University of Phoenix Supply Chain Plan Amazon Company Diagram & Analysis Paper

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yr05sh

Business Finance

University of Phoenix

Description

Create a diagram of the supply chain plan using one of the following tools:

  • Excel
  • PowerPoint
  • Visio
  • PictoGram
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  • Other faculty-approved platform

Write an 875-word analysis of the supply chain. Include the following:

  • Value chain and flow of structure 
  • Inputs
  • Outputs, including customer service structure 
  • Inventory points and forecasting
  • Sourcing activities
  • Risks
  • Locations
  • Logistics

Unformatted Attachment Preview

Running head: OPERATIONS PLAN 1 Operations Plan – Amazon Company Leydis Fuste 2/16/2020 OPERATIONS PLAN 2 Operations Plan – Amazon Company My choice of organization for the business plan is Amazon Company. Amazon has emerged as a giant global retailer in the e-commerce market for over twenty-five years (Brovelli, Sun, & Yordanov, 2020). The most significant factor for the growth of Amazon is its appealing customer service, which has highly contributed to the rapid growth of the organization. Besides, the company also provides high-quality products that have been recognized in the market. In this paper, I will focus on products, services, and financing as the quantitative elements. In this case, I have used the seller app to unveil the trends and predictions on Amazon. Amazon faces a long term debt related to customer service costs and delivery (Brovelli, Sun, & Yordanov, 2020). The increase in the company's operational management is due to its focus on delivering all-time clock services to its customers, which is very costly. Amazon has to keep its eye on the trending products and new services in the market to dominate in the e-commerce sector as it also faces competition from other organizations such as target.com and Walmart. Using the seller app, Amazon products and services' future demand is very high, and Amazon is likely to dominate the market for more years. Besides, as the organization continues to increase its volume, it will also continue to dominate as the leading online market. The analytical data obtained from the App indicates that in the future, sellers at Amazon Company will struggle to find products and find it hard to stay focused on Amazon services. Hence, sellers at Amazon are looking for experts to advise on how to handle product research effectively. Due to its wide usage globally, sellers and vendors at Amazon will struggle to find the right and available resources in the market. My decision based on the collected data on Amazon is to implement a compelling point of sale system that will focus on the company's services, products, and financing systems. OPERATIONS PLAN 3 Amazon has implemented the Amazon forecast strategy, a fully managed service that applies machine learning algorithms and statistical data to deliver accurate and timely forecasts (Sarah, Lee, & Kim, 2018). Using the Amazon forecast, the company will accurately predict the demand allowing sellers to vary their pricing and inventory in various stores. The Amazon forecast effectively predicts the products and services as Amazon also uses business intelligence to predict customer behaviors and offer more unified and updated benefits to its customers. However, a practical point of sale system will help the company handle all the cash flow issues, hence avoiding the enormous debts associated with customer service and delivery costs. However, every system has its weakness and strengths. In this case, developing a compelling point of sale system for the organization will aid in operating and growing the business from any place using any electronic device. This will make it easy for Amazon customers to use the organization. The system will also help the organization avoid long debts and ensure adequate cash flow for the course, hence growing its profit. However, the course's main challenge is that an effective POS system is only applicable using android devices. Also, the system may be complicated, requiring the users to ask for guidance every time they need to use it, making it hard for customers to use the system hence a downturn for Amazon. OPERATIONS PLAN 4 References Brovelli, M. A., Sun, Y., & Yordanov, V. (2020). Monitoring forest change in the amazon using multi-temporal remote sensing data and machine learning classification on Google Earth Engine. ISPRS International Journal of GeoInformation, 9(10), 580. Sarah, A., Lee, K., & Kim, H. (2018, August). Last model to forecast time series for EC2 cloud price. In 2018 IEEE 16th Intl Conf on Dependable, Autonomic and Secure Computing, 16th Intl Conf on Pervasive Intelligence and Computing, 4th Intl Conf on Big Data Intelligence and Computing and Cyber Science and Technology Congress (DASC/PiCom/DataCom/CyberSciTech) (pp. 1085-1088). IEEE.
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Explanation & Answer

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Running Head: SUPPLY CHAIN PLAN

Supply Chain Plan – Amazon Company
Name
2/16/2020

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SUPPLY CHAIN PLAN
Supply Chain Plan - Amazon Company

Amazon is a cloud computing and e-commerce company. It has an impressive supply chain
network which helps it to make smarter decisions concerning supply chain management. Its supply
chain is as fast as the internet. The success factor of Amazon depends on its delivery and
distribution network and superior customer service. The company has transformed every aspect of
its supply chain including inventory, warehousing, prices, and delivery times. This paper will
provide an insight into the supply chain plan of Amazon containing value-chain analysis, inputs,
outputs, inventory, forecasting, sourcing, risks, locations, and logistics.
Amazon has a wide network of its supply chain and all its success rests on efficient supply
chain management. Value chain analysis of Amazon provides an analytical framework of the
business activities which are creating competitive advantage and value proposition for customers
(Lincoln IV, 2018). Below is a framework of the value chain and flow of structure of Amazon.

Inbound Logistics
Operations
Outbound Logistics
Marketing and Sales
Customer Service

The inbound logistics of Amazon is based on the Fulfillment by Amazon (FBA). At this
point, economies of scale is an important factor for value creation. Amazon is bringing in-sourcing
logistics. Through in-source logistic centers, sellers store their inventory in Amazon’s warehouse
named as FBA centers and deliver their products anywhere in the world and Amazon takes full

SUPPLY CHAIN PLAN

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responsibility for customer service, logistics, and customer returns. Sellers send their products to
Amazon’s warehouses which are located in high-demand areas, basically in high metropolitan
areas where products are placed closer to customers. Amazon spreads the inventory in all
warehouses steadily where it is made available to prime customers. Products are packed and
labeled by employees or robots (Dudovskiy, 2020). When a customer places an order, the product
is sorted out from the storage system and made available for delivery. If customers will order an
Amazon-owned product and an FBA product, Amazon will deliver both products in the same box
and will provide free shipping, two-day shipping, or other benefits.
Amazon runs its operations in 3 segments i.e. in North America, International, and Amazon
web services. Amazon also offers database, computing, and storage services to academic
institutions, start-up firms, and the government. Amazon’s outbound logistics integrates 109
fulfillment centers, makes outsourced arrangements, digital delivery, and physical stores
(Dudovskiy, 2020). Amazon’s logistics network is comprised of vans, ships, trucks, trains, and
planes. It competes with UPS and FedEx for international deliveries. Its marketing and selling
expenses have been increasing for the past 7 years i.e. 13.8 billion dollars in 2018. The company
is spending more on marketing as compared to Kroger, Best Buy, Wal-Mart, and Target (Green,
2017). It’s marketi...


Anonymous
Excellent resource! Really helped me get the gist of things.

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