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Unit Name (OPERATIONS MANAGEMENT)

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Assignment Context

This report will be based on ‘Amazon.com Incorporated’, an American electronic-commerce and cloud computing
company. Amazon.com was founded by Jeff Bezos and initially went online in 1995. An online bookstore at conception,
Amazon grew rapidly and achieved sales up to $20,000/week after the first two months due to its ability to offer a
wide range of titles, much more than could be offered by a standard “brick and mortar” book store. It has now grown
into the leading e-commerce website worldwide with upwards of 566,000 employees.

Using the fact that the Amazon River was the biggest river in the world as his inspiration, Bezos envisioned his company
becoming the biggest bookstore in the world. Fast forward to the present and Amazon.com Inc, has undoubtedly
surpassed Bezos’ expectations as it grew into an organization with presence in almost every country worldwide. This
was made easier by the fact that it can be accessed by anyone with an internet connection. The main countries
worldwide have been the United States of America, United Kingdom, Germany, and Japan. Their customers also come
from a variety of backgrounds. These range from all social classes, lower class to upper class and aged 18 years and
older.

Bezos stuck to his original vision of selling books but has expanded tremendously to offer goods such as Amazon Video,
Amazon Fresh, clothes, watches, jewellery, electronics, and a host of other merchandise. He once told a reporter that
there is nothing about his business model that cannot be copied over time and this statement has borne fruit with
“copiers” such as Alibaba holding and EBAY incorporating correlative models but without the same success so far.

Amazon.com Inc, is truly a diverse company which ensures its exponential growth and makes it a trailblazer in the
ecommerce industry.

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Table of Contents

INTRODUCTION…………………………………………………………………………………………………………………………………………… 4
1.QUALITY MANAGEMENT…………………………………………………………………………………………………………………………… 5
a. CUSTOMER FOCUSED ………………………………………………………………………………………………………………………………….. 5
b. CONTINUOUS IMPROVEMENT……………………………………………………………………………………………………………………… 5
c. PROCESS CENTERED …………………………………………………………………………………………………………………………………… 5
d. INTEGRATED SYSTEM………………………………………………………………………………………………………………………………… 5
e. FACT BASED DECISION MAKING………………………………………………………………………………………………………………….. 5

1.1 OPERATIONS PERFORMANCE OBJECTIVES …………………………………………………………………………………………… 7


a. DEPENDABILITY………………………………………………………………………………………………………………………………………….. 7
b. SPEED…………………………………………………………………………………………………………………………………………………………. 7
c. FLEXIBILITY…………………………………………………………………………………………………………………………………………………. 7
d. COST………………………………………………………………………………………………………………………………………………………….. 7
e. QUALITY……………………………………………………………………………………………………………………………………………………. 8

2. INTEGRATION OF SCM ………………………………………………………………………………………………………………………. 9


a. ETHICAL RESPONSIBILITY…………………………………………………………………………………………………………………………. 9
b. SUSTAINABILITY……………………………………………………………………………………………………………………………………… 10
c. INTEGRATION OF CSR WITH SCM ………………………………………………………………………………………………………… 10

3. PARTNERSHIP SOURCING…………………………………………………………………………………………………………………… 11

4. TRANSPORT RISKS……………………………………………………………………………………………………………………………… 13

a. PRODUCT LOSS………………………………………………………………………………………………………………………………………… 13
b. PRODUCT DAMAGE ………………………………………………………………………………………………………………………………… 13
c. PRODUCT CONTAMINATION…………………………………………………………………………………………………………………… 13
d. DELIVERY DELAY……………………………………………………………………………………………………………………………………… 13
e. EMPLOYEE INJURY…………………………………………………………………………………………………………………………………… 14

4.1 DEMAND MANAGEMENT PLANNING……………………………………………………………………………………………… 15

CONCLUSION………………………………………………………………………………………………………………………………………… 16

REFERENCE…………………………………………………………………………………………………………………………………………… 17

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INTRODUCTION

‘We are what we repeatedly do. Excellence then is not an act, but a habit.’ Aristotle has indeed said it best,
excellence requires continuous performance and operations management requires excellence. Operations
Management is an area of management that needs the highest level of efficiency. It deals with the
administration of business practices in the production of goods and services by converting inputs into
outputs for the delivery of a product.

Amazon.com Inc, is a dominator in the e-commerce sector and has been successful in the management of
its’ operations around the globe.

