SCM430 Discussion Board 2
Supply Chain in Amazonas
Supply Chain in Amazonas
Amazon Company is a multinational organization that is located in America, and it focuses on digital streaming, artificial intelligence, and e-commerce. The company is regarded as one of the big four companies since the operations of the company are the ones that result in success. One of the company’s operations that are considered is the supply chain used in the organization. The reason why the company is selected in this work is because of the strategy that is used, effectiveness and need for the changes in the supply chain (Wible, et al., 2014). The plan for the organization begins with sending of inventory, receiving the stock and the customers then order products. The ordered products are then picked, packed, and shipped, and customer service is enhanced, and customer returns are accepted for improvement. Also, the reason why Amazon is selected for the discussion is that the supply chain of this company is said to be the most innovative one that helps in meeting the technological needs of the customers.
According to the article by Steve Banker, the supply chain of Amazon is made up of floating warehouses and use drones for delivering products. Relay is another innovative made by the Amazon’s company that ensures that the trios made to the warehouses are faster and efficient in which information can be transferred using the app which provides visibility of the location of the deliveries and hence preparation of arrivals are done (Patel, et al., 2013). Manual processes that are tiring and time consuming are avoided through the use of the relay and hence, improving the services of the organization. The Amazon organization offers services within the country and outside the country, and the issue of the supply chain is critical, ensuring that services are provided on time.
The supply chain is a critical factor in the growth of the business, and hence, there is a need for the changes to take place. One of the reasons for changing the supply chain should change is because of the stiff competition that is faced by the Amazons Company. Some of the competitors of the Amazons are Family Dollar, Big Lots and Walmart Inc. to overcome the competition, the management of the organization need to change the supply chain to be able to achieve the goals of the company. The rapid growth of the economy has increased the number of customers depending on the services of Amazon Company (Steve, et al., 2018). Due to the increment, improved services are needed, and to meet the demands of the customers, the changes in the supply chain are highly required.
The changes in the supply chain are focused on the technological changes that are efficient in meeting the goals of the company, which are based on the revenue of the company. Improved services to the customers are another reason why the supply chain of the Amazonas Company should change. Improved supply chain ensures that the products and services are available at the stores when needed by the customers. Availability of products at the customers’ disposal is a factor that builds the loyalty of the customers and hence helping the Amazons to gain competitive advantages compared to other companies (Patel, et al., 2013). Based on the reasons stated, the Amazons Company management should ensure that there are changes in the supply chain to improve the services to the customers. The supply chain changes that are suggested should be based on the technological changes because the rapid growth has resulted in innovations that need to be accommodated by the Company to achieve the objectives of the organization. The Amazons Company provides services to America and to other countries in the world and the need to change the supply chain strategy to reach all the customers.
Patel, P. C., Azadegan, A., & Ellram, L. M. (2013). The effects of strategic and structural supply chain orientation on operational and customer‐focused performance. Decision Sciences, 44(4), 713-753.
Steve B., Chris C., &Clint R.,(2018). The Amazon Chain: The Most Innovative in the World? retrieved from: https://logisticsviewpoints.com/2018/01/08/amazon-supply-chain-innovative-world/
Wible, B., Mervis, J., & Wigginton, N. S. (2014). Rethinking the global supply chain.
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