Question.660 - Submit your final project. It should be a complete, polished artifact containing all of the critical elements listed in the Final Project Guidelines and Rubric document. The critical elements include what you have been working on with each of your milestone assignments throughout the class. Your submission should reflect the incorporation of feedback gained throughout the course.
Answer Below:
Selection of an Organization 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. Management Practices in Amazon Company Supply Chain Management Practices The Amazon Company has effective supply chain management practices. The mixture of sophisticated information techniques, extensive channels of warehouses, multiple inventory management, and the best transportation facilities makes Amazon's supply chain the most efficient and effective among all the top brands (Dash. et al.,2019). Some of the practices that make supply chain management effective in Amazon's organization involve outsourcing inventory management and insourcing logistics, delivery choices for consumers, push and pull strategy, automation, and supply chain price. The supply chain of amazon is based on the subcontracting of its inventory management (Boehe et al., 2014). The Amazon company primarily uses its delivery vehicles the deliver its products. The amazon organization has various warehouses for various products and consumer tastes. The company provides different delivery choices to consumers, such as one-day delivery, fast delivery, and free super saver delivery. Improvements The improvement that Amazon Company can make in its supply chain management is that the company can improve the AI solutions (Boehe et al.2014). Amazon improves forecast accuracy with the help of machine learning. The company can make specific improvements in its warehouse facilities also. The Amazon company ensures that they have many big warehouses to store much inventory as required, which helps fulfill orders in time (Dash. et al.,2019). The company can also improve the automation process; in 2020, Amazon installed 45000 warehouse robots to automate delivery processes. The company can improve costs; also, the company can manage to decrease a per unit supply cost. Customer Relationship Management Practices Customer relationship management is the main element behind all the valuable features (Angeleanu, 2015). Amazon has made its CRM software, which helps analyze its consumer's needs and preferences. The process which is used by Amazon business for CRM The first step is for the company to classify and understand the business processes and requirements. The second step is defining the services offered to fulfill the needs and wants. The third step is to conduct meeting with the teams so that the team members can bring new ideas about how to engage with consumers (Lameira et al., 2020). The fourth step is observing consumer satisfaction by conducting surveys and feedback forms. The fifth step is to review all the processes and make changes according to the demand and needs of consumers. Improvements The improvements that Amazon business can make in their CRM practices are that the company can make changes in their sites (Ling & Yen 2001). They have to ensure that consumers get their moneys value, provide better consumer services, and provide the best quality and most efficient consumer facilities. The company tries to solve all the queries and problems of consumers so that consumers trust the company and it will not affect the company's image. Tools and Techniques The Amazon Company uses various tools to analyze the product quality; multiple applications are used to evaluate the product quality (Lameira et al.2020). With the help of these techniques, the company can make the best decision on product quality; there are using various types of tools such as Helium 10, Seller app, AmzScout, IO Scout, ZonGuru, and many more. Selecting the appropriate tool by business means that the company can understand the variations between each and how they can use it to improve their quality so that the sales can be increased. Key Areas Impact the Supply Chain In the Amazon business, some key areas can impact the supply chain. Areas are purchasing, Inventory management, demand plan, warehousing, transportation, and consumer service. The purchasing function is one of the main is for any business because it offers the materials and resources required to make a product (Ling & Yen 2001). The management of the inventory system is the primary function of any manufacturing business, whether domestic or international. The transportation function is so essential to the supply chain because it is where the product meets its demand. A company can have the right product at the right warehouse at the right time. Components of Supply Chain The key stakeholders in the supply chain are- suppliers, customers, government imposing rules and regulations, competitors and society as a whole. The main role of stakeholder is to assist an organization in meeting its goal and strategy through their perspective and contribution apart from competitors. Every stakeholder has its own role that plays an integral part in successfully completing the supply chain process. Suppliers are important because they provide raw materials and gives services to the manufacturers. Customers are the most important stakeholders since the profitability rate is dependent on the customers and their loyalty towards a company or its services. The importance of government is to impose norms under which an organization needs to abide by and the rules are not always the same; rather it keeps on changing as per the welfare of the market place and society as well. Society plays a significant role because it is important to take into consideration societys concern and issue so that there is a positive impact in the lives of the people. For instance, in Amazon, the delivery is done through sustainable packaging without the use of plastics but through recycling paper, this suggests a healthy concern that the company is showing to its stakeholders for customers and stakeholders as a whole. The key areas of improvement in operational goals are dependent on various factors in supply chain management. Operational goals can be set in an efficient way by focusing on the delivery process because as a company grows, the expectation and demand also increases and so the order fulfillment process should be implemented in an effective way to meet all the needs of customers. Moreover, reviewing customer relationship management process is another important aspect where improvements can be made by streamlining communication and improves customer service. A company can improve its integrated supply chain management by focusing on various aspects like improving inventory management and distribution network, implementing technologies suitable for supply chain efficiency, building effective supply relationship management and implementing green strategies to enhance sustainability in supply chain process and develop the operational goals. Service, logistics and distribution functions of Amazon Amazon is one of the most essential and top-rated companies with innovative supply chain management. ?The companys operation technology and supply chain management have grown and enriched over the past few decades (Tang & Veelenturf, 2019). Moreover, Amazon expanded its private fleet to increase productivity and improve customer experience. The company has many different services that help people in many ways. Amazon Company provides excellent services to persons such as Amazon prime, prime video, and Amazon AWS, which have become extremely common and have placed Amazon in huge terms of services (Rodrigue, 2020). The company also gives the best consumer services. Also, the company workers are always ready to solve consumer queries. 24*7 consumer support services are available for the consumer, which helps a company to make a great relationship with the consumer. The organization has incredibly detailed yet easy to observe help centers, which let people know the number of specific concerns and their solutions (Lai. et al., 2022). The logistics infrastructure of a company can help the third party; it helps to enhance their capability to serve the consumers and deliver products, or importantly it allows the company to know about their feedback and consequently their digital goodwill (Tang & Veelenturf, 2019). Amazons logistics is shipping and delivery services that complement current providers such as UPS, USPS, and FedEx. The company provides seven-day and same-day delivery options. It utilizes a host of third-party logistics associates worldwide to make it happen, involving walkers and bicyclists in some sections. ?There are some benefits of Amazon logistics, which can provide an advantage in times of high shipping when the facilities like USPS are backed up and bogged down (Rodrigue, 2020).??The company is using e-commerce to penetrate a broad range of consumer sections. To support the need for distribution-based consumption, a pyramid of specialized distribution has emerged, with its own vocational, operational, and physical features (Lai. et al., 2022). The company uses vertical intergradations to control the distribution flows and channels, which helps regulate the parcels in distribution and facilities, including the final deliveries to the consumer. References Angeleanu, A. (2015). New technology trends and their transformative impact on logistics and supply chain processes.?International Journal of Economic Practices and Theories,?5(5), 413-419. Boehe, D. M., Pongeluppe, L. S., & Lazzarini, S. G. (2014). Natura and the development of a sustainable supply chain in the Amazon region. In?Multinationals in Latin America?(pp. 49-71). Palgrave Macmillan, London. Britt, H. (2020).?The 12 Best Supply Chain Companies of 2020. Thomasnet.com. Retrieved from https://www.thomasnet.com/insights/best-supply-chain-companies/. Dash, R., McMurtrey, M., Rebman, C., & Kar, U. K. (2019). Application of artificial intelligence in automation of supply chain management. Journal of Strategic Innovation and Sustainability, 14(3), 43-53. 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. Foster, S. (2018).?Managing Supply Chain and Operations?(2nd ed.). Pearson. Lai, G., Liu, H., Xiao, W., & Zhao, X. (2022). Fulfilled by Amazon : A Strategic Perspective of Competition at the e-Commerce Platform.?Manufacturing & Service Operations Management.Lameira, P. I. D., Filgueiras, T. C. G. M., Botter, R. C., & dos Santos Saavedra, R. (2020). An approach using multicriteria decision methods to barges configuration for pushed convoys in the Amazon.?International Journal of Information Technology & Decision Making,?19(01), 317-341. Ling, R., & Yen, D. C. (2001). Customer relationship management: An analysis framework and implementation strategies.?Journal of computer information systems,?41(3), 82-97. 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. Rodrigue, J. (2020). The distribution network of Amazon and the footprint of freight digitalization.?Journal of Transport Geography,?88, 102825.???https://doi.org/10.1016/j.jtrangeo.2020.102825Tang, C. S., & Veelenturf, L. P. (2019). The strategic role of logistics in the industry 4.0 era.?Transportation Research Part E: Logistics and Transportation Review,?129, 1-11. 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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