Firstly, there will be an overview of the importance of Quality Management, focusing on how the
effectiveness of the operation affects the customers’ experience. These operational objectives include:
speed dependability, quality, flexibility, and cost. As Amazon is involved in almost every sector all of these
objectives are important.

Next, there will be a discussion on Amazon’s integration of supply chain management with sustainability,
ethics, and corporate social responsibility. These work together to ensure that customers get the best quality
product and ensures that suppliers adhere to a code of conduct. Additionally, Amazon has many partner
suppliers who guarantee a continuous supply of goods and services for customers. However, there has been
questions raised on the quality of goods from these suppliers. Transport risks also play a part in affecting the
quality, it also causes delivery delays. This requires the demand management approach of level capacity
planning. Capacity planning ensures that there is a constant supply of goods.

Amazon.com Inc, is a strategic company that effectively aligns its operations with all the factors needed for
effective operations management.

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1. QUALITY MANAGEMENT

Quality is the ability of the product or service to do what it is supposed to do and to satisfy the customers’
expectation (Robbins & Coulter 2012). Slack & Lewis further describes it as being “fit for purpose”. However,
quality management is a social responsibility which focuses on how the effectiveness of operations affects
the customer’s experience. For large companies such as Amazon.com, Inc. which will be referred to as
Amazon for the duration of this essay, the goal is total quality management (TQM). TQM is a management
system for a customer-focused organization that involves all employees to continually improve (American
Society for Quality n.d.).

a. CUSTOMER FOCUSED
Firstly, quality management improves the company’s product. Amazon’s, number one leadership principle
is customer obsession (Amazon n.d.). They emphasise starting with the customer and working their way
backward. Being a customer focused organization is an important TQM principle, which is done by
understanding the customer requirements. As their main product is their website, customers can find exactly
what they need with a simple query. Customers can also get assistance easily from the help tab on the page
or Amazon can be contacted directly via a phone or email. However, although the company focuses on the
customer some products have been found to be counterfeit. Additionally, to get packages delivered on time
workers are overworked with several complaints about job injuries. But being customer focused gives
Amazon its outstanding reputation, increasing customer loyalty.

b. CONTINUOUS IMPROVEMENT
Secondly, continuous improvement allows TQM to succeed. Some of Amazon’s innovative measures are
Amazon Prime which gives the customer access to two-day shipping as well as “budget friendly gift ideas”,
Amazon Video, Amazon Music and many other incentives. This drive for improvement increases revenue
and diversifies Amazon’s portfolio. However, the demand for continuous innovation can make employees
disenfranchised as small achievements may be overlooked for bigger ones. This principle is important for
Amazon as it allows them to stay ahead of the market.

c. PROCESS-CENTERED
Amazon is a marketplace model and is process-centred. Along with being a retailer it allows other sellers to
list items on its website for profit thereby creating a mutually beneficial supplier arrangement. This is called
Fulfilment by Amazon and it allows sellers to retain a percentage of the profits from goods sold. Goods are
delivered to a warehouse, sorted randomly and when an order is made it is delivered to the customer by a
delivery van. Customers can rely on Amazon, knowing that their goods will be delivered on time.

d. INTEGRATED SYSTEM
As Amazon is not a primary creator of most of its retail products they act as a third party in quality assurance.
Amazon Web Services has defined quality as “our products and features ability to satisfy the requirements
of confidentiality, availability, integrity, and security”. It is also 1SO 9001 certified so that customers can
benefit from additional assurance and transparency that the certification provides (Amazon Web Services
n.d.). One of the main issues is whether products are original, this system gives customer’s a better assurance
of the type of product.

e. FACT BASED DECISION MAKING


Amazon also has an increased performance status. Fact based decision making has helped them grow
exponentially, from 2004 to 2017 with the net sales revenue increasing 25 per cent in these years (Statista
n.d.). This stems from an increase in productivity. This productivity can be due to the effective quality
management that ensures employee participation and individual pride for workers. This principle
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benchmarks the company’s performance and shows Amazon where there may be shortcomings in the
running of the organization.

