Amazon's Operations Strategy: Supply Chain & Quality Management Review

This report provides an analysis of Amazon's operations management, supply chain management, and quality management processes. It begins with an introduction to Amazon, highlighting the challenges it faces in these areas. The report reviews Amazon's operations strategy, exploring both current and long-term solutions, considering internal and external influences. It also examines supply chain management challenges and their impact on the operations strategy. The internal analysis uses a PESTEL framework to assess political, economic, social, technological, environmental, and legal factors, while the external analysis focuses on Amazon's strengths. The report further discusses lean management principles and quality management tools used by Amazon. Part 2 outlines a project objective and scope, including organizational objectives, project assumptions, roles, responsibilities, timeline, Gantt chart, risk management strategies, business process diagrams, and project funding.

Running Head: AMAZON
Amazon
Name of the Student
Name of the University
Author Note

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Part 1................................................................................................................................................2
Introduction......................................................................................................................................2
Design of Goods and Services.....................................................................................................2
Quality management....................................................................................................................3
Process and capacity design.........................................................................................................4
Location strategy.........................................................................................................................4
Supply Chain management..........................................................................................................4
Internal analysis...........................................................................................................................6
External analysis..........................................................................................................................8
Supply Chain Management..........................................................................................................8
Lean Management.....................................................................................................................11
Quality management tools.............................................................................................................14
PART 2..........................................................................................................................................17
Project objective............................................................................................................................17
Organizational Objective...............................................................................................................17
Project scope..................................................................................................................................18
Project assumption.........................................................................................................................18
Scope Assumption:........................................................................................................................19
Project roles and the responsibilities.............................................................................................19
Time line and Gantt Chart.............................................................................................................20
Risk Management..........................................................................................................................24
Business process diagram..........................................................................................................26
Ways to mitigate the risks..............................................................................................................27
Stakeholder management...............................................................................................................27
Business process diagram..........................................................................................................28
Project Funding..............................................................................................................................29
Reference.......................................................................................................................................31

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Part 1
Introduction
Amazon has been one of the leading brands that deals with the processing of the goods
related to the e- commerce. The operational manager is completely responsible for the success of
the company. The operational management is directly proportionately efficient for the
functioning of the business. This deals with the fact that the efficiency that Amazon has in the
strategically processing of the functionality is due to proficiency set of managers who have been
taking seats of operational managers in Amazon. Amazon is an example of the growth in
technology had the implementation that the organizations are making for the growth of their
company as the proceeding deals with the fact that usage of the upgraded technologies are in use.
This ensures the fact that the data incurring of the project will be due to the e-commerce business
platform. Continuous improvement as an organization has helped organizations to reach its peak.
This continuous growth was the reason due to the fact that the processing of the data
management is done through the e commerce technology the accuracy of the data management is
maintained in the proceeding of the business.
Amazon’s mix products marketing is also the case of the supreme framework that deals
with the fact that the efficiency of the data management is maintained. The basic decision
making aspects that lead to the success of the organization are as follows: -
Design of Goods and Services: The design of the servicing of organization is very important is
it decides the major structural framework of the organization. The efficiency of an organization
is directly related to the structure framework of the organization. Searching of the clients for

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organizations also acts as the processing of the data structure of the organization. The framework
when efficiently combined with the technologies that are recently updated the efficiency of the
entire organization reaches new level. The retailing of services ensures the fact that the retail
customers are targeted due to the processing of the products.
Quality management: The major purpose of maintaining the quality management efficiently is
that it supports the quality of the product that is directly delivered to the clients of organization.
This fact leads to the data procedural functioning that the clients of the organization will become
the loyal clients of the organization only if the products that are supplied to them are good in
quality. In case the products that are supplied to the clients are not good in quality the brand
loyalty of the client does not remain as firm as it would have stayed if the products that were
provided to him were of the expected quality. This fact ensures that the quality if the product acts
as the major criteria for maintaining the client base. Hence, the processing of the quality
management group plays a huge role in the success of the organization.
The challenges that the organization faces for the proceeding of the functionality are as follows: -
Trust issues: the major problem is that the trust issues of the data management deals with the
proceeding of the trust issues regarding the trust issues of the organization. This fact takes into
specification that the clients of the organization cannot trust the proceeding of the products. This
fact ensures the fact that the quality of the product has been the major concern for the processing
of the products. The quality of the product that is being supplied has the major concern regarding
the quality of the product, as the products that are ordered by the clients are not hand tested.
Quality: The major issues regarding the quality aspect of the products are as follows. This sense
the fact that the data management of the quality management deals with the fact that the

