Amazon and its Supply Chain Management

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Summative Assessment 2 Amazon and its Supply Chain Management 1 Introduction Cloud computing E commerce artificial intelligence and digital streaming are the main areas of interest for Amazon com Inc a global American technology business with headquarters in Seattle Washington It is among the Four Horsemen of innovation sometimes known as the Big 4 alongside Apple Google and Facebook Amazon is renowned for upending enterprises on a large scale and with innovative technology According to generating more income it is the biggest cloud based platform AI helper supplier and e commerce site in the globe According to revenues Amazon is the biggest online business on the planet It is one of the most expensive companies on the planet and the foremost private firm in the United States The Amazon supply chain is one of the most efficient and cost effective in the world This report will provide an in depth analysis of the Amazon supply chain from its inception to the present day It will outline the key components of the supply chain such as inventory management logistics and transportation and how these components help Amazon remain competitive Bharadwaj 2019 In addition the report will explore the innovations and technologies that Amazon has implemented to improve the efficiency of its supply chain Finally the report will conclude with a discussion of the potential benefits and challenges related to Amazon s supply chain Objectives 1 To optimize the supply chain operations and create efficiencies in inventory management order fulfilment and cost control 2 To increase customer satisfaction by providing faster delivery and improved product availability 3 To develop and maintain a reliable and secure supply chain network 4 To ensure the timely delivery of high quality products at competitive prices 5 To develop and maintain long term relationships with suppliers and vendors 6 To utilize advanced technology and analytics to improve supply chain performance 2 7 To reduce costs associated with inventory and transportation while increasing accuracy and visibility 8 To provide superior customer service through reliable and flexible supply chain solutions 9 To improve the sustainability of the supply chain by reducing waste and emissions 10 To ensure compliance with applicable laws and regulations Strategically Aligning Operations Management to Achieve Objectives Strategically Amazon s operations management aims to deliver on its objectives through a variety of practices These include utilizing advanced analytics and technologies including machine learning to optimize inventory and delivery They also leverage data to inform decisions and build predictive models Additionally Amazon works closely with suppliers and vendors to develop long term relationships and to ensure compliance with applicable laws and regulations The company also focuses on reducing costs associated with inventory transportation and waste through sustainable practices Collis et al 2019 Finally Amazon puts a strong emphasis on customer service striving to provide fast and reliable delivery of quality products at competitive prices Amazon tries to achieve those objectives by 1 Maximize customer satisfaction by delivering products on time with the highest quality and at the lowest cost 2 Increase the efficiency of the supply chain by utilizing advanced technology data analytics and automation 3 Increase visibility across the supply chain to identify areas of improvement and ensure that products are delivered in a timely manner 4 Develop and maintain relationships with vendors and suppliers to ensure a reliable and cost effective supply chain 5 Reduce waste in the supply chain to increase cost savings and environmental sustainability 6 Ensure compliance with all legal safety and environmental regulations 3 Figure Amazon SCM objective Source www esellerhub com blog how can the amazon supply chain management strategy help your business Utilizing Operation Management Principles to Achieve Strategic Objectives Amazon s supply chain management team uses a combination of both traditional and advanced operation management concepts thinking tools and techniques to successfully translate their supply chain management objectives into real world performance This includes adopting lean production methods to reduce costs using predictive analytics to forecast customer demand leveraging automation to reduce manual labour and optimize inventory levels and utilizing advanced analytics to measure supply chain performance Amazon is using a variety of lean production methods to reduce costs including Just in time inventory management Amazon uses sophisticated inventory management software to reduce the amount of stock it holds on hand which helps to reduce storage and holding costs Automation and robotics Amazon has invested heavily in automation and robotics which help to reduce labour costs increase efficiency and improves the accuracy and speed of order fulfilment Kaizen Amazon has adopted the Japanese concept of kaizen continuous improvement to reduce waste and increase efficiency Lean manufacturing Amazon has implemented lean manufacturing principles to reduce waste and improve production cycles Ivanov et al 2019 Supply chain optimization Amazon has used optimization algorithms 4 to improve supply chain performance reduce inventory and delivery costs and improve customer experience Additionally Amazon employs sophisticated supply chain planning tools to optimize the distribution of materials and uses sophisticated logistics systems to manage and track shipments Amazon employs sophisticated supply chain planning tools to optimize the distribution of materials This includes optimization of inventory management order fulfilment and transportation The inventory management system allows Amazon to accurately forecast and plan for the demand of their products ensuring they have the right amount of inventory available at any given time Order fulfilment is a key component of Amazon s supply chain The company uses advanced software to track orders and inventory while using sophisticated systems to quickly and efficiently fulfil orders This helps Amazon to maintain high levels of customer satisfaction Finally Amazon uses sophisticated logistics systems to manage and track shipments This includes tracking inventory levels and shipments and preparing the necessary paperwork for customs clearance Amazon also has access to a global network of warehouses and


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