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1.1. OPERATIONS PERFORMANCE OBJECTIVES

Lowson tells us that operations management is the design, operation, and improvement of the internal and
external systems, resources and technologies that create and deliver the organisation’s primary goods and
services (Lowson 2002). Amazon’s, main goal is to fulfil these objectives to satisfy the customer’s needs.
These objectives help organizations measure the operating performance allowing companies to achieve
higher profits.

a. DEPENDABILITY

Firstly, one of these goals is to be dependable. In the delivery of goods, it must ensure that the exact order
is delivered to the customer on time. This increases customer retention and satisfaction. It is a transforming
resource, based on a computer algorithm which must perform continuously for orders to be fulfilled.
Customers can track their order on the website, knowing the exact date that their package is set to arrive.
Amazon’s ability to deliver items on time is important to business owners who make money on their
platform.

b. SPEED

Additionally, speed is important. Amazon Prime Now offers one-day shipping as well as two-hour delivery to
customers in qualifying zip codes. As of May 2018, Amazon has 122 fulfilment centres in the United States
of America (USA), with the United Kingdom (UK) second worldwide with 22 centres. It also has 53 Prime
Now centres in the USA (Amazon Global Fulfillment Center Network 2018). According to Statista (n.d.), 76
per cent of Prime members has joined due to 2 free day shipping.

c. FLEXIBILITY

Flexibility ensures that the customers’ needs are met on time. Amazon adapts quickly to meet these needs
ensuring that customers are always satisfied. For example, In-Home delivery allows the package to be
delivered inside the customer’s house when the customer is not there. This is done through Amazon’s cloud
system and the delivery is recorded the entire time. Amazon’s flexibility is also shown by the amount of
goods and services that it provides. This diversification allows the customer to get food anytime through
Amazon Fresh, immediate movies online from Amazon video, electronic books downloaded instantly from
Amazon Kindle and cell-phones by Amazon Wireless which are equipped with Alexa. Alexa acts as an
assistant fulfilling every customer request.

d. COST

Amazon ensures that the customer can choose the product which is most within their budget by the
mechanism of sorting the price from high to low. For its shipping, it offers free shipping for standard shipping
days on orders twenty-five dollars and above or a small fee for goods to reach the customer faster. They also
offer many deals as well as annual sales such as Black Friday. Statista (n.d.), has also shown than 65 per cent
of buyers shop on Amazon due to low cost.

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e. QUALITY

Quality allows the customer to get the product as advertised. Amazon relies on sellers to ensure that they
sell quality items. This is done through the review system. However, if a product falls below standards the
return policy helps this.

Dependability, flexibility, speed, cost, and quality are all relevant to Amazon. And as it is an international
company all the elements work together to accomplish the company’s objectives.

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2. INTEGRATION OF SUPPLY CHAIN MANAGEMENT WITH SUSTAINABILITY
ETHCS AND CORPORATE SOCIAL RESPONSIBILITY

Blackstone(2008) describes a supply chain as a global network which delivers products and services from
raw materials to end customers in an engineered flow of information, physical distribution, and cash.
Amazon falls into the ultimate category in Mentzers’ categories of supply chains which includes all
organizations that have a direct or indirect link to the operations of the focal organization (Mentzer 2000).
It’s supply chain map also represents a cyclic flow that includes the primary flow of materials and the reverse
flow after delivery and consumption, such as procedures for returns, recalls, and recycling efforts (Gardner
& Cooper 2003).

However, as the ultimate category and cyclic flow are complex mechanisms there is high risk in the
management of the supply chain. Supply chain management (SCM) maximizes the customer’s value,
achieving a sustainable competitive advantage by actively managing the supply chain (SCRC SME 2017).
Amazon integrates SCM with sustainability, ethics and corporate social responsibility (CSR), to achieve
effective organisation within its’ business.

CSR integrates ethics and sustainability. It is defined as by (Sheehy 2015) as ‘international private business
self-regulation’. It has five parts: environmental, social, voluntariness, economic, and stakeholder
dimensions.

a. ETHICAL RESPONSIBILITY

Ethical responsibility falls under the social and voluntariness dimensions, it says that moral obligations must
include a willingness to engage others in the difficult work of defining what the crucial choices are that
confront technological society and how intelligently to confront them (Beamon 2005).
This subscribes the company to an ethical code in the supply of goods and services to the customer. Amazon
integrates SCM with ethics in different ways.
Amazon requires suppliers and subcontractors in the manufacturing supply chain and those supporting
Amazon's operations to comply with the Supplier Code of Conduct. Compliance is ensured as suppliers must
give a remediation plan for each issue with Amazon conducting follow up assessments. Employees also must
meet with suppliers to further remediation (Amazon 2018). Additionally, they conduct benchmarking with
industry and multilateral groups in the designing, operating and improvement of their risk assessment and
audit program. On the review of Audit assessments, corrective action plans are then implemented with
suppliers as needed.

