Strategic Supply Chain Management and Logistics

  1. Home
  2. AllAssignmentHelp Samples
  3. Management
  4. Strategic Supply Chain Management and Logistics
588 59 12 3015

Requirement

Strategic Supply Chain Management and Logistics

Introduction 

Amazon was launched in 1995, and it was one of the pioneer shopping sites. Since then, it has remained in the top rankers as the best retail sites on the internet, and almost all online retailers regard Amazon as the universal model for the successful Internet retailing. The distinctive advantage that Amazon has is that it uses a collaborative filtering technology.  Since the beginning, the company has taken care of its logistics of the distribution of giving the customers a unique online retail experience. A major portion of the success of Amazon came from the effective supply chain management.  In 2015, it topped Gartner Inc.’s Top 25 Supply Chains, beating out McDonalds and Unilever to head the field. This was possible due to its continuous efforts towards fostering innovation and adopting a customer-centric approach so that frugality could be emphasized and the company could work from the customer backward (Christopher, 2016). 

At Allassignmenthelp.com, students can get excellent management assignment help from the best and most experienced writers. Whether you need supply chain management assignment help or logistic supply chain assignment help. We can provide you with comprehensive academic assistance at a low and affordable cost.

The relationship between supply chain management (SCM) and organizational business objectives
The importance of effective supply chain management in achieving organizational objectives

SCM is that activity which helps in integrating all the activities that are involved in the supply of goods to the final customer, and it also takes care of the fact that the customers are satisfied with the product. When the customers are given the products on time, and they are satisfied with the product in terms of its quality, usability, etc. then it directly impacts the bottom line of the company i.e. helps in earning a higher amount of profit. Then effective supply chain management also helps in ensuring that the process of providing the goods and services to the customers is carried out in cost effective manner and thereby it has an impact on the profit margin of the  company, its reputation, progress, etc.  Therefore, for achieving the mission and objectives, the companies need to have an effective and functional SCM. 
The effective SCM of Amazon has made it the top online retailer; it is earning a huge profit, its reputation is among the biggest online retailers, and it is also the top preference of customers all over the world (Coyle, 2016). 

The process of supply chain management helps in connecting all the functions of business. It acts as a link for assisting the organizations in the core operations of business i.e. giving the goods and services to the end consumers. The SCM of Amazon integrates its business functions as when the sales and marketing team forecasts their sales and presents it to the management, it is presented to the supply chain manager so that he can estimate that whether the available feet would meet the forecasted sales or will there be additional capital required (Ellram,  2014). Then supply chain manager coordinates with the finance department for preparing the budget and tries to seek the approval of management for the further investment. In a similar way, the supply chain manager also coordinates with operations department and the HR department for estimating that whether the existing manpower would be enough to supply the products to the end customers or not. So it can be said that every activity at Amazon is linked to SCM. 

The key drivers for achieving an integrated supply chain strategy in an organization

There are external as well as internal drivers that help in integrating the supply chain strategy in Amazon. One is customer relationship management. With this, the information related to the availability of product, status of the order, delivery, etc. can be given to the customers. The complaints of the customers can be addressed and within a short time, the complaints can be resolved too. It also helps in processing the orders of the customer in a timely manner. Another driver is the relationship management with the supplier. The supplier is able to check the status of the stock, and he can arrange the replenishments in advance by anticipating the orders that are required in the future. Also, the suppliers can know about the goods and orders that failed so that they can be returned immediately. These were the internal drivers. The external drivers could be cost effectiveness as when the processes are integrated; the communication becomes better and errors are minimized. Hence the cost of the company is saved. There is an improvement in the quality of service as the people who give after sales service know that what the customers actually require and hence they improve their services in the future. There are few of the drivers that help Amazon in achieving the integrated supply chain (Heizer,  2014). 
Use of information technology to optimize supplier relationships in an organization
Evaluation of the effectiveness of strategies used by Amazon to maintain supplier relationships
The strategies used by Amazon for maintaining the relations with the suppliers are very effective. They communicate with the suppliers continuously to keep them informed about the requirements of the products, default in the products, etc. (Christopher, 2016). They enter into the special deal with them like buying the stock at fewer prices and then they held it for more time. Then Amazon discusses the information with the suppliers at the SKU level. With these strategies, the suppliers have recognized Amazon as an important customer worldwide. The relations have become mature, and the suppliers feel that they have built a positive relation with the company. This reaction of the suppliers has shown that the strategies have been successful. Also, the continuous growth of the company is an indicator that the strategies are effective. 

