WEEK 1 Project
Operation management in Amazon
MGT3059 Operations Management
Operations Management is an activity to regulate and coordinate the use of resources in the form of human resources, tools, funds and materials, effectively and efficiently to create and add to the use of goods and services (Wisner, Leong & Tan, 2018).A large portion that must be the responsibility of this management is to become the main distributor or distributor of production results to consumers. They must ensure the product arrives within a certain time frame. Operations Management becomes important in an organization or business. There are three operational management objectives namely;
Acceptable goods is that the goods produced must be in accordance with the needs or desires of consumers. Both the amount, color, shape, quality, taste, mode and price.
On time is on time. In producing an item it must be on time. Starting from when it was done, when it was completed and until when it was distributed to consumers.
Economically, the goods produced must be economical. Economical here in the sense related to the price (price) must be affordable by consumers. “Most governments occur as part of a greater supply chain.
The supply chain is the system of industrial and service processes (often manifold organizations) that source one another from raw resources through manufacture to the final purchaser”( Schroeder, 2017). Operational management generally plays a role about strategic issues in determining "manufacturing" production plans as well as project management methods and the implementation of information technology network structures. On the other hand, they also do the following important things .The increase in the geographic coverage of delivery makes the goods of the online store accessible to customers even from the most remote settlements .
Previously, this required collaboration with several services, which increased the operational costs of the logistics, accounting and IT departments (Chan, Lacka, Yee & Lim, 2017). However, now the problem can be solved through cooperation with the delivery aggregator for online stores. Having concluded only one contract, the online store gets access to a full range of delivery methods with the maximum geographical coverage and optimal tariffs. And the buyer will not refuse to place an order due to the lack of delivery to his village or remote areas.
The Amazon’s COO task is to provide the customer at different stages of product selection and clearance with the maximum information about the conditions of payment, delivery and return. If the buyer cannot immediately understand how, when and where the order will be delivered, how much the delivery will cost, or if this requires waiting for the manager’s call back, the number of failures sharply increases. Also, the client’s transfer to the website of the transport company to calculate the delivery leads to refusals, where at the same time he will be asked to enter the weight of the purchased goods, their dimensions, etc. (Greasley, 2008).
What is the best way to disclose delivery options? Various widgets on the eCommerce website will give the client the necessary information, reducing the number of abandoned baskets and increasing conversion. Here are some examples of such widgets. At the purchase stage, when the user gets acquainted with the characteristics and price, you can also specify how much it will cost to deliver this particular product in various ways. This widget is convenient because the client does not need to proceed to check out in the basket to find out the delivery conditions.
Tracking deliveries in your system account will greatly simplify the work of the logistics department manager. Of particular note is the work with returns. There is no need to think about how, when and where to pick up goods not bought by customers, coordinate all steps with courier services. It is worth using tools to automatically calculate the cost and delivery time. The customer does not need to call the store and find out when he will receive his purchase. So the manager does not need to contact the client to inform how much the delivery will cost.
Chan, H. K., Lacka, E., Yee, R. W. Y., & Lim, M. K. (2017). The role of social media data in
operations and production management. International Journal of Production Research, 55(17), 5027–5036. https://doi-org.southuniversity.libproxy.edmc.edu/10.1080/00207543.2015.1053998
Greasley, A. (2008). Operations Management. Los Angeles: SAGE Publications Ltd. Retrieved
Wisner, J. D., Leong, G. K., & Tan, K. C. (2018). Principles of Supply Chain Management a
Balanced Approach (5th ed.). Cengage. ISBN: 9781337406499
Schroeder, R. G. (2017). Operations Management in the Supply Chain: Decisions and Cases (7th
ed.). McGraw-Hill College. ISBN: 9781260151954
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