Key areas of Ethical Responsibility are:


 Health and safety in production areas and any living quarters
 The right to legal wages and benefits
 Appropriate working hours and overtime pay
 Prevention of child labour or forced labour
 Fair and ethical treatment, including non-discrimination

However, Amazon has been in the middle of many controversies related to its ethical practices. These include
poor warehouse conditions, anti-unionization efforts, Kindle remote content removal and taking public
subsidies. They have also sold counterfeit products. From a Cornell Study, it was found that 85 per cent of
reviewers received free products because of positive feedback (Lowery 2011). Amazon has taken steps to
reduce this. These include a brand registry which helps protect trademarks on the digital platform. Sellers

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pay a one-time registration fee as well as provide invoices from manufacturers or distributors for
authenticity (Business Insider 2016).

b. SUSTAINABILITY
Amazon has tried to increase its sustainable efforts. As delivered goods require packaging, Amazon has
sought for greener initiatives. There is Frustration-Free Packaging which is done without plastic clamshells,
wire ties, and other redundant packaging features. Packages are shipped in corrugated containers which
contain 43 per cent recovered fibre content. Once used, these containers are 100 % recyclable for use in the
manufacturing of other paper products (Day one staff 2017). In 2013, Amazon announced a truly
revolutionary technology that could radically change the way packages are delivered. This was the use of
battery-powered drones to deliver packages.

Additionally, the company has many green buildings with six of these awarded a Leadership in Energy and
Environmental Design (LEED) Gold certification for sustainable design and construction methods. They have
recently implemented solar installations on the rooftops of fulfilment and sortation centres with the goal of
50 centres being outfitted by 2020.

Amazon also has alternative websites that allow consumers to buy green items. These are Vine.com and
Amazon Green. Qualifying green products must meet at least one of the following criteria (Matthews 2014).

 Energy efficient, natural


 Organic, designed to remove toxins
 Powered by renewable energy
 Reusable, or water efficient

c. INTEGRATION OF CSR WITH SCM

As the sustainable aspect has already been dealt with, the integration of the social and economic aspect of
CSR with SCM will be examined. The social aspect of SCM deals with how a company empathizes with the
society. Amazon assists the community through developmental support in education, healthcare, and
environmental conservation. This is done through Amazon Smile, where a percentage of sales revenues are
donated to charitable organizations selected by customers (Ferguson 2017). In Seattle where Amazon’s
Headquarter resides, Amazon has contributed more than 20 billion to the local economy with
unemployment less than the national average (O’Connell 2017). Locals will therefore have an increase in the
amount of expenditure, increasing the likelihood of buying from Amazon.

Conversely, the economic dimension in CSR details how Amazon aims to fulfil its profitability commitment.
Along with being sustainable, they emphasise continuous innovation. This advancement in technologies and
market strategies has caused exponential growth. Amazon matches what every major company in each
sector does and strives to do better. For example, they have made their own virtual assistant, “Alexa”. This
is capable of voice interaction, making to-do lists, setting alarms, controlling several smart devices using
itself as a home automation system. This is comparable to Apples’ ‘Siri’ and Googles’ ‘Google Assistant’.
These advances have widened Amazon’s reach allowing them to partner with more suppliers around the
world. Economically, Amazon is ahead of the game and seemingly unstoppable in market domination.

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3. PARTNERSHIP SOURCING

Partnership sourcing leads to superior performance as it creates long-term trust between a supplier and
buyer (Lysons 1996). In turn, partnerships create more value for the customer. Amazon uses partnership
sourcing to become a first-class organization. This section will show the benefits of partnership sourcing to
Amazon.com.

Firstly, partnership sourcing has allowed the company to increase its’ efficiency (Lysons 1996). In 2013,
Proctor & Gamble (P&G) allowed Amazon to set up shop within their own warehouses. This was due to
Amazon launching a program called Vendor Flex where they worked within suppliers’ own warehouses and
distribution networks achieving direct access to goods. P & G gave Amazon the ability to ship their products
to the customers as soon as it was ordered (Coyle 2013). This agreement saved Amazon’s shipping and
storage costs and cut P & G’s transportation expenditure.

This efficiency was also increased by Amazon teaming up with Kaleido, a start-up company born out of a
leading blockchain incubator known as Consensys (Rooney 2017). The company’s aim is to give Amazon Web
Services’ customers an easier way to get into the same technology that underpins Bitcoin. This would help
customers move faster and not worry about managing blockchains on their own.