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understanding of the quality of each and every product present in the e commerce business
platform. This ensures the fact that the strategically accessing of the quality of the products. This
ensures that the quality access by the official website must be taken into concern.
Process and capacity design: the main function of the process design committee is
through set the path of navigation during the processing the dealing with the clients. This fact
ensures that the data that are used for the functionality of the organization is directly dependent
on the processing of the process design. The ease of navigation of the Amazon also gives the
organization a push for the procession of the project. The project helps in reconciling with the
fact that the efficiency of the organization as well as the betterment of the organization is directly
proportional to the success of the organization. The data base storage has been increased due to
the fact that the large number of the storage of the data regarding the ordering of the products.
This fact will take into consideration as the procession as the organization has been expanding,
the database of the organization must also expand and the data base of the organization must also
increase its efficiency.
Location strategy: the access to the market has been acting as the major reason for the
marketing of the products that are produced for the procedural access of the data. This fact
ensures the fact that the data base management has been acting as the processing of the
warehouse for retaining the position of the organization that the organization is well maintained.
This ensures the fact that the data privacy of the clients i maintained with proper efficiency. This
processing of the data regarding the Amazon has been of great value.
Supply Chain management: supply chain management has been playing a very important role
in the proceeding of the management. This ensures the fact that the data prosecution of the

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clients are one f the most important feature if the Amazon. This ensures that the supply of the
products that are ordered by the clients of the organization. This is the most efficient chronology
that looks after the strategically management regarding the issue of the delivering of the product.
This ensures the fact that the purpose of the processing of the order disposal is one of the most
important fact for the transmission of the products.
The challenges that the organization faces and the solutions to the challenges are as follows: -
 Fierce competition: the major aspect of competition has been the major issue for the
proficiency of the product. This ensures the fact that the competition has been acting as
the major challenge for the purposing of the data. Te competition from other online e
commerce business has been acting as the proficiency of the methodology from the
organization. This ensures the fact that the processing of the product is similar in those e
commerce business brands as well. The annual sales of Amazon is hampered by the
processing of the sales that occurred in the processing of the other e commerce business
platforms. The major weapon against these e commerce companies can be that Amazon
is already an established brand and the good will of the organization is already present.
This ensures the fact that the processing of the products to a larger location has been one
of the major plus point for the Amazon. This aspect helps in gaining an edge over the
proficiency of the organization over other e commerce business organization.
 Catalog system: this system ensures that the sellers themselves must create the catalogue
system rather than using the catalogue provided by the organization. This is due to the
fact that the innovation of the catalogue and the produces are maintained during the
process of termination. This process ensures the fact that the data analysis of the

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projection of the data analysis will help in setting up of the audience by the sellers which
will turn up in higher sales for the organization
 Performance target: According to this future, so many products that are for sold by
different seller are defective in nature. This reduces the clients to trust the organization
and the process degrades a lot of clients from the organization. This is the place where
the performance needs to be checked. This ensures the fact that the data evaluation of the
organization must check the fact that there is a lowering of the entire process. This
lowering of the processing of the goods that are faulty in nature. This will ensure that the
trust of the clients of the organization gets restored
Internal analysis:
P: the extension factor that leads to the expansion of Amazon requires much needed political
compliances to deal with the processing of the data, which will ensure that the allowance and
permission from the government is taken. This will ensure free and safe transaction of ten
businesses in different parts of the world. Hence knowing the legislative laws of different part of
the world ensures the fact that the transaction stays safe and Amazon stays in the good book of
the organization` staying in the good book of the government ensure the goodwill of the global
audience.
E: the economy factor of Amazon is completely dependent on the currency of the country that
the dealing is going on. This ensures the fact that the currency of the country helps in paying of
the bills that the clients has incurred during the buying of the products. The bills are to be paid in
the currency in which the client resides in. the conversion of the price of the product with respect
to the country is done by the organization itself. In case of setting the price of the product that

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ensures the fact that the pricing of the product is performed accurately and neither the client nor
the organization suffers any loss.
S: the social effect of the termination of the process includes the effect that the processing of
Amazon leads to the fact that the sociological factors regarding the processing of the project
leads to the transaction of project deals with people of different social background. This ensures
the fact that the procession of the people of different aspect of their religions. All the people of
all kind of social environment must be satisfied in order to continue the business globally
without any kind of controversies and having the goodwill of the entire mass.
T: the technological factor of the processing of the organization acts to be a very important fact
for the processing of Amazon. As it is completely dependent on the data base of the project. this
issue takes into consideration that the data base of the projection of the task.
E: Environmental factors include both the internal and the external factors of the processing of
the project. This ensures the fact that the data management will be done by the employees of
Amazon as well as the clients of the organization. This fact helps in maintaining proper relation
between the internal and the external stakeholders of the organization.
L: the legal factors are the major issues that might act as the processing of the data in a much
efficient process. This process will seek to the methodology that will include the following if the
laws of the local government. As the process is international the process needs to focus on the
legal aspect of the places where the processing of the job is to be legal in nature.

