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This week, focus your analysis on the procurement or acquisition practices of the company you selected for the final project and the types of materials that the company uses. Also, analyze where those materials are sourced, how they are delivered, and what the overall supply chain operations of the company are. Citation format is APA, include references.+400 words
In recent years, Amazon has emerged as one of the leading companies in the e-commerce industry. Consequently, it is no surprise that Amazon’s procurement or acquisition practices are highly optimized and efficient. According to Geri et al.(2018), Amazon’s streamlined processes make “it possible for customers to obtain a wide range of products from thousands of vendors within a short span of time”.
To meet customer demands, Amazon sources materials from suppliers on an international basis. The company typically uses its own logistics network, Fulfillment by Amazon (FBA), to receive goods from suppliers and deliver them directly to customers across the globe within 48 hours (Giri et al., 2018). Additionally, Amazon has implemented several strategies such as Vendor Managed Inventory (VMI) which allow vendors to “maintain stock levels at different warehouses so that orders can be fulfilled rapidly” (Geri et al., 2018). This eliminates delays caused by slow transportation which allows Amazon to maintain high levels of customer satisfaction.
Furthermore, more recently, in order to keep up with demand during the COVID-19 pandemic, Amazon established additional supply chain initiatives such as ‘Buy Now Pickup Later'(Deloitte Insights 2020).This allowed customers who wished notto receive their packages at home due to safety precautions ,an alternate wayof collecting their purchases curbside or through locker pick ups. Through this strategyAmazon was abletoestablish contactless delivery methods while still providingcustomers with convenient access tobasicnecessities such as groceries and household items during times of crisis.
Overall ,Amazon recognizes the importanceof effectively managingits supply chain operationsand takes all necessary measures toprovide superior serviceservices for its customers . In doing so ,the company ensures that its procurement processes remain well organized and enable itsto fulfill orders quicklywhile remaining cost effective . As statedby Deloitte insights(2020), “through soundsupply chain management[Amazon]has set itself apartfrom traditional retailers”. Thereby proving tha tit is indeed committedtoprocess optimizationand delivering quality servicesin addition tomaintaining sustainability .
References:
Deloitte Insights(2020) How Retailers Are Redefining Supply Chain Management in Response ToCOVID 19 Retrieved from: https://www2.deloitte.com/us/en/insights/focus/industry-4-0/retail-redefined-supply-chain-management-covid19.html Giri B C., Natarajan R & Yadav M S.(2018) A study on E commerce:An Overview Retrieved From :https://ijert.org/view_paper?manuscript=IJERTV7IS030250