Partnership sourcing also makes innovating easier. IBM recently did a study on the main reason companies
enter into partnerships and in a survey of 1300 people 39 per cent attributed this to innovation in at least
one business or IT area (International Business Machines Corporation 2013). They also divided innovators
into two categories: enterprise innovators and focus innovators. Amazon falls into the Enterprise Innovators
category which means that they outsource more areas of their business, sourcing services to drive
innovation. This is done by changing how they operate with an emphasis being placed on the monetary value
of their goods and services.

Enterprise Innovators also had the highest gross profit of 11 per cent when compared with two per cent for
other partnership strategies. Their main focuses are agility and market responsiveness. As Amazon has many
markets in many geographic locations, agility means how quickly they can transform to serve these new
markets. This makes them dependent on agile supply chains and partnerships that can drive this. These
innovators also ensure that they can anticipate technological and market shifts. Therefore, strong research
and development comes into play here along with predictive modelling to know in advance what is to occur
next.

As (Business Wire 2017) explains:

One example of this is that Amazon and Microsoft are partnering to better integrate their Alexa and
Cortana digital assistants. This will allow users to access both platforms giving Amazon customers
more choices across different platforms. Jeff Bezos stated that ‘together, their strengths will
complement each other and provide customers with a richer and even more helpful experience’.

This sense of choice is increased by the variety of products that the customer can choose from. This variety
can be attributed to the number of suppliers the organisation has. They have individual and professional
sellers where sellers are given the opportunity to have their products ‘fulfilled by amazon’. Fulfilment by
Amazon allows businesses to partner more closely with Amazon allowing for the storage and shipping of
inventory to customers.
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This benefits business owners as they can put more focus on their product rather than all aspects of the
business. Therefore, this acts as a cost reducer, which increases savings by cutting down on the amount of
tasks that owners have to perform and lowering the amount of people necessary to be employed.

Amazon also receives benefits from this. Firstly, it increases the number of new businesses partnering with
them. Due to the decrease in the number steps in the delivery of a product to a customer, more people may
find it easier to get into this type of business. Additionally, it helps them expand their operations. As more
people become sellers, Amazon, in turn, would have more goods to sell. This increases opportunities for
employment within the company. This also allows Amazon to be more competitive in their industry. Amazon
has taken away the ‘middle man’. Therefore, businesses no longer have to rely on other businesses to do
inventory, storage, and shipping.

Amazon Web Services also has a partner program called the Amazon Web Services Partner Network (APN).
It is a global business which helps APN Partners build successful businesses. They offer, business sales
marketing and technical resources.

However, there are some risks associated with partnership sourcing. The main one is that any obstacle the
supplier faces, Amazon will be affected and vice versa. If the product is counterfeit, Amazon’s brand suffers,
additionally any change in the algorithm of the website can affect what page a supplier’s product ends up
on. This can cause less people to purchase a supplier’s goods, decreasing profits.

The benefits outweigh the risks as having many options has made the company global, stable and
sustainable. Therefore, Amazon should continue with this strategy as it will allow the company’s increased
growth.

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4. TRANSPORT RISKS

Transportation acts as the foundation of the supply chain. It allows for the movement and storage of goods.
Amazon’s main logistical division is called Amazon Transportation Services (ATS) which reduces the use of
UPS and Fed Ex. However, there are many risks to transportation that may impact operations within Amazon.
These risks will be discussed and ways they can be mitigated will be considered.

a. PRODUCT LOSS

It has been reported that companies such as UPS has been known to lose packages during transit. Due to
Amazon’s complex but effective logistical structure this can be a rare occurrence. Additionally, although
Amazon boasts home deliveries, packages left at the door can easily be stolen (Canadian Broadcasting
Corporation 2017). This causes a loss of profits due to having to refund customers. If lost, staff must locate
the packages and deal one on one with customers. However, Amazon’s implementation of Amazon Key to
deliver packages inside houses as well as Amazon Locker which gives customers a physical location to collect
packages has decreased the number of lost packages.

b. PRODUCT DAMAGE

Products can be damaged during transportation. This can be a result of improperly handled packages causing
them to fall or from packages being handled roughly. Employees play an important role in ensuring that
products are handled effectively. However, as Amazon has multiple sellers some products can be received
in a damaged condition. Customers can claim refunds on damaged products without returning them. If
noticeably damaged in transit an employee would have to source another from a supplier.

c. PRODUCT CONTAMINATION

As Amazon also transports food, if it is not kept in proper storage at a certain temperature, products can
become contaminated. This can be life threatening to customers as they can be at risk for salmonella or
other bacterial viruses. It can also cause a decrease of sales. This decrease may cause the dismissal of
workers responsible for the contamination. Amazon will then have to rehire workers which can decrease the
pace of work in the warehouse.

d. DELIVERY DELAY

Due to the complexity of transportation there can be delivery delay. This means that packages are not
received by customers on time. Reasons for this can be (Amazon n.d.):
 Missing the number of apartment, floor or unit
 Bad weather conditions
 Custom procedures internationally
 Incorrect Addresses

This increase in late deliveries can be attributed to an increase by 73 per cent of items that are now available
for free two- day shipping.
If packages take too long to arrive, customers are free to cancel and demand refunds for the purchase.

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e. EMPLOYEE INJURY

Employees can sustain injuries in the handling of packages. As some packages are heavy this can cause injury
to their back, arms, and/or legs. An Amazon employee was killed while doing maintenance on a forklift after
it fell on him (Del Rey 2017). Also, a worker has stress fractures in both feet which was attributed to walking
miles in a concrete warehouse. If an injury occurs on the job there will be a pause in operations as the injured
person would have to be attended to. This can cause a delay in the processing of products and ultimately a
delay in delivery.

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4.1. DEMAND MANAGEMENT APPROACH

Demand management is a concept that is used to forecast and manage the supply of goods and services. It
balances the customers’ requirements with the capabilities of the supply chain (Rogers, Croxton, Lambert,
& García-Dastugue 2002). There are two plan approaches; level capacity and chase demand. The chase
demand plan approach requires inventory to fluctuate with demand avoiding stockpiling. (Slack, Chambers
& Johnson 2010).

However, as Amazon is an eCommerce website it requires a constant flow of goods for customers’ needs to
be fulfilled. And as customers buy goods which are already available on its website a level capacity approach
would be recommended for the company. With this approach, the organisation manufactures or produces
at a constant rate of output ignoring any changes or fluctuations in customer demand levels. This often
means stockpiling or higher holdings of inventory when customer demand levels fall.

Firstly, there is a stable use of manpower. As Amazon will always have a lot of products in its inventory, there
will always be use for workers. Workers can depend on having stable jobs. This will increase employee
engagement and performance as employees will know exactly what the company needs from them which
would, in turn, increase their level of productivity (Root n.d.).

Additionally, as most of Amazon’s goods are non-perishable, not customized and predictable this strategy is
effective. Goods could therefore be stockpiled and stored for long periods of time until needed. However,
Amazon’s Prime Delivery system significantly reduces stockpiling ensuring that the movement of goods from
supplier to customer is efficient. The challenge comes in with perishable food items that are sold by Amazon
which although are only a small percentage of overall goods sold it is bound by expiry dates that Amazon
has to abide by.

This methodology allows for a low unit cost. As level capacity planning includes facilities, employees, supplies
and production schedules Amazon can easily observe costs during periods of growth and recession (Root
n.d). This allows the company to budget for upcoming changes, and apply financial resources where needed.
It also makes developing delivery and shipping schedules for products easier.

Lastly, level capacity planning makes opening new facilities in different locations easier. As Amazon is a global
company having information from its’ existing locations allows it to develop of a more accurate projection
of needs for employees and facilities. This gives Amazon an advantage as the maintenance of proper
production levels even during expected business cycles is possible (Root n.d.).

Although this approach would be suitable for Amazon. In order for the company to be sustainable, it requires
a mixture of the two approaches.

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CONCLUSION

Amazon is a strategic management company. As a leader in its industry, it is an innovator in delivering


continuous high levels of performance.

Its’ quality management approach is unlike any other as it just does not aspire to meet the customer’s needs
but it obsesses about these needs. This obsession has allowed it to deliver quality goods and services that
make customers loyal.

As a company, it fulfils its’ operational performance objectives, giving the customer value for money as goods
and services are delivered on time. This strategy, however, is not without its risks as there are several
transport risks that the logistical arm of the company must mitigate.

These risks can not only affect customers but can be fatal to employees. However, by having a continuous
supply of goods and services along with ensuring Corporate Social Responsibility, Amazon has cemented
itself as the head of the eCommerce industry. CSR ensures sustainability and ethical responsibility which
makes Amazon not only culpable to its customers but its employees and the world at large.

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