Bezos in 1994 as an American technology corporation. The
headquarters of the aforementioned corporation are based in Seattle in the United States. Cloud
hosting, quantum computing, visual nature, e-commerce are involved in the business. This article
covers the organisational management strategies of each organisation and the effect on
performance. Furthermore, there is controversy about how technologies should be incorporated
into the process. In addition, it is properly designed to support roles related to company
management activity and how this leads to performance.
MAIN BODY
Business leadership is a practical an endeavour that promotes the production of a company's
highest degree of productivity. It deals with numerous tasks, including productive planning,
coordination, management and control that help to turn services and goods through customer
loyalty and satisfaction of customer expectations. It is necessary for an organisation to
concentrate on the management of its services and activities to achieve objectives on a timely
basis (Slack and Brandon-Jones, 2018). It is analysed that there are many advantages of high
profitability, comparative benefit, increased efficiency and so forth associated with
organisational management. A business that is inventory management, product and services
layout, human resources management, organising, quality & creativity management, etc., has a
range of organisational management activities. Robotics is the crossroads between technology,
science and technology that created devices known as robots that are primarily a substitution for
human activity. The robots are primarily mechanical weapons which are screwed or welded to a
machine component (Russell, and Taylor, 2019). A standard robot consists of a moving physical
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frame, a sensor device, a power source, a certain form of motor and a software mind that
regulates all of these components. Robots often mimic the role and behaviour of human beings.
It has nearly 2.00.000 handheld robots in distribution systems along with thousands of workers in
addition to Amazon. The robotic army allows company to deliver on schedule and efficiently
with its ever-increasing commitments to Prime video subscribers. It was an e-commerce business
with Amazon which offers a wide variety of goods and services globally. The organisation
conducts and analyses multiple systems engineering activities to help it accomplish the goals in
an effective and efficient way. These activities include quality control, management of the
supply chain, automation, inventory control, creativity, etc. Robots that efficiently handle all
processes are the key operational leadership styles employed by Amazon. In addition, it has been
established that perhaps the respective organisations, by implementing the instructions across the
factory, are using Roomba-shaped robotics identified as drives primarily to distribute huge stacks
of products to human staff. The robots' army is surrounded by a fence that recalls little that is
high indoors. Amazon workers work with robotics to evaluate how stock is processed
successfully in shelf pots, and how these items are delivered together through consumers. They
are employed at pick-and-store stations. Both of the robot's operational costs was defined to cost
about $1 million. In accordance with this in 2 decades Amazon will take back those numbers,
and these benefits will come from employing less employees, low maintenance, and so on. It
encourages not only the careful handling of activities, but also the creation of a safe working
atmosphere (Lee and Tang, 2018). This is also found that Kiva scheme was also brought in
recent years by Amazon as the biggest online retailer. Kiva was indeed a small robotics firm
which is known as an independent warehouse platform among logistics customers. But the
organisation has changed owing to its large expense to use Roomba-fashioned robots with low
servicing and well-maintainment prices. All these will assist the organisation in delivering the
goods and services to its customers in a timely and successful way and in making increased
revenues.
Critical analysis
Operational management strategies are essential for each organisation since a corporate unit
successfully conducts its roles, tasks and operations. The help robotics help successful operations
management practises to produce goods efficiently, quickly and effectively to consumers and
even to satisfy their demands and standards. With respect to Amazon, including some of the
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company's core robotic operational risk management is to handle business and distribution to
consumers in good time. There are some advantages obtained by the use of the ability to work in
robotics as organisational management which are:
Improved quality control: The organisation will sustain and enhance its operating quality by
means of robotics (Ivanov, Tsipoulanidis and Schönberger, 2017).
With respect to Amazon, by following these methods, it will efficiently and correctly perform
any process from output to distribution. It will also help them distribute and deliver products to
consumers at each customer-specified venue. All this leads to the rise in market price and
revenue which occurs due to consumer demand.
High efficiency: robots running in the factory are evaluated to provide workers with huge stacks
of items. It operates at a high pace because of the company's ability to perform operations on
schedule which in turn results in customer fulfilment on time. All this helps to improve the
quality of work and implementation that contributes to an increase in business output and
earnings.
