Question.631 - Submit a paper identifying the organization you selected for your final project and explaining why you chose that organization. State the organization's operational goals and identify the key supply chain performance indicators it uses. You will also be looking into the organization's best practices for integrated supply chain management.
Answer Below:
The organization that I have selected for the final paper is Amazon. I have selected this company because personally I have a great experience with this organization and also because of the continuous growth and extensive upgradation in the field of business. This is evident because Amazon has become the topmost multinational company in America that has made its place throughout the world. Along with e-commerce platform, Amazon keeps on exploring new discoveries to increase the success of growth and as such cloud computing and artificial intelligence are also equally given importance in this organization. Moreover, Amazons priority has always been customer and their convenience and this I have experienced by myself and so I belief the company focuses more on customer satisfaction than production. Amazon focuses only on its customers because the company is operated on the basis of four principles- customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking (Tiwari, 2018). Amazons operational goal revolves around the preferences of customers where the company aims to maximize profit as much as possible. One of the major goals in operation is that Amazons production process is dependent on more online stores than brick-and-mortar stores (Polacco & Backes, 2018). This helps Amazon to emphasize and invest all resources in distribution process, in-house warehousing and transportation system. The operation of online store has given ample of opportunities and benefits for the company and the customers as well. As we have seen how pandemic has affected offline stores that has made the companies to shut down. Moreover, the decision-making process is very effective in Amazon than any other organization because Amazon focuses on long term decisions and this enhances customer loyalty in relying on the products that they purchase (Polacco & Backes, 2018). The operational plan of online store has open up to many innovation in its business goals like the delivery process is possible with just a click away or delivery can be done with customized process and it has been anticipated that in future, the products can be delivered through drones with Amazon Air Prime (Britt, 2020). The performance metrics helps every company to identify how effective the business is running and it helps to increase growth through its strengths and work upon the drawbacks that becomes a barrier in prolonged success. There are few important supply chain performance metrics operated by Amazon. They are- Order Defect Rate- The Order Defect Rate is the metrics to understand customer experience which turns out to be negative. Any order in Amazon is considered to be defective when there is a chargeback and negative reviews that leads to very limited number of sales. Amazon aims to have ODR less than 1% and this metric helps the company to boost up the production process and build customer loyalty (Dunne, n.d.). Pre-Fulfilment Rate- When a customer places an order and Amazon has to cancel it because of the products out of stock, that phase is known as pre-fulfilment rate. Amazon sets a target of this rate up to 2.5% and this helps the company to be loyal with the customers and build their trust that when the stock is available, they can order the product again (Dunne, n.d.). Valid Tracking Rate: This is one of the most important metrics that Amazon set in its operation where a tracking number is provided that needs to be valid once the courier gets scanned and the rate should be less than 5% (Dunne, n.d.). This is the benchmark that Amazon has set in this metric to make the delivery process effective. Buyer-seller Contact Response Time- This metric is important to communicate with the customers in time so that there is no misunderstanding or delay in reaching out the customers. Therefore, Amazon should reply back to the customers within 24 hours without any delay and this helps in preventing issues in delivery process (Varia & Mathew, 2014). Product Ranking- Product ranking helps the Amazon seller performance metrics to identify which product is at the top and this is calculated by the number of sales. This helps the company to keep a track on the top products (Varia & Mathew, 2014). . Due to the advancement of technology, the company has combined both traditional and integrated supply chain process where warehouse has been has been automated due to which the delivery process has become more rapid and can be done within one day and two hours delivery with the help of Amazon Prime. Amazon is focusing its production more through in-house process than outsourcing. Moreover, in 2019, Amazon got access to 100,000 electric vehicles for delivery which is the most important competitive advantage in todays business marketing and in future, the company might reach to a stage where they might use drone-based deliveries to the customers. References Britt, H. (2020).?The 12 Best Supply Chain Companies of 2020. Thomasnet.com. Retrieved from https://www.thomasnet.com/insights/best-supply-chain-companies/. Dunne, C.?7 Amazon Performance Metrics You Should Be Tracking | xSellco. xSellco. Retrieved from https://www.xsellco.com/resources/amazon-performance-metrics/. Flamand, O. J., Wisher, A., & Riley, S. (2020). Strategic Plan: Amazon. Mousavi, R., Hazarika, B., Chen, K., & Razi, M. (2021). The Effect of Online Q&As and Product Reviews on Product Performance Metrics: Amazon. com as a Case Study.?Journal of Information & Knowledge Management,?20(01), 2150005. Polacco, A., & Backes, K. (2018). The amazon go concept: Implications, applications, and sustainability.?Journal of Business and Management,?24(1), 79-92. Tiwari, S. (2018). Amazon: customer first approaches. Varia, J., & Mathew, S. (2014). Overview of amazon web services.?Amazon Web Services,?105.More Articles From Operation Management
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