LB5230: An Analysis of Amazon's Supply Chain Management

This report provides a comprehensive analysis of Amazon's supply chain management, focusing on its global logistics, supply chain channels, and sustainability practices. The analysis begins with an overview of Amazon as a company, highlighting its evolution from an online bookstore to a global e-commerce giant. It then delves into Amazon's supply chain management, examining its strategies for sourcing, warehousing, distribution, and delivery, including the use of advanced technologies and third-party logistics. The report also explores the link between Amazon's activities and the theories covered in LB5230, specifically focusing on the value chain, including inbound and outbound logistics, operations, marketing, and support activities such as infrastructure, human resource management, technology, and procurement. Furthermore, the report examines Amazon's sustainability initiatives throughout its value chain, including renewable energy goals and transportation efficiencies. The conclusion summarizes the key findings, emphasizing the importance of effective supply chain management for Amazon's success and its ability to meet customer needs efficiently.

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Amazon Company
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Contents
Introduction......................................................................................................................................2
Overview of the company................................................................................................................2
Supply chain management from source to the customer.................................................................3
The link between company activities and LB5230 Theories...........................................................4
The value chain of the company..................................................................................................4
Amazon primary activities.......................................................................................................4
Amazon Support activities.......................................................................................................6
Sustainability through the value chain.............................................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

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Introduction
In the current era, supply chain management is considered as most vital element for running
operations of the business across the global market. The companies are performing their
operations so that they can meet the growing needs of the customers and also attain a high profit.
The purpose of the report is to determine and evaluate company global logistics, channels of
supply chain and the sustainability throughout the value channel all the way to end-users which
are customers. It is considered that supply chain is vital for all across the global companies due
to which the analysis of the Amazon, an American multinational technology company based in
Seattle has been done. Further, study analyses the link between the activities of the company as
well as LB5230 theories. This analysis will throw the light on the operation of the company and
will reflect the way the company is capable enough to meet the operations.
Overview of the company
Amazon is an American international technology business that is founded in Seattle that
emphasis on e-commerce, cloud computing, digital streaming, and artificial intelligence. The
company came into existence in July 1994 by Jeff Bezos in Washington. In the beginning,
business started as an online bazaar for the books which allow the customers to get the delivery
at home by booking it online. Gradually with the change in time, the company expanded the
business and they started to sell electronics, software, video games, apparel, food, toys, and
many others. In the year 2015, the company surpassed Wal-Mart as the greatest appreciated
retailer in US by market capitalization (Amazon, 2020). The company is effectively meeting the
needs of the customers on time which is possible with the effective distribution of the product.

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Supply chain management from source to the customer
Amazon Company is linked for maintaining the effectiveness of their supply chain. The
company has their own step up for their SCM system through which they can attain the needs of
the customers by offering them the delivery of products in 2 days after placing the orders
(Copacino, 2019). In the research, it has been determined that Amazon has transformed face of
the trade with usage of the bold supply chain policies with the placement of advanced expertise.
Amazon business witnessed that their history is growing and relentless innovations. The
company is considered as one of the major choices for customers for the quick and efficient
SCM (Hugos, 2018). The company supply shows that they use a combination of the
sophisticated information technology, multi-tier inventory management, warehouse include
widespread network and outstanding transportation which makes the company supply chain
stronger and competent among the companies across world.
The company provide the one-hour or the similar day delivery which is practically probable
because of their high dependence on their own logistics which means that there are perks of
having the own-supply chain system. In addition to this, across the world Amazon Company is
depending on the logistic services of the third party which deliver on time to the customers and
offering them delight experience (Christopher, 2016). Amazon Company makes use of the push-
pull strategy for the achievement of supply chain. It is maintaining its warehouse that is
strategically placed as well as stocked, moving faster and quicker to key metropolitan places and
city centres. Amazon business makes use of pure push approach for products its stores among the
warehouses, forecasting demand for the particular region and many others.