Use of information technology in creating strategies to develop Amazon’s relationship with its supplier’s tactics

With IT, the communication with the supplier becomes more effective as the demand and supply can be matched more properly, the costs reduces, and the integration process between Amazon and its suppliers becomes more supportive. The transaction costs between the company and suppliers get reduced. Thus potential opportunistic behavior is observed. The current trends of the market can be analyzed with the IT and hence the strategies are built in the company that matches the current trends (Ellram,  2014). This helps the company and the suppliers know about what they can expect from their activities. 

Developing systems to maintain organization’s relationship with its suppliers

For Amazon to maintain these relations with the suppliers, it should invest in software related to supplier relationship management. It should have features or applications that can perform tasks on behalf of the company and gives the suppliers updated profiles about the products, the performance of the supplier could be monitored (Yan,  2014).  Also, the new suppliers could be accommodated in the new system. When the company acquires a number of vendors, it has to keep a track of all of them which is a very difficult task. So the new software can acquire them, keep their track. With the software put in place, the information of the supplier can be kept at one centralized place. Though
Amazon has this kind of system but it should be upgraded for better performance. 
The role of information technology in supply chain management
Role of information technology in assisting integration of different parts of the supply chain of Amazon

With the advancement in technology, Amazon has been able to avail the necessary information from the different departments in their premises. The activities of the company can be coordinated for the management of supply chain. Then most importantly, it has reduced the costs that the company had to incur in doing all such things. If the supply chain manager has to get any information related to equipment, product, delivery, budget, etc. he can do it easily with the use if IT and this can be done from one place, he need not have to travel to various locations to gather the required information. With IT, the customers, retailers, distribution centers, assembly of products, and the suppliers can be linked. Each can know the status of each other. Hence it makes the communication better, and all the departments can know that to what extent the process have been completed in the company (Coyle,  2016). 

Evaluation of the way information technology has contributed to the management of the supply chain of Amazon

The capabilities of IT infrastructure have given a competitive position to the company Amazon. It has reduced the cycle time of the supply chain processes; it has enabled in designing the cross-functional processes. Then it has contributed to customer satisfaction too because the customers can take whatever information he wishes to take regarding the product, its delivery, he can also track the product and in case of any confusion, he can contact the concerned authority immediately so that his problem gets resolved in a timely manner (Wisner,  2014). In supply chain management, the entire process has to be coordinated but the managers cannot be present at all processes so with IT, he can know the status at all ends. This makes the management much simpler and effective. 

Assessment of the effectiveness of information technology in managing the supply chain of Amazon

Amazon is an online retailer. All its processes are managed by the use of information technology including the supply chain.  From the time customer places an order till the time it is delivered, all the things work in Amazon with the help of IT. The system is very effective as when the order is placed; it is prompted to the warehouse of the company and the worker working there matches the order with the bar code. The product which the customer has ordered is placed on the conveyor, and it is sent to the delivery center. During this process it is the IT that enables all the things, like creating bar codes, sending the products, making the distributors know which product is to be sent at what place, etc. Since Amazon has been a successful retailer all these years so it shows that the IT has been effective in managing the supply chain. 

The role of logistics and procurement in supply chain management
The role of logistics in supply chain management in Amazon

The management of logistics is a part of SCM that helps in planning, implementing and controlling the efficient, effective, forward and reverse flow and storage of products and services between the origin point of consumption so that the requirements of the customers could be met. It is the responsibility of logistics to get the product in a right way; the product should also be right, and it should be obtained in right quantity and quality too. Also, it should be at a right place and at the right cost. In Amazon, there is an in-house logistics and warehouse department so that the movement of the capital goods and services could be facilitated. The dependence of Amazon on the logistics department is very heavy for the movement of products and the movement of employees (Monczka, 2015). 

Evaluation of procurement practices in Amazon

Procurement means the buying of goods and services from any source which is external. In Amazon, the technology is used in all aspects, and it has given an edge to the company’s procurement for making it more efficient and cost effective. It has adopted practices like e-procurement, e-invoicing, etc. it has suppliers all over the world that keep in touch with the company through various means and helps it to grow. These practices are very effective because they have enabled the company in getting the products on time and they also are able to deliver it on time. 
The factors that must be considered when improving logistics and procurement practices in Amazon
There is no company which is perfect in everything. Always, there is room for some kind of improvement which can be dome if the company is thinking out of the box and incorporating new ideas and processes. 
One factor is flexibility. The company should give scope to their employees so that they can come up with new ideas and they can incorporate new things in the company. Then another factor is outsourcing that will help the company to save costs, get the benefit of specialization and it will be able to focus on its core competencies. Vertical integration will also help the company in improving its logistics and procurement as the company will be managing all processes itself and there will not be any need to rely on the other parties (Richards,  2015). 