Shipping optimization: Shipping improvement is among the key benefits or advantages that
businesses reap from the use of robotics in operations. With this support, Amazon becomes able
to accelerate its activities and offer goods and services to its customers on schedule. In addition,
the organisation is able to schedule deliveries at multiple sites that meet consumer conditions and
expectations (Heizer, Render and Munson, 2017).
Maintaining demand: The respective companies can achieve an optimal equilibrium between
production and consumption by performing robotics as an organisational management activity.
Amazon promises that its major customers will be shipped in 14 hours due to the rise with use of
robotics in due to physical use (Agrawal, Atasu and Van Wassenhove, 2019). For the
maintenance of demand as well as the provision of goods, a brand name is built on the
marketplace and is on the worldwide list including its leading e-commerce firms.
Improved Risk Mitigation: The Company can effectively decline risk thresholds that have a
beneficial effect on carrying out programmes and procedures appropriately by production and
maintenance of organisational managements. When it comes to Amazon, robotics reduce the
chance of maltreatment, inventory breakdown, etc. This helps to perform organisational
operations systematically and appropriately, contributing to improved efficiency and
sustainability of their respective organisations.
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Evaluate how technology could be embedded
For both the active building, due to advancements when the whole corporation is focused on
technology and artification. Different types of technology operate which assist companies in the
proper administration of their market and supply chain (Gao and Su, 2018). To conduct and carry
out activities, Amazon uses state of the art technology to meet its goals and accomplish its goals
in time. The following are the different ways where each company should incorporate business
procedures:
Increasing power – In order to increase the degree of control, Amazon is leveraging modern and
innovative technologies in the business process. By using new technologies, the organisation's
manufacturing is improved and supply chain practises are also corrected. There are various
issues and problems facing Amazon when conducting the mission, which also have a negative
effect on the organization's overall performance. This software is committed to ensure
accountability and to carry out the activities that satisfy the customer demands in an acceptable
way.
Better inventory control – It's crucial that a higher asset standard is retained for both the
respective organisation in order to fulfil consumer standards and demands on schedule and
properly. Amazon will reduce the degree of risk and mitigate operation expense by supporting
innovative and emerging innovations to increase the company's efficiency and earnings. In order
to minimise the risks associated with it and to boost its efficiency efficiently the company is
essential to control its stock (Engelsberger and Greiner, 2018).
Enhance coordination among supply chain members – The company is able to establish efficient
and strong partnerships and alliances by leveraging new and evolving innovations that decrease
the failure levels that occur at the moment of service. With regards to Amazon, it will properly
strengthen its partnership with vendors and other relevant stakeholders through the use of
advanced technologies. That ensures the accessibility of world's largest producer of products,
wants and demand which allows the fulfilment of the demand for order in this fixing timeline.
Develop the monitoring and distribution mechanism of orders – The company is in a position to
offer its goods and services on schedule by introducing and applying the technology. It increases
consumers' choice for buying Amazon items. It adequately improves the company's sales
productivity and growth.
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In addition, the organisation will also give consumers the possibility of monitoring their
shipment by merely inserting a code base. Both of which will lead to develop the monitoring and
distribution system, which contribute to recruiting more people and growing business
profitability. All of this is one benefit Amazon has achieved from the incorporation into the
company of mature and emerging technologies (Daradkeh, and Moh'd Al-Dwairi, 2018). It also
aims to enhance revenue and boost business competitiveness in a satisfactory way.
Explanation
The organisational control practises used by robotics are related to several supporting roles. All
these functions are determined to contribute to the execution and performance of activities which
lead to greater market development and change. Following are the supporting features:
Organizational Infrastructure: both monitoring and planning practises are reported to enable
businesses to handle their costs correctly. Equipment is expected to play a significant role
systemically in the delivery of operations and there would be a pause in the execution of the
work if this is not necessary. With respect to Amazon, the robotics operating in warehouses will
work well since large sacs are distributed appropriately to workers due to proper facilities. The
business also helps to reduce the expense of recruiting workers and to improve profits in a
suitable way.
Human resources management: HRM, which is correlated with the whole operating phase, is one
of the most important support roles. For an agency it is essential that a successful and skilled
person is able to function correctly. With respect to Amazon, robotics fill the large bags that
workers put but instead remove from the beginning as well as from the edge. In the absence of
these workers, the activity would end and render the business were unable satisfy demand. HRM
thus plays a major role in the proper implementation of operations leading to an improvement in
the corporation's efficiency and development.
