Answer 1:
In this age of digitized business world, Amazon’s model that creates efficiency, especially dealing with consumers online, and the key to growing and sustaining profitable business operations is the speed of logistics and string distribution network.
Amazon’s logistic and supply chain management model has been able create a loyal and satisfied list of consumers and end users.
This intent of Amazon as an organization is to be able create an experience for the users when they shop online and the speed and efficiency of the logistics and supply chain is the most important feature in view of the fact that the Amazons distribution network spans 220 countries globally, and always delivers on time.
Another unique feature is the pricing strategy that provides the consumers value, hence, making the experience of the end consumers both cost effective and timely in terms of delivery.
Amazon’s payment services enable the consumers to pay on other websites such as Kickstarte, SmugMug, Gogo Inflight to name a few, thus providing consumers convenience.
Answer 2:
Amazon have been able to position themselves as the leaders by having a system that is seamless in terms of taking into account all the stakeholders into consideration sequentially i.e. products to suppliers and distribution centers to its final destination i.e. customers.
Amazon utilizes the technological innovations to its operational advantage and primarily focuses on an ongoing analysis of the shopping patterns and a healthy relationship with suppliers to maintain the competitive advantage.
The network technology is utilized by Amazon to assist in forecasting the purchasing patterns effectively, that helps in sharing the information with vendors to effectively reduce the order waiting time and managing the inventory.
At the Amazon warehouse the accuracy of the system with regards to the products being identified in the warehouse, sorted, packaged, taped and labeled, is amazingly accurate due to the telecommunication network being enabled.
Small teams work to execute the process in a seamless manner and reduce defects effectively, while achieving the company’s goal of a green environment.
The aforementioned helped in decreasing the defects of mishandled inventory by 4% from the earlier 12% and supplier support helps in the process improvement vastly by delivering 99% on global orders in the traditionally busiest festive period.
Postal hubs, delivery infrastructure and carrier services are part and parcel of the Amazon’s logistic system of delivering on time. Amazon has 96 efficient fulfillment centers, being run through highly developed software that has been updated 280 times only in 2013.
The main premise of the software is keep a check and balance of ordered inventory in the boxes as per requests; a truck fleet is at hand to deliver, besides, improving software and running a very smooth global customer centric web service.
Sunday delivery in USA, bike couriers in India and China and aerial vehicles, are all work in progress, Amazon order delivery has improved immensely.
Answer 3:
Every organization has a key operational mechanism that contributes to their success and in the case of Amazon, logistics system is the key and its effective operations help them save cost, in spite of this it is reported that only 40% of capacity is utilized by Amazon and with the launch of new products such as FireTv, Prime to name a few, that impacted the growth in online orders.
Conclusion:
Amazon as an established online retail giant, has been growing constantly, as evidenced from the 2014 3rd quarter sales increase of 20% that amounts to a massive $20.58 billion.
The numbers reaffirm the steps taken as discussed earlier in supply chain and logistics to achieve new heights in sales and customer loyalty, besides; Amazon is not sitting on its laurels, as the launch of a mobile app to revolutionize cards payments, with Amazon leading the way forward in the industry.