Strategy to improve an organization’s supply chain
Planning of the strategy to improve Amazon’s supply chain

The supply chain of Amazon could be improved by identifying the innovation partners who will help in the introduction of innovation in the processes of the company, its services or the market strategies. Then the company can segment the supply base which will help in acting as a fundamental skill. The suppliers need to be segmented too so that effectiveness of the company could be increased. The employees should be involved at all the stages of the supply chain management process so that needs of customers could be known and accordingly, the company can make changes in its processes (Ross, 2016). Then a single supply chain solution should be considered by the company and apply it everywhere to reduce the confusion and standardize the processes. The performance of supply chain partners will be monitored so that the company is not caught off guard. 

Assessment of how a supply chain improvement strategy will benefit overall business performance in Amazon

Improvement in the strategy will help in integrating all the activities that are involved in the supply of goods to the final customer, and it will take care of the fact that the customers are satisfied with the product. When the customers are given the products on time, and they are satisfied with the product in terms of its quality, usability, etc. then it directly impacts the bottom line of the company i.e. helps in earning a higher amount of profit  (Simpson,  2015). Then effective supply chain management strategy will also help in ensuring that the process of providing the goods and services to the customers is carried out in cost effective manner and thereby it will have  an impact on the profit margin of the  company, its reputation, progress, etc.   

Overcoming the barriers when implementing a supply chain improvement strategy

The strategy should aim at benefiting other departments as well as it is a barrier that only one department will be benefitted. Then the focus of the strategy should be long term and not short term otherwise, it will not get approved by the management. The technology that has been planned should be compatible, and it should not be obsolete and costly. The risk assessment should be done beforehand. 

Conclusion

It can be concluded that there is a strong relationship between supply chain management (SCM) and organizational business objectives of a company. Information technology has optimized supplier relationships in Amazon, and it has played a major role in the supply chain management. Finally, a strategy to improve Amazon’s supply chain has been planned.  

Place Order For A Top Grade Assignment Now

We have some amazing discount offers running for the students

Place Your Order

References

  • Christopher, M., 2016. Logistics & supply chain management. Pearson Higher Ed.

  • Coyle, J.J., Langley, C.J., Novack, R.A. and Gibson, B., 2016. Supply chain management: a logistics perspective. Nelson Education.

  • Ellram, L.M. and Cooper, M.C., 2014. Supply chain management: It's all about the journey, not the destination. Journal of Supply Chain Management,50(1), pp.8-20.

  • Heizer, J., Render, B. and Munson, C., 2016. Principles of operations management: sustainability and supply chain management. Pearson Higher Ed.

  • Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015.Purchasing and supply chain management. Cengage Learning.

  • Richards, M., 2015. Supply Chain Implications In Regards To Consumer Behavior In Online Retail: Site-To-Store Versus Direct Shipping (Doctoral dissertation, Texas Christian University Fort Worth, Texas).

  • Ross, D.F., 2016. Introduction to e-supply chain management: engaging technology to build market-winning business partnerships. CRC Press.

  • Simpson, D., Meredith, J., Boyer, K., Dilts, D., Ellram, L.M. and Leong, G.K., 2015. Professional, research, and publishing trends in operations and supply chain management. Journal of Supply Chain Management, 51(3), pp.87-100.

  • Wisner, J.D., Tan, K.C. and Leong, G.K., 2014. Principles of supply chain management: a balanced approach. Cengage Learning.

  • Yan, M.R., Chien, K.M. and Yang, T.N., 2016. Green Component Procurement Collaboration for Improving Supply Chain Management in the High Technology Industries: A Case Study from the Systems Perspective.Sustainability, 8(2), p.105.

AllAssignmentHelp Logo

Give your grades a boost

Just share your requirements and get customized solutions on time.

  • 1,168,768 Orders
  • 4.9/5 Overall Rating
  • 5,052 Experts
Citation Generator

Best Online Citation Generator Tool

Eliminate writing errors with AllAssignmentHelp

Try Now

Grammar Checker

Instant Grammar Checker

Check Spell & Sentence Correction with AllAssignmentHelp

Try Now

Plagiarism Checker

Plagiarism Detection

Check Your writing for plagiarism and correct grammar.

Try Now

Word Counter

Word Counter

Stay within the word limits of your homework

Try Now

Get Quality Assignment Without Paying Upfront

Hire World's #1 Assignment Help Company

Place Your Order