Technological development: Technology is evolving quickly during the current time and has a
positively and negatively influence both on market functions and activities. The use of modern
robotic systems only takes place because of sophisticated technologies and still operates properly
due to various technical advancement.
It also lets companies gain a strategic edge on the markets and ensure sustainable growth in the
long run.
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Critical success factor: it is perceived to be one of the main drivers in rising growth and business
success. It involves a competitive benefit, consisting of standard and product variations. This
element has the conviction that every penny thinks & makes attempts to have outstanding value
for consumers, which contributes to loyalty and consumer aspirations (Choi, Wallace and Wang,
2018). Amazon is actually capable of promoting successful operations management, thanks to
which consumers are provided with consistency and time distribution. This allows and company
to build a chain brand picture that directly contributes to success and increase the market share.
CONCLUSION
It has been inferred from the aforementioned discussion, that organisational management
methods help a corporate organisation systematically and successfully execute processes and
activities. In turn, management system is committed to deliver reliable service to consumers who
are creating a brand reputation and enhancing a business object's performance. Software is
expected to involve when it allows a company decrease the challenges and raise the degree of
profitability accordingly. New technology can assist to improve inventory monitoring and
distribution, tracking and fulfilment services, enhance supply chain processes, etc. Both of which
would allow a company to boost both its productivity and income. The organisational control
practises used by robotics are related to several supporting roles. Following are the key functions
such as Organizational Infrastructure: both monitoring and planning practises are reported to
enable businesses to handle their costs correctly. With respect to Amazon, the robotics operating
in warehouses will work well since large sacs are distributed appropriately to workers due to
proper facilities. The business also helps to reduce the expense of recruiting workers and to
improve profits in a suitable way. All these functions are intended to contribute to the execution
and performance of activities which lead to greater market advancement. Infrastructure is
expected to play a vital role systemically in the delivery of activities because there would be a
pause in the execution of the work if this is not necessary.
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REFERENCES
Books & Journal
Agrawal, V.V., Atasu, A. and Van Wassenhove, L.N., 2019. OM Forum—New opportunities for
operations management research in sustainability. Manufacturing & Service Operations
Management, 21(1), pp.1-12.
Choi, T.M., Wallace, S.W. and Wang, Y., 2018. Big data analytics in operations
management. Production and Operations Management, 27(10), pp.1868-1883.
da Costa Cordeiro, W.L., Marques, J.A. and Gaspary, L.P., 2017. Data plane programmability
beyond openflow: Opportunities and challenges for network and service operations and
management. Journal of Network and Systems Management, 25(4), pp.784-818.
Daradkeh, M. and Moh'd Al-Dwairi, R., 2018. Self-service business intelligence adoption in
business enterprises: the effects of information quality, system quality, and analysis
quality. In Operations and Service Management: Concepts, Methodologies, Tools, and
Applications (pp. 1096-1118). IGI Global.
Engelsberger, M. and Greiner, T., 2018. Dynamic reconfiguration of service-oriented resources
in cyber–physical production systems by a process-independent approach with multiple
criteria and multiple resource management operations. Future Generation Computer
Systems, 88, pp.424-441.
Gao, F. and Su, X., 2018. Omnichannel service operations with online and offline self-order
technologies. Management Science, 64(8), pp.3595-3608.
Heizer, J., Render, B. and Munson, C., 2017. Principles of Operations Management:
Sustainability and Supply Chain Management (Global editon). Pearson.
Ivanov, D., Tsipoulanidis, A. and Schönberger, J., 2017. Global supply chain and operations
management. A decision-oriented introduction to the creation of value, 2.
Lee, H.L. and Tang, C.S., 2018. Socially and environmentally responsible value chain
innovations: New operations management research opportunities. Management
Science, 64(3), pp.983-996.
Russell, R.S. and Taylor, B.W., 2019. Operations and supply chain management. John Wiley &
Sons.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Tönnissen, S. and Teuteberg, F., 2020. Analysing the impact of blockchain-technology for
operations and supply chain management: An explanatory model drawn from multiple
case studies. International Journal of Information Management, 52, p.101953.
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