Having created the ultimate model of catering to consumers’ every need, Amazon has become the staple of a successful retail company. On the surface, Amazon’s triumph is easily understandable; however, delving into the specifics of Amazon’s performance will show that the company has developed a rather subtle and unique competitive advantage. Represented by its inimitable supply chain, the specified advantage has allowed Amazon to thrive in a setting marked by tremendous competition.
Sales and Operations Planning in Supply Chain Integration at Amazon
What makes Amazon particularly special is the company’s ability to introduce the mechanisms that allow for seamless transitions between its different operations d nth integration of tools for promoting cohesion and coordination of actions within its SCM. The company’s sales and operation planning framework offers a particularly effective tool for aligning the core sales-related processes with the rest of the activities within the frim (Bharadwaj, 2019). Namely, with the help of consistent information flow, the management of sales and operations planning allows the organization to meet its target customs’ needs particularly accurately (Bharadwaj, 2019). As a result, the levels of customer satisfaction grow consistently.
What Would Amazon’s Medium- and Long-Term Forecast Inform the Operations Management Department?
Amazon’s unique approach to sales and operation planning also allows the company to coordinate the performance of its operations department. Specifically, with the help of the sales and operation planning, the company can predict its buyers’ actions and changes in their behaviors within the context of the target market with a sufficient amount of precision (Bharadwaj, 2019). As a result, potential alterations in customers’ behaviors and demands are identified, and the relevant data is delivered to the operations management department so that respective adjustments could be made. Consequently, the company improves the quality of its performance consistently, adjusting to the ever-changing market demands and responding promptly to the slightest changes in customers’ attitudes and behaviors (Bharadwaj, 2019).
How Logistics, Transportation Modes, and Warehouse Locations Impact Amazon’s Competitiveness
Another factor that has been contributing extensively to Amazon’s competitiveness in the global market, its unique approach to logistics and especially the development of infrastructure for the transportation of products and essential resources, has increased Amazon’s competitiveness tremendously. Particularly, Amazon selects the transportation options that are beneficial for each target environment individually, which allows maximizing the company’s performance and keeping its customers satisfied worldwide (Rodrugue, 2020). For instance, in India, Amazon has been making exceptionally efficient use of the local railroad transportation options, which has led to an increase in the levels of fulfillment (Rodrugue, 2020). Similarly, warehouse locations have been defining Amazon’ performance rates and overall efficacy in the markets of its choice.
How Global Sourcing and Procurement Impact the Overall Effectiveness of the Supply Chain?
The focus on the globalized approach to sourcing and procurement has also allowed Amazon to thrive in the target economic setting quickly. Namely, the use of the integrated supply chain management allows coordinating and aligning all of the processes within Amazon’s supply chain (Rashad & Nedelko, 2020). In turn, global sourcing and procurement informs the rest of the processes within Amazon’s supply chain, updating the relevant task management stages so that they could correspond to the latest trends observed within the target market (Urzedo et al., 2020). Specifically, the use of global sourcing allows Amazon to make intelligent decisions within its supply chain and the increase in the number of customs (Rashad & Nedelko, 2020). In fact, the specified phenomenon has led to the development of the so-called “Amazon effect,” which scan be summarized as customers developing the propensity toward online buying, thus, leaving local malls and physical shops deserted (Rashad & Nedelko, 2020).
What the Benefits and Challenges That Have Occurred When Outsourcing Logistic and Other Functions Are
Due to the rapid increase in its influence and overall performance, Amazon has been seeking opportunities for outsourcing some of its key SCM-related processes. The attempts at outsourcing logistic and the related functions have led to rather positive result involving active knowledge sharing and the opportunity to adjust the logistics process to the specifics of the local infrastructure, with which Amazon may not be as familiar as a local outsourced organization (Rashad & Nedelko, 2020). Therefore, the use of outsourcing in SCM has helped Amazon to address customer-specific needs and remain flexible when approaching unique infrastructures within specific communities.
How Amazon Has Successfully Leveraged E-Commerce Strategies to Promote Supply Chain Integration and Boost Sales and Growth for the Organization
Representing a successful attempt at helping businesses transition to the context of the digital market, Amazon has utilized quite a range of strategies for keeping its competitiveness rates high and maintaining its competitive advantage over other organizations. Amazon’s quick foray into the digital market and its role of a pioneer in exploring the environment of e-commerce have helped the company significantly in capturing new audiences and becoming a leader in the e-commerce area.
Which Strategies Have Been Particularly Effective and Why
The focus on building a global network in which suppliers, distributors, and other participants of Amazon’ SCM processes can be considered one of the most effective strategies. Due to the emphasis on the connection between the key process within the company, Amazon managed to tweak its e-commerce approaches accordingly with every new change occurring in the global market setting. As a result, Amazon has remained relevant despite the highly changeable nature of the global economy.
Do You Feel That Amazon Sets an Example for Other Companies to Model Regarding Supply Chain Integration?
Overall, Amazon deserves to be regarded as a role model in managing a digital supply chain. By incorporating innovative solutions and being brave enough to experiment with the approaches that were not tested yet at the time, Amazon has managed to create a framework for a flawless functioning of its supply chain. Moreover, the company has retained the flexibility needed to respond to market changes promptly and adjust its strategies accordingly.
How Conscious Capitalism and a Christian Worldview Would Impact Amazon’s Supply Chain Integration
Being a rather recent development, the notion of conscious capitalism has been gaining quite a traction since the need to seek sustainable methods of managing supply chains and addressing customers’ needs has recently experienced resurgence. Therefore, as a manufacturing giant, Amazon has been affected deeply by the risks in the concept coconscious capitalism. sHGowervfer, the described phenomenon is unlikely to introduce significant changes to Amazon’s supply chain since the latter has been undergoing major changes (Ioris, 2019). Similarly, the Christian perspective, particularly, the values of responsibility and nonmaleficence should be addressed as important discoveries made when examining the opportunities for the organization. Similarly, the Christian worldview would shape Amazon’s performance to an extent, causing the company to accept the values that are typically associated with Christianity. Specifically, the importance of collaboration across the supply chain would be enhanced if Amazon supported other Christian perspectives and values.
Due to its unique supply chain model an especially its philosophy of fulfilment, Amazon has garnered customers’ loyalty globally. As a result, the organization has been deemed as particularly successful in managing the needs of its target audiences while keeping the costs for within its SCM framework contained. Therefore, amazon should be seen as an example of an impeccable SC infrastructure in the context of the global market.
Bharadwaj, S. (2019). The engineering behind a successful supply chain management strategy: An insight into Amazon.com. International Journal of Scientific and Technology Research, 8(10), 281-286.
Ioris, A. A. (2019). Peasant farming in the southern tracts of the Amazon: The reluctant alterity of agribusiness. Perspectives on Global Development and Technology, 18(4), 375-400.
Rashad, W., & Nedelko, Z. (2020). Global sourcing strategies: A framework for lean, agile, and leagile. Sustainability, 12(17), 7199.
Rodrigue, J. P. (2020). The distribution network of Amazon and the footprint of freight digitalization. Journal of Transport Geography, 88, 102825.
Urzedo, D. I., Neilson, J., Fisher, R., & Junqueira, R. G. (2020). A global production network for ecosystem services: The emergent governance of landscape restoration in the Brazilian Amazon. Global Environmental Change, 61, 102059.