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The link between company activities and LB5230 Theories
In the research, it has been mentioned that LB5230 Theories contains managing the strategies
resources as well as operations during strategic planning and marketing (Mangan & Lalwani,
2016). In this section, the discussion under the broad umbrella of the supply chain for the global
company is done which is Amazon. The company is capable enough to sell their services which
include America, European, Asia pacific Australia and many others. There is a discussion about
the different about the LB5230 Theories which is linked with the company.
The value chain of the company
In the research, it has been witnessed that value chain is an essential concept which includes the
discussion of the different supply chain activities of the business in an effective manner. The
primary activities of the company include outbound logistics, inbound logistics, sales as well as
services, operations and marketing (Tardi, 2020). On the secondary activities which are
considered as procurement, technological development, human resource as well as infrastructure.
Amazon primary activities
Inbound logistics
In research, it has been witnessed that Amazon doesn’t have any sort of the long-term
agreements or the arrangements with the sellers with the motive to promise presence of the
merchandise with the specified terms of expenditures or delay of credit limits (Fredendall & Hill,
2016). Fulfilment by Amazon (FBA) is majorly associated with foundation of company inbound
logistics that is retained retail company. The vendors of the company are allowed FBA by
reflecting their inventory in the fulfilment centres. The logistics services of the company are their
strengths and the company make use of the logistics beyond point to attend Amazon Marketplace

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which is beginning from business that are providing the different logistic facilities to others. For
instance; Beijing Century Joyo Courier service that is considered as the subsidiary listed with the
administration as one of the ocean shipping providers.
Operation of Amazon
The operations of the company show the places where the company offer the services and
conduct their business operations. In the international market, the operations of the company are
increasing which is possible with an effective supply chain as it allows them to attain the needs
of the customers. The international sales of the company increased by 24% and 23% in the year
2016 and 2017 respectively while comparing it with the different years. The company also
performs its operations in the Amazon Web Services (AWS) that deals with the different
segments.
Outbound logistics
Amazon Company majorly lies on services of overnight distribution operations like UPS, FedEx,
and TNT. The business makes use of the different modes for delivering their goods with the help
of 20 Boeing 767 freighters in an effort to start with the new business of the delivery
(Dudovskiy, 2018). In the research, it has been found that the amazon outbound logistics also
include the extensive utilization of the treasure trucks which helps them to provide the services
to end-users on time.
Amazon marketing and sales
Marketing and sales activities are considered as one of the essential activities of the value. The
company has an annual marketing expenditure that is growing from the past few years. These

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activities assist Amazon Company to deal with their competitors present in the market and also
contribute to improve the sale of products. The company marketing message takes possibilities
of biggest identification of the goods as well as services, rapid service of the goods and other
bigger services to the customers present in the global market (Dubey et al, 2017). Amazon
Company utilizes the different channels of marketing communication through which they can
promote their products or services. These marketing communication elements include
advertisement, sales promotion, public relations, and many others.
Amazon service
Service of the company is essential which include services related to the pre-purchase and post-
purchase of the products. The company offer exceptional services through which they can
generate value. Amazon has selling coaches programs which alter the seller for the different
opportunities which helps them to be competitive across the market.
Amazon Support activities
Firm infrastructure
The infrastructure of the firm matters a lot for Amazon as they are they maintain the technology
that helps them to perform all the primary activities (Fredendall & Hill, 2016). The company has
installed its quality management system that provides supports to the entire operations.
Human resource management
Human resource management is considered as one of vital element when it comes to the
management of the resources. Amazon Company need effective human resource management as
it helps them to perform the entire operations (Genovese, Acquaye, Figueroa & Koh, 2017). The

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company hire talented people with the formation of sustainable operating the cash flow as well
as the risk mitigation. The research reflects that the company has a dedicated team who ensure
the same.
Technology
The technology is considered as one of the major factors that contribute in improving the
operations and offering the support to the major or primary activities of business. The supply
chain of Amazon Company consists of the technology that can be understood from points like
drones and robots. The company distribute the products which are outbound logistics by using
drones and robots (Leblanc, 2019). These are considered as the automation solutions that allow
the company to pick and pack the order and deliver the same to their clients. The technology
assists the company to meet the delivery on time as well as for the staffing costs. It has been
found that free funds for making the investment in enhancing the other supply chain areas (Seller
Nexus, 2020).
Procurement
The procurement of the products is considered as one of the major element without which the
company will not be able to complete their entire operations. In the research, this has been found
that there is a vast number of the vertically integrated supplier that allows products to be
available at the warehouses (Genovese, Acquaye, Figueroa & Koh, 2017). It has been evaluated
that there is a wide number of sellers who are willing to get in touch with the Amazon Company
as they are aware of the fact that they will be able to provide the best sale which is the source of
profit for them.