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External analysis
S:The strength of Amazon is that the organization is already well established and the processing
of Amazon is already in the top notch and the data management is performed and the processing
of the transcription is done with full efficiency of the product. This projection ensures the fact
that the organization stays in the top position of the industry.
W: the trust of the clients is very vulnerable in nature. This is the only issue that acts as the
weakness of Amazon. Amazon enjoys the trust of clients, but the rising of the trust issue can turn
in a reverse way. In case the trust of the clients are lost, the entire business will run in loss.
O: the opportunity of the growth of Amazon is very high due to the reason that there has been a
growth in trust issue on the online organization and the platform of the e commerce business has
been flourishing
T: Amazon also faces the threats from the organizations that have been competing with this
organization. This ensures the fact that the competition among the other e commerce
organization. This cuts the income of the organization in a very high rate.
Supply Chain Management
The major supply chain management issues are as follows: -
 Supplier mistake- the mistake that is committed due to the processing of the delivery
person acts as the major supply chain mistake. In case of pre order the entire amount
is paid and if there is a mistake in the delivery address, the person who has not
ordered for the same will receive the product. This will ensures the fact that the
person who has already paid for the product do not receive the desired order and the
money goes in vein

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 Inefficiency in the process- the delivering of the product that deals with the
processing of the delivering of the product will take into consideration the fact that
the data management of the order of the clients are not stored properly in the data
base and the data regarding the delivery of the products are assigned.
 Running out of stock includes the fact that the data processing will lead to the fact
that the flow of orders are more than the quantity available in the stock. This leads to
the fact that the clients do not get the required products due to lack of supply of the
product.
 Sales vs Inventory: this is a major reason of the conflict between the sales of the
product and the barrier that is provided due to the fact that the inventory lags. This
ensures the fact that the processing of the products with least innovations made in the
processing will be done with the progressing of the product. The demand of the
products that ensure the fact that the innovations must be brought in to resolve the
saturation problem
 Overselling: the overselling of the process includes the problem that the products are
sold faster than the supply of the product. This is the reason that the processing of the
product over selling. This fact is the reason that the product goes out of stock.
 Improper description: the improper description of the product leads to the fact that
the client might get deceived due to other fact that the liking of the product changes
with the photograph of the image. This ensures the fact that the procession of the data
management of the records that might take place is due to the lack of citation of the
products that are present in a very fake manner and the products are shown in a very
flamboyant way. This makes the clients fall for the products, which is actually not

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true, and the machine learning process is one of the most useful ways of
implementing the predictive analysis.
The probable process of supply management tools that must be used for the efficient processing
of the organization are as follows: -
 Usage of predictive analytics and machine learning: If the predictive analysis
methodology is used for the prosecution of the process then the idea of the requirement of
the processing off the products will be estimated and with the supply of the products can
be made henceforth. This process ensures that out of stock of the products can be avoided
and the clients can stay satisfied
 Efficient delivering technologies: the technologies that are used for the delivery of the
product works in the old platform. The fact that the new platform of the delivering the
project ensures the fact that the efficiency in the delivery of the product can be attained.
Leading to the higher efficiency of the delivery of the goods acts to be the major reason
behind the processing of the good. This fact ensures that the delivery of goods will in turn
be delivered to the clients and no problem in the delivery process f the organization will
take place.
 Usage of corporate cards: in the time of digitalization the main mode of payment for the
products are by the methods instilling the process of cashless methods. This factor
ensures that the cashless methods are being introduced in the processing of buying the
products. This ensures the terminology that the acceptance of standard card systems must
be present. This fact leads to the terminology that will take care of the advancement in
the level of payment. This factor also helps in global payment.

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Lean Management
Lean management is continuously in motion rather than a framed picture hanging in a wall.
Shigeo Shingo, Taiichi Ohno and some more, introduced it. The implementation of this took
over 40 years. It was introduced for reduction of the time required to change the die during the
printing process. This effort led into reduction of the in process inventory. This process later on
became just-in time inventory management. Implementation of this technique resulted in lesser
use of warehouse space, forklifts and unnecessary space and many more. This makes the flow of
work interruption free as well controls the waste generated after the end of the process. Lean
means elimination of the waste produced. The main aim of lean is to continuously improve the
work process. For improving the work of the die press as well as reduce the amount of waste
after the work is done, Shingo gave no instruction to the workers (Hajmohammad, Vachon and
Klassen, 2013). Though he knew about the process and the ways of implementing it for effective
results. He told the workers to think. He challenges the workers in the factory to innovate and
extract ways in order to speed up the process and eliminating useless activities. The workers who
used to operate the press as well as changed dies worked together as a team and they were
successful in solving problems and bring up improvements in the entire process. The workers,
who were front line employees, were in real the greatest expertise in their fields (Bhasin, 2015).
They experimented, examined the data and extracted knowledge from the facts. The actual
essence of lean management is to improve the working process with the help of the workers who
actually know about the work. Lean management can be beneficial for organizations in many
ways. This lean management gives workers the right to explore something and bring up
innovations in the working process. This would encourage the workers and make them feel that
they are valued by the organization. This in turn would increase work satisfaction of
theemployees and make them dedicate more to their work.