Mission and Vision of Amazon.com
Question:
Discuss about the Analytical Report On Procurement And Supply Chain Amazone.Com.
Supply is the distribution of goods from the manufacturer to consumer through a process (Soucy, 2011). Supply chain is a complex way that shows how the supply of goods runs from the source to the final. Amazon Company is an Electronic business based in Seattle, Washington America (“An In Situ Leaf and Branch Warming Experiment in the Amazon”, 2011). This company is owned by Jeff Bezos who founded it in 1994. Amazon.com Website started as a bookstore and later broadened to sell video, audio, audiobook downloads and streaming, software, videogames, food and jewelry. It is the second largest ecommerce in the world after Alibaba.com in terms of total sales (Baugh, Ben-David & Park, 2014).
Visions are ideas in the mind of an individual or where a company sees itself in future. Visions help a company to always work to see itself in the pictured position (Amazone & Lewis, 1996). Missions are the strategies and plans that re put down to achieve the mission and goals are statements of what a company seeks to achieve (Vargas Leon & Kuehn, 2014). In any company operations, the three are the key drivers of all activities.Amazon.com aims at providing the best quality of services and quality of goods to maintain its position as the top most e-commerce company in the world (Baugh, Ben-David & Park, 2014). The company wants to be the most digitalized company in the world and always provide up to date services and information.
As Amazon.com operates online, the supply of goods is done after a customer places an order, and it then reaches the warehouse where an employee sorts the kind of goods the customer wants(Tombs & McColl-Kennedy, 2013). The product is then placed in crates on a conveyor and passed through the distribution Centre where it is matched with the customer’s order, placed in a boxed and then sent to the buyer through the US postal service (“Plan B for anti-miRNA”, 2013). Goods reach the customer within seven days after placing an order. The process seems so first and simple but there could be ways of making it better. Goods can take a maximum of seven days before it arrives to its destination which means a customer should be patient and in times of emergency, the customer may be inconvenienced(Osherovich, 2011). Therefore, Amazon should take an initiative of improving the time of delivery by opening smaller warehouses in different states for them to be closer to every customer. They can also partner with dealers to represent the in various parts. When shipping goods to a customer who is far from the warehouse, the cost of transportation will be very high compared to a closer one hence the need to open up minor warehouses to cut the cost of transportation(Cucchiella & Koh, 2012). The costumer needs to be assured of the exact time his or her order will be arriving for their own good. Sometimes, mishandling of goods on transit result to the products arriving to its destination while it has spoilt already, this can bring loses to the company and inconvenience its customer which may make the buyer cease from purchasing goods from the company.
The Supply Chain Process
the operations of any business depend on its management and strategic organization of the company (Weber & Chapman, 2011). Amazon Company is an ecommerce business which highly depends on the technological support. Its operations are should be based on an improved and advanced technology so as to offer quality services. The warehouses should be located in an area where their customers are concentrated (Coyne & Wing, 2016). As the company continues to expand, there must be strategic plans to help it compete well in the market and sustain the future changes in the market. The company should use technology to ensure that their online customers get the best quality services. Amazon should encourage its employees to be innovative and creative enough to be able to come up with new and improved ideas so as to meet the expectations of the customers (Jackson, 2012). systems should be automatic to receive any number of orders simultaneously, without automated systems, other orders may delay yet the customers is waiting for the delivery of goods .To get competent workers in the warehouse, new employees should always pass through a temporary employment period to determine their efficiency and skills in production before getting a permanent employment(Marren, 2012). These employees should be trained from time to time to enhance and broaden their skills. The supply management should always ensure that there is sufficient inventory in the warehouse to avoid cases whereby a customer places an order and it is not within the warehouse (“Journal of Family Business Strategy: 2013 Call for Papers”, 2013). All goods in the warehouse should always be inspected in prior time to ensure that they are all in a good condition and the required quality and quantity so that when a buyer places orders; a final inspection is done then shipped.
During any production of goods and services, the ultimate person to be considered is the customer. In any business, customers are always right and they should be satisfied with the kind of services they get. Amazon Company should always keep its roots on the ground to know the taste and preferences of their customers (“Journal of Family Business Strategy: 2012 Call for Papers”, 2012). This will help the business know the kind of goods to keep in the warehouse as it awaits orders from buyers. Amazon should be well informed of the cost of similar goods by other producers to be able to know how much to charge their customers. Buyers always want affordable prices of high quality; therefore, goods produced should be of high quality to meet the demands of consumers. Amazon’s customer are all likely to be literate and have a class of taste, therefore goods in the warehouse should be produced to match the preference of the prospective customers (Soucy, 2011). Amazon should always inspect and service their computers and Websites to ensure that at no point, the technology being used fails the company. The way of placing orders should be simple to the customer because complicated system may confuse the buyer. All goods available in the warehouse should also be posted with their description so that customers know what exactly to order. There should be a wide range of the same product for buyers to have larger range of making choices according to the prices of goods, quality and quantity.
