Performance Evaluation of Amazon: A Case Study and Analysis

This report presents a case study on Amazon's performance evaluation. It explores various methods to assess Amazon's success, focusing on supply chain management, logistics, and financial metrics. The report discusses the application of the Supply Chain Council (SCC) model, logistic scoreboards, activity-based costing, and economic value added to evaluate Amazon's operational efficiency and financial performance. The analysis includes a review of key performance indicators (KPIs) such as cycle time, cost per shipment, and on-time delivery, providing a comprehensive overview of how Amazon's performance can be measured and improved. The report also references relevant academic sources to support its findings and recommendations.

Running head: INITIAL POST RESPONSE
INITIAL POST RESPONSE
Measure to evaluate company’s performance
A case study of Amazon
Name of the Student:
Name of the University:
Author Note:

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What measures would you use in a business like Amazon.com to evaluate the company’s
performance?
Amazon’s business model is highly depended on the supply chain management as the
competitive business strategy of the organisation is to deliver the products in the least possible
time to the consumers. The ‘Same Day Delivery’ or the ‘Drone Delivery’ are the supply chain
initiatives undertaken by Amazon. In order to evaluate the company’s performance, below
mentioned measures can be used:
1. Supply Chain Council SCOP Model:
i. Cycle time metrics can be used to calculate production cycle time and cash to
cash cycle
ii. The cost metrics help to evaluate cost per shipment and cost per warehouse pick
(Estampe et al., 2013).
iii. The service/quality metrics to measure defective products and on-time shipment.
2. Logistic Scoreboard:
i. Logistics financial performance measures that measures the expenses and the return
on the assets
ii. Logistics productivity measures that would calculate the number of orders shipped
per hour and the transport container utilisation
iii. The logistics cycle time measure that measures the in transit and order entry time
(Karim & Arif-Uz-Zaman, 2013).
3. Activity Based Costing:

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It is the method of breaking down the individual cost and estimating the resources
including time and cost. It is based on this cost the driving costs are rather calculated. This helps
in better productivity (Delen, Kuzey & Uyar, 2013).
4. Economic value added:
This method can be used to rectify the traditional mean of accounting. This is used to
measure the value added contribution of the enterprise along with the value of the stakeholders.
With this, better recommendations on the logistic approach can be made as well.

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References:
Delen, D., Kuzey, C., & Uyar, A. (2013). Measuring firm performance using financial ratios: A
decision tree approach. Expert Systems with Applications, 40(10), 3970-3983.
Estampe, D., Lamouri, S., Paris, J. L., & Brahim-Djelloul, S. (2013). A framework for analysing
supply chain performance evaluation models. International Journal of Production
Economics, 142(2), 247-258.
Karim, A., & Arif-Uz-Zaman, K. (2013). A methodology for effective implementation of lean
strategies and its performance evaluation in manufacturing organizations. Business
Process Management Journal, 19(1), 169-196.