Posted on: 9th Aug 2021

Evaluation of Amazon Supply Chain Management essay

In this paper, we will evaluate the success of Amazon’s Supply Chain Management in regards to its supply chain. We will be looking at a variety of factors such as the company’s organizational structure, how they handle inventory, and their system for transportation. In this essay, Singapore students will learn an evaluation of Amazon Supply Chain Management and what it has done right before moving on to where it can improve.

Evaluation of Amazon Supply Chain Management essay

Background of Amazon.Com is an online retailer of books, music, movies, and other media products and services. It was started in 1994 by Jeff Bezos to sell books on the World Wide Web with a goal “to become the world’s largest bookstore.”

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Bezos decided that making this site available as a multilingual site would provide the company more traction across Europe and Asia, so he acquired translation software to produce content globally from 2007 onward. The website relied originally on two offshore centers for the distribution of goods – one in New Jersey and one in Kentucky – but these were closed down when Amazon faced criticism over Singapore job losses.

In 1995 they gradually moved away from retailing physical books to just acting as an agent for suppliers such as Ingram Book Group and Baker & Taylor, as well as a variety of independent booksellers.

Products and Services at Amazon

Find, buy or sell almost anything you want online. With millions of products to choose from and new ones added every day. Singapore students find just what you’re looking for. In addition to the selection of a variety of retail categories, including books, media, fashion items, baby clothes, and much more from third-party sellers with prices typically lower than on other websites on the internet!

You can use our search tools to filter and sort results or our Recommendations engine will suggest similar items that we think may be right for your buying needs. You can quickly narrow it down by price range as well as order or package quantity before making a purchase decision.

How Amazon is changing supply chain management?

Amazon’s model is now being copied around the world which has led to a rapid expansion of e-commerce. This is not just changing how we buy things, but giving rise to a new kind of consumer who not only shops for themselves but also shops for others. E-commerce in Singapore is expected to overtake Japan and America by billion-dollar numbers this year as the middle class emerges and more people join shopping online worldwide.

This shift away from traditional brick and mortar stores has been apparent for many years, with Singaporean malls increasingly becoming abandoned cookie cutters modeled after each other where no individual store stands out from another. In contrast, e-commerce sites like Amazon offer customers one-click purchasing without carrying inventory or additional real estate costs.

Read this: A summary of Supply Chain Management (SCM)

Amazon supply chain process

Amazon’s supply chain process has evolved over time, growing from a small group of Singaporean employees and contractors to the largest in the world. The three basic tenets of Amazon that greatly contribute to its rapid expansion are speed, selection, and low prices.

Speed: Speed is at the core of how Operations designs facilities and ensures they are operating efficiently by optimizing inventories for each platform through predictive analytics and machinery innovation. For example when an emergency occurs where demand spikes rapidly unexpected its team responds with resources available on-site while taking other steps such as ramping up activity with robots or drones packing products.

Selection: Selections vary by geographical location due to customer preferences but the fact remains that US customers can buy items from retailers such as Nike, Adidas, and Nike Kids that they would not be able to buy in some other parts of the world.

Low Prices: Amazon provides more discounts than any other retailer on average across all products it sells because its goal is to offer a wide range of items at lower prices which means selling less expensively and making up for it through volume sales.

Some commentators have suggested that this will lead to an “Amazon tax” as many Singaporean businesses move towards e-commerce, but there are also fears about how the growth could eventually threaten employment opportunities or put pressure on suppliers who rely on physical stores.

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Importance of Logistics in Supply Chain Management

Logistics is the most important aspect of supply chain management because, without it, all other operations and systems would be pointless. The logistic framework allows each component to work together to greatly increase efficiency. If just one of these components fails or slows down, the others will do so too. It also controls how quickly your orders are received and fulfilled by estimating demand for particular products, managing inventory levels regularly, etc.

So logistics is pivotal in any well-functioning business. This problem gets even more difficult with increasing international trade (imports). Supply chains that operate between regions need a globally organized system that also takes into account different ways of organizing production and logistical procedures when distributing goods from one region to another.

How can amazon improve its supply chain?

Amazon’s supply chain can be improved in two ways. The first is by investing in infrastructure or incentives for third-party Singaporean retailers, which will improve Amazon’s distribution backbone and may allow it to avoid the chaos that has plagued competitors during this year’s Black Friday.

And if anything goes wrong, they can just blame someone else! We’ve seen that before with Toys “R” Us when Amazon picked up on the toy company’s struggle and swooped in to fulfill a high volume of product orders.

The second key way Amazon can improve its supply chain is by diversifying its product offerings with an eye on future needs like health care, financial services, and education all sectors expected to grow considerably over the next decade as baby boomers retire.

What are some of the challenges they face in their supply chain management?

Some of the major challenges faced in supply chain management are sourcing materials or finding the resources needed to create products, forecasting demand for inventory and the financial impact that these fluctuations can have on a company in Singapore, and maximizing just-in-time inventory.

There are also challenges with maintaining accurate inventory records and securing products through transport. Of course, there is always risk associated with production delays due to accidents, natural disasters, or other unforeseen events (e.g., strikes).

But many times one of the biggest challenges they face in their supply chain management is a human error within their company. Since humans are not perfect it’s common for mistakes to happen because everyone makes mistakes but what some companies do that helps protect them from human error is validate all of their data and make sure it’s correct.

Concluding statement about the evaluation of Amazon Supply Chain Management’s supply chain management is very complicated, and it’s a lot more complicated than just administering an inventory or maximizing profit margins. Amazon has invested in fulfillment centers that minimize shipping costs and make customers happy, though these are by no means perfect.

There have been criticisms of inadequate communication from the company to its suppliers as well as intermittent order fulfillment when Amazon creates new warehouses or relies on third-party sellers for inventory among many other things.

Amazon remains committed to improving as they always have and will most likely continue to do so for years to come.

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Author Bio:

Laura Tan

I am an academic writer since 2003 and associated with Singapore Assignment Help. I have expertise in making dissertation proposal. Till now i helped more than 2000 Singaporean and Malaysian Students in completing their masters dissertations thesis and other academic papers.