|Type of paper:||Essay|
|Categories:||Leadership analysis Amazon Business management|
The writer attempts to elaborate on how the management of processes within a firm can be beneficial to a firm. The case study based on the chain management of Amazon Company addresses inventory management and how activities such as warehousing, delivery, and technology have contributed to the efficiency and the effectiveness of the business operations in the company. The author acknowledges that Amazon is fully committed to ensuring that its services are geared towards satisfying its customers by facilitating ease delivery of products through an online platform, and therefore, the firm has done tremendous steps towards providing services to the customers. Additionally, the writer notes, it is facing some challenges such as delayed service management, gives the recommendations.
The researcher argues that the inventory management system of Amazon Company as an efficient process, organized in a manner that the delivery process of an item requested through online takes limited time. The writer illustrates the measures that the company uses to reduce time wastage light bulb play a significant role in alerting the workers what has been ordered and where it is located while the crates on the conveyor belts are strategically positioned while the bar codes are matched with the order numbers and finally they are dispatched to customers through the shipment (Heizer, Render, & Griffin, 2014, pp. 468-469).
The author notes the company has been using product differentiation as a method of market segmentation. The researcher provides details on important of the strategy to the customers especially those with prime membership. The company uses the strategy as an indirect method for adjusting the prices (Kaplan, 2017). Does not elaborate on how the level of customer satisfaction is achieved using this price differentiation method especially from the nonmembers who pay extra charges.
Additionally, the author provides sufficient evidence that shows the efforts done by Amazon to improve the efficiency of delivery services by investing in the transport sector. Despite the fact that the company y has been using the third parties for logistic services it has pumped in more than 20, 000 vehicle, about 40 jets as a way of enhancing reliability during the delivery of goods to the customers (Mann, 2018). It is an indication that for an online business to thrive a reliable and fast means of transport is relevant. Additionally, their own transport means will help ease the high costs incurred when they hire transport services.
Moreover, the author explains how Amazon Company is using technology
In an attempt to cut down the operating costs involved. Use of the automated system reduce human labor and increase the accuracy of services (Morgan, 2018). Additionally, the writer explains the technological has supported inventory management.
The researcher notes that despite major advancements that Amazon company has made it's the attempt to achieve customer satisfaction, the firm is still facing some drawbacks that can affect its sustainability. One of the issues is the delayed services. The author gives an example of the Canadian customers who once experienced delayed as a result of postal strikes. The author recommends that Amazon should spread its latest delivery option strategy called "Amazon Day" that enables the prime members to state the day that they like their orders to be delivered (Blackley, 2018).
To sum it up, the writer has done comprehensive research to explain how Amazon company has been committed to facilitating an effective and efficient supply chain management. The author has also elaborated on various practices that the contributed to a positive impact on the supply chain process which includes, warehousing, Technology, transportation, and delivery options, In addition, the researcher has explained that delayed deliveries as an of the major challenges facing the customers e and have provided a logical recommendation.
Heizer, J., Render, B., & Griffin, P. (2014). Operations Management Canadian Edition. Toronto:
Kaplan, D. A. (2017, June 6). The real cost of e-commerce logistics. Retrieved from Supply Chain Dive: https://www.supplychaindive.com/news/amazon-effect-logistics-cost-delivery/444138/Caudell, D. (2017, September 27)
Amazon's Inventory Management Secrets. Retrieved from RF Gen: https://www.rfgen.com/blog/bid/246924/amazon-s-inventory-management-secrets
Morgan, B. (2018, July 16). How Amazon Has Reorganized Around Artificial Intelligence And Machine Learning. Retrieved from Forbes: https://www.forbes.com/sites/blakemorgan/2018/07/16/how-amazon-has-re-organized-around-artificial-intelligence-and-machine-learning/#4d66b8a57361
Mann, D. A. (2018, September 18). Should UPS be concerned about Amazon's order of 20,000 vans? Retrieved from CNBC: https://www.cnbc.com/2018/09/18/should-ups-be-concerned-about-amazons-order-of-20000-vans.html
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