Improving Delivery Time and Efficiency
integration are the process of bringing different elements, combining them to make a complete unit. During supply, there are different elements that should be considered and synchronized. New technology should be brought into the picture and applied together with other elements such as political, social and economic matters (Soucy, 2011). To create a good supply network, the economy should be considered to ensure that funds used in the processes are reduced as much as possible Proper modes of transport during supply should be used for example, the company wants to supply goods to other countries, the air should be used because it is faster and a large amount of goods should be transported at once to avoid wastage of resources With the new technology, almost every part of the world can access internet hence the company should create a website where people order their goods. Amazon has a website in place where its customers can place orders of goods and services to be provided for them. This company should also create a platform where its customers can interact, share ideas and opinions. These communication platforms will help the company know the real feelings of their customers by the way the talk. This will enable Amazon to know where to correct their mistakes and get a chance to clarify things with their customers (Soucy, 2011). When goods re ordered, the company should analyze and see products that need to be shipped to the same area or close areas so that they can be sent at once to avoid too much expenditure by sending goods one by one.
Company sustainability creates a long term survival of the business, the present and the future of a business can be run smoothly so as to meet objectives and goals. There should be strategies put in place that will make Amazon.com be able to run for long. Amazon should ensure that is has organized itself to be able to sustain future changes in environment, economy and change in technology .Product produced as per now by Amazon suits the current environment, economy and technology but what of the future? Things have been changing from time to time, if one looks back into hundred years ago, the way of human living and operations were quite different from now(“Journal of Family Business Strategy: 2013 Call for Papers”, 2013). Things have been improved and changed for instance; Amazon started as a book selling store to the now video, audio and games business. this is because less people are now interested in books unless they are carrying out coursework .Amazon should therefore employ innovators to keep improving their products and bring in new ideas that are likely to be in place in the coming years For the company to be able to sustain changes, it should be changing the way of its production and supply (Soucy, 2011). New techniques should be employed in the supply chain as well. Sociologist should be consulted to know how the needs of people from different places vary from time to time. If all these are carefully implemented and thinking ahead, the company shall be able to supply its products no matter the changes that might occur in future.
Operational Management and Strategic Organization
Procurement is the process by which a company acquires goods or services by finding source of goods, agreeing on terms from external sources. It could be done through competitive bidding or giving out tenders to prospective suppliers. Procurement involves selection of vendors, establishing terms of payment ,vetting ,selection, negotiation of contracts and the final process if actual purchasing of goods. Amazon.com caries out procurement process to acquire necessary equipment used in the production of goods and services. There are policies provided by Amazon to its suppliers. Any supplier to this company should adhere to the rules and regulations governing its local and global business (Soucy, 2011). Since it manufactures a range of products, it means that they have suppliers from different parts. Amazon should therefore make sure that all these suppliers consider human rights, labor health and suppliers should make sure that they deal with products that are environmentally friendly. Once a requirement has been identified in the manufacturing company of Amazon, authorization of purchase is given about and then approved by the procurement manager whereby the procurement process begins. Suppliers are identified and then receipts and quotations are inquired. The company then negotiates for the prices of goods .the vendor is then selected followed by acknowledgement of purchase order .An advance shipment notice follow the order as well as goods receipts and invoice recording and the supplier are finally paid (Muntean, 2018). Because of the many suppliers it has, some of them require order through online means .Amazon should make sure that they are always up to date on different ways of making purchases. The company also should ensure that they have an exact quantity of supplies needed and the change in consumer requirements. Without this knowledge, products procured for could be of no essence to the company due to the fluctuation in the consumer preferences. To avoid ordering the wrong goods, the identification of requirement should be critical to know if the real amount of goods needed and the essence of the requirement in the manufacturing. Once goods have been ordered, thorough inspection of goods should be done to ensure that it meets the requirement by the company in terms of quality, quantity and description. After products have been manufactured to the desired final goods, they are stored, taken account of then supplied (“Journal of Family Business Strategy: 2013 Call for Papers”, 2013). The company which is the main producer supplies it to other warehouses who buy goods in wholesale and later supply to individual consumers. During supply, there are various aspects that should be considered such as respect for human rights (Soucy, 2011). Suppliers should be handled with respect in accordance to rules governing employer-employee relations. Payments should be made with appropriateness, ethical issues should be observed and avoid child labor at any point. According to dynamic alignment model, companies should ensure that they adapt to the continuously changing business environment to be able to sustain itself in future. Companies should effectively align managers, leaders and its workers in a clear and wise strategy. Each and everyone involved in the company’s procurement and supply should be put there strategically in that they fit to work in terms of their capabilities and talents. They should be able to work under different environment since the business environment keeps changing from time to time. To operate in the dynamic business world, Amazon Company should build strategic plans to establish goals, well organized way of doing things and accountabilities that work towards improving performance(Muntean, 2018).. The company should make it possible for employees to accomplish goals by providing flexible tools and resources. The managers and leaders should live in their values to act as role models to the rest of the staff, meet their achievements so that when they are challenging the employees, they are in a position to correct them and motivate. The following illustration is the dynamic alignment model.
Customer Satisfaction and Service
as time goes, there are technological changes; there is cultural shift in the way the consumers think, does his or her things and opinion changes over time(Muntean, 2018).. In the world of business, the customer is always right no matter how they prefer things done, business people have to be flexible enough to move with the changes in priority by consumers. This is why there should be improvement programs to make the company moving and be able to sustain it in future (“Journal of Family Business Strategy: 2013 Call for Papers”, 2013). The Company needs to look into its way of operation, process of production and infrastructure critically to note down things that need to change or improve because there is change in technology. Some things tend to become obsolete as time goes by which could later inconvenience the company. Investment of time, resources and energy should be continuously improving. The culture and traditions of Amazon Company should also undergo improving strategies. To make successful improvement programs, the company should advance its leadership organization. There should be leaders that work towards future better performance of the company. The leaders should be reasonable people who have independent minds, embrace teamwork and make sober decisions Leaders should exhibit behaviors that that work towards reaching the goals and can set good examples to be emulated by their juniors. If the leaders do not initiatives put in place to improve company behaviors, it is impossible for employees to accomplish the company’s targets(Soucy, 2011). This company should focus on prevention of problems rather than waiting until it occurs then it looks for solution (“Journal of Family Business Strategy: 2013 Call for Papers”, 2013). The managers should work smart and not hard, by this it means that they should be able to look in to root cause of a problem instead of just fixing it. Some cultures of rewarding employees who solve problems should be avoided and instead, encourage and reward those who find the causes of problems. Solving something just works temporarily but once a root cause has been established, the effects are long term.
The company has to have a continuous focus and should not be destructed or stopped by smaller challenges. Once a goal has been set, it should be given attention until it is accomplished. Efforts towards improving an organization should be continuous and permanent. In the process of program improvement working, pieces of the process should be optimized instead of looking at the process as a whole. As much as the company focuses on a bigger thing, strategies put in place should be to improve from one level to another. There is no way accompany can wake up one day and change everything at once. Auditing can be done quarterly so as to follow up the improvement programs (Muntean, 2018). This means that the process shall be embraced at all levels of production and positions of everyone working in the company.
Amazon.com focuses on providing its employees with trainings and tools so that they can perform their duties competently. These include providing safety during operations and reduce the risk of harm (Choi & Li, 2015). If the strategy of updating and checking machines and equipment is implemented, the company shall be able to avoid any accidents in future .Regular training of employees will keep them up to date and make them improve on the skills and quality of services. Training also helps employees know how to relate with each other which brings about teamwork and unity. Process and routines are important for the continuous effort of making the company better in future. When the process of implementing plans is kept continuous, the company will use less effort to reach its goals because the activities are distributed over a period of time (Wagner & Svensson, 2014). Programs help the company achieve its goals within a shorter period because the plans shall be followed. If the company targets something at the end of the year, strategic programs will propel it. With the continuous improvement of technology, there is change in the descriptions of goods demanded. Therefore, goods in the warehouse should fit the technology in existence and meet the demands of the consumers (Choi & Li, 2015). Therefore if the infrastructure and production equipment is updated, Amazon shall be able to produce up to date product hence sustaining the changing of environment. Planning future activities in advance will make the company competitive enough in the supply market (Muntean, 2018). When making procurement, goods ordered shall be appropriate for production of improved quality and efficient products.
Integration of Different Elements
Conclusion
In any company that deals with production of goods or services, procurement and supply is a mandatory. Raw materials, equipment and services required in production need to be purchased (Tombs & McColl-Kennedy, 2013). For instance, Amazon is company that provides its goods and services online but the production is done in the warehouse therefore, there is need to acquire raw materials and services from suppliers, the purchase process is procurement (Cucchiella & Koh, 2012). After final products are out, there is need to supply to consumers who are in various parts of the world therefore, these goods go through different people at different levels before reaching the final person who is the customer(“Journal of Family Business Strategy: 2013 Call for Papers”, 2013). The process may have some loopholes, the have been analyzed in the content above and recommendations have been provided. If all of them are implemented and corrections are done where necessary, this company will be in a better place and able to compete in the market with other manufactures of similar products.
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