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Sustainability through the value chain
The sustainable value chain leads to the major influence on the system of the food through the
improvement of the economic practices of sustainability which allows offers the value to the
stakeholders. It has been found that Amazon is promising is to attain 80% of the renewable
energy by the end of 2024 as well as the 100% renewable energy by the end of 2030 (Amazon,
2020). Along with this, they are further planning for the net-zero carbon by the end of 2024. In
addition to this, transportation is every efficient enough as it offers the benefits in sustainability
which is possible with the help of the fewer greenhouse emissions. Along with this, packaging
efficiencies can contribute in the sustainability of the value chain. The implementation of the
technology helps the company to manage the sustainable practice which is possible with the help
of their supply chain (Murray, 2018). The team of the sustainability team can contribute in
setting the goals of ambitious related to renewable energy. The company has introduced the
largest wind farm in Texas that helps in the sustainable practice of more than 1 million
megawatt-hours of clean energy.
Conclusion
At the end of the report, this is summarized that supply chain management is one of the essential
operations of the company. The company that has been selected for the analysis is Amazon who
is globally operating and managing the supply of the products across the world. The management
of the logistics is done effectively by the company through which they can meet the needs of the
customers. In addition to this, an analysis of the connection between the activities as well as
LB5230 theories related to the value chain. The value chain of the Amazon Company has been
done with primary activities and secondary activities. The analysis of the amazon value chain is

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done which shows the primary and support activities. In addition, sustainability through the
value chain of the Amazon Company has been done which shows that they are contributing to
their operations.

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References
Amazon. (2020). Our Company. Retrieved from: https://www.aboutamazon.in/?
utm_source=gateway&utm_medium=footer
Amazon. (2020). Sustainability. Retrieved from: https://www.aboutamazon.com/sustainability
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Copacino, W. C. (2019). Supply chain management: The basics and beyond. Routledge.
Dubey, R., Gunasekaran, A., Papadopoulos, T., Childe, S. J., Shibin, K. T., & Wamba, S. F.
(2017). Sustainable supply chain management: framework and further research
directions. Journal of Cleaner Production, 142, 1119-1130.
Dudovskiy, J. (2018). Amazon Value Chain Analysis. Retrieved from: https://research-
methodology.net/amazon-value-chain-analysis/
Fredendall, L. D., & Hill, E. (2016). Basics of supply chain management. CRC Press.
Genovese, A., Acquaye, A. A., Figueroa, A., & Koh, S. L. (2017). Sustainable supply chain
management and the transition towards a circular economy: Evidence and some
applications. Omega, 66, 344-357.
Hugos, M. H. (2018). Essentials of supply chain management. John Wiley & Sons.
Leblanc, R. (2019) How Amazon Is Changing Supply Chain Management. Retrieved from:
https://www.thebalancesmb.com/how-amazon-is-changing-supply-chain-management-
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Mangan, J., & Lalwani, C. L. (2016). Global logistics and supply chain management. John
Wiley & Sons.
Murray, T. (2018). Amazon's Big Opportunity: Transparency In Sustainability. Retrieved from:
https://www.forbes.com/sites/edfenergyexchange/2018/04/02/amazons-big-opportunity-
transparency-in-sustainability/#6663f8d17c50
Seller Nexus. (2020). Amazon Supply Chain Strategy. Retrieved from:
https://sellernexus.com/amazon-supply-chain
Tardi, C. (2020). Value Chain. Retrieved from:
https://www.investopedia.com/terms/v/valuechain.asp