Process management
Amazon is an internet-based retailer and web service provider with millions of customers. Its headquarters are located in Seattle, Washington. It has revolutionized online purchasing by making delivery quick, inexpensive, and painless for customers. This essay will focus on the process and location strategies it has put in place to increase its sales. Process management strategy is the organization’s plan for converting its available resources into tangible goods and services. Like any other organization, Amazon’s goal is to create a process that can supply products that meet their customer’s needs while staying within their budget and other managerial requirements. An organization’s choice of process strategy has long-term effects and results in its operations, from costs to the quality of goods and services they provide (Gunasekaran et al., 2018). Customers may order things from the convenience of their own homes, and the goods are delivered to their houses, thanks to Amazon’s automation.
Customers can check out the goods available on the amazon.com website, select the type they want, and pay for it. Processes used by Amazon are primarily automated to ensure efficiency and faster manufacturing due to the high volume and variety of orders they get (Wieland, 2021). Repetitive focus comprises employing previously prepared components or modules to allow additional customization. Because Amazon has a production procedure, customers may order something with unique features and personalize it more easily. The organization also receives the majority of its retail merchandise from other shops. This provides them plenty of time to procure high-quality merchandise from vendors. Mass customization is another process management strategy the company has put in place. Amazon has improved its capacity to fulfill distinct client wants over time. This was accomplished using a new tool on amazon.com that allows users to customize t-shirts with photographs or text.
Location Planning
This is how a corporation determines where it will be based. The primary goal of a location strategy for an organization is to increase its sales and revenue. Location is a significant boost to an organization’s cost and revenue and is one of the reasons for a company’s growth and development. Amazon has its headquarters in Seattle, located in America’s capital city; this is a strategic location since Washington, DC is centrally placed. Amazon can efficiently distribute its products to the rest of America. The choice of location for an organization’s warehouse location is influenced by the availability of the market and the mode of transport available (Nunes et al., 2020). Amazon has and operates several warehouses in countries like Canada and Europe to serve their customers quickly for the above reasons. This strategy by Amazon seems to be working well for them since they have recorded a consistent increase in sales and revenue over the last couple of years.
When warehouses are located close to clients, delivery times will be faster, and costs will be lower, allowing more customers to continue to utilize the services. Amazon has employed this method to boost the number of customers that use its services. The target market depends on the place chosen (Heizer et al., 2017). For example, in most large towns and cities worldwide, the residents have to put up with busy schedules, and for that reason, they have little or no time to go and do their shopping in person. The accessibility of suppliers is another reason location is essential to a company like Amazon. Because Amazon obtains the majority of its products from shops, