Interactive Analysis-Creating Value Through Operations

Interactive Analysis-Creating Value Through Operations

How Amazon’s Supply Chain Works

Amazon’s supply chain is divided into Fulfillment by Amazon and fulfillment by Merchant. The company uses the Fulfilment by Amazon option to take care of all customer support and logistics (Jain, 2021). The option includes a Fulfilment by Amazon Onsite program where the company uses warehouse management software to help optimize the warehouses owned and operated by third-party sellers. The third-party sellers handle their products’ inventory, and Amazon picks orders from the sellers’ warehouse and selects the most effective and efficient fulfillment approach. In Fulfilment by Merchant, third-party sellers list their products on the company’s website and handle all fulfillment and storage (Jain, 2021). The supply chain also includes Amazon’s delivery fleet and Amazon fulfillment centers.

How Amazon’s Supply Chain Has Given It a Competitive Advantage

Amazon’s supply chain has significantly increased its competitive advantage by creating customer loyalty and increasing customer satisfaction because of fast delivery. The supply chain also enables the company to deliver products in different regions globally, thus enabling the company to expand its customer base.

Additional Research that the Consulting Team Should Gather and Analyze

The consulting team should gather and analyze additional data on people and culture. According to Robertson (2022), people implement policies and procedures that improve the supply chain. Therefore, it is important to determine whether Amazon’s employees have the right skills and capabilities needed for efficient supply chain management. It is also important to determine the impact of the company’s culture on supply chain management.

The Process that the Consulting Team Should Recommend

The consulting team should recommend collaboration between employees in decision-making. Employees offer valuable information on the source of the risk and the most effective approach to eliminate it because they are actively involved in supply chain activities. Collaboration in decision-making also mitigates conflict between senior management and labor by ensuring that they agree on what should be done without employees feeling ignored.

References

Jain, V. (2021). An overview of Wal-Mart, Amazon, and its supply chain. ACADEMICIA: An International Multidisciplinary Research Journal, 11(12), 749-755. https://doi.org/10.5958/2249-7137.2021.02667.7

Robertson, P. W. (2022). Supply chain competitive leadership. Supply Chain Leadership, 85-101. https://doi.org/10.4324/9781003084044-5

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The following exercise introduces you to supply chain management strategies and collaboration in a team setting.

Complete the exercise, Interactive Analysis: Creating Value Through Operations. A transcript of this interactive exercise is also available.

Consider what you learned in the experience and respond to the following in a minimum of 175 words:

How does Amazon’s supply chain work?
How has Amazon’s supply chain given it a competitive advantage?
In the exercise, what additional research should the consulting team gather and analyze?
In the exercise, what process should the consulting team recommend for solving the internal risks to the supply chain and mitigating the conflict between labor and senior management?