Amazon Company’s Supply Chain Integration

Introduction

By using striking supply chains and deploying technological innovations, Amazon has transformed the outlook for retail. Online retailers have a history of rapid growth and constant innovation. It re-forms the procurement process and allows competitors to rally (Noroozi & Wikner, 2017). This global company is continuing to grow, beating its significant competitors for the limited market. In 2019, 2.5 billion packages were supported by the enterprise, estimated at 20 per household (Jain & Sharma, 2017). Over the past three years, the operations and technology of the company have evolved to help them manage this growth. Thus, different factors are contributing to Amazon, Inc.’s unique and successful supply chain.

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Significance of Supply Chain Integration’s Sales and Operations Planning

Amazon’s exceptional sales and operations planning (S & OP) enable it to plan its goods’ classification, marketing, and customers’ strategies to ensure it meets the distinct demands of the global consumers. This commitment makes the firm realize improved inventory management. Every corporation aims to be accurate in inventory. The scheduling and availability of promising processes work without error by being optimized and 100% accurate in the list (Sundram et al., 2016). Nevertheless, there are always problems with the accuracy of stocks, and corporations have to deal with their business (Jain & Sharma, 2017). Additionally, the company is consistent with its distinct investment policy and maintains its focus on long-term achievements. However, Amazon’s S & OP lessens its operating costs while impacting the workforce positively, hence ensuring that they execute their responsibilities diligently towards guaranteeing that the outcomes match the demands of the customers distributed globally.

Amazon’s competitiveness was influenced by logistics, transport modes, and warehousing positions. Most importantly, the corporation has 145 storage facilities worldwide and clients, making it easier for customers to receive their products more quickly. In addition, the Amazon e-commerce logistics concept is used to deliver the products such as cargo on a timely, efficient, and customer experience basis (Onyusheva & Seenalasataporn, 2018). Lastly, transport modes such as free delivery modes have increased customer satisfaction, thereby creating customer confidence.

Global Sourcing and Procurement and Supply Chain

With the argument that global sourcing increases companies’ likelihood of beating their significant competitors, Amazon considers the program to ensure they adopt the trending business culture. Amazon is a member of the Supplier Ethical Data Exchange (Sedex). This international, non-profit entity offers retailing and manufacturing companies a platform to manage responsible data collections and oversee their supply chain operations’ ongoing improvements (Ashadujjaman, 2019). Amazon is deeply committed to its businesses’ legal and ethical behavior. It involves vendors who support human rights, ensure safe, inclusive working environments and create a more sustainable future. Thus, the company sets supply chain requirements and standards for all supply chain parties, including service providers, vendors, and suppliers. The international syndicate considers partnering with players that adhere to the highlighted standards. This outsourcing and procurement approach helps share potential risks between the stakeholders, hence playing a crucial role in overseeing the success of the company’s operations (Sundram et al., 2016). Unfortunately, outsourcing exposes the firm’s management to hidden costs and confidential data, risking getting into the hands of the potential perpetrators.

Amazon’s Efforts to Leveraged E-Commerce Strategies

Amazon has cracked into new economies over the past few years, acquired new companies, and expanded its availability offline. During the recent decade, Amazon became the titan in e-commerce, accounting for 34% of e-commerce expenditure in 2017 (Onyusheva & Seenalasataporn, 2018). It has the power to deploy technological advances and innovatively use its supply chain, and change the e-commerce landscape as you know it. It has unending resources at its disposal. Amazon has become capable of great things in recent years, while it started as an online platform for other dealers to sell their products (Onyusheva & Seenalasataporn, 2018). Thus, the firm has leveraged e-commerce approaches to ensure it grows and remains sustainable. The decision to display products’ data online has been a success, with the customers not needing to travel to the various stores to confirm the prices. Moreover, the strategy allows the customers to purchase what they deem affordable (Jain & Sharma, 2017). Thus, I believe Amazon is setting an example for other global firms to take advantage of the supply chain integration because of its unique position on the worldwide map. From warehousing and storage management to timely delivery and costs, Jeff Bezos and his organization have figured out a way to optimize almost all of the supply chain’s pieces, thus, making them successful.

Conscious Capitalism and Christian Worldview and Amazon’s Supply Chain Integration

Corporate leaders are encouraged to make their enterprises the best choice. Companies will probably learn more about the increasing popularity of intent-driven businesses, also called conscious capitalism, when they start exploring innovative methods of increasing profit. Capitalism conscious is an approach that provides stakeholders with intellectual, environmental, cultural, emotional, and social wealth in addition to financial wealth. This approach is more holistic and considers their effect on the earth and the local area (Berge, 2019). Many corporate leaders, managers, and entrepreneurs practice conscious capitalism to change the way they conduct business. Similarly, such firms consider Christian values such as honesty and love when executing their roles. For instance, Amazon takes advantage of conscious capitalism and Christianity to ensure that it promotes corporate social responsibility principles.

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Conclusion

A cult has formed around Amazon and for one crucial reason, quick and efficient supply chain management is a new favorite choice for customers. The application of advanced digital technologies, a comprehensive warehouse network, multi-level inventory management, and effective transport makes Amazon’s distribution network among all significant companies all over the world the most efficient. The distribution network of Amazon largely depends on its inventory control outsourcing. In regular Amazon warehouses, items that are rarely purchased are not stored. Such efficiencies have now made it possible to shop from the comfort of one’s own home.

References

Ashadujjaman, M. (2019). International sustainability self-regulatory CSR certification standards and the challenges of embedding them in the RMG production processes in Bangladesh. Yuridika, 34(3), 483-492. Web.

Berge, E. (2019). From capitalism to the collaborative commons. Integral Review: A Transdisciplinary & Transcultural Journal for New Thought, Research, & Praxis, 15(1). Web.

Jain, D., & Sharma, Y. (2017). Adoption of next generation robotics: A case study on Amazon. Perspect. Case Res. J, 3, 9-23. Web.

Noroozi, S., & Wikner, J. (2017). Sales and operations planning in the process industry: A literature review. International Journal of Production Economics, 188, 139-155. Web.

Onyusheva, I., & Seenalasataporn, T. (2018). Strategic analysis of global e-commerce and diversification technology: The case of Amazon. Com INC. The EUrASEANs: Journal on Global Socio-Economic Dynamics, 1(8), 48-63. Web.

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Sundram, V. P. K., Chandran, V. G. R., & Bhatti, M. A. (2016). Supply chain practices and performance: the indirect effects of supply chain integration. Benchmarking: An International Journal, 23(6). Web.

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NerdyRoo. 2022. "Amazon Company’s Supply Chain Integration." July 13, 2022. https://nerdyroo.com/amazon-companys-supply-chain-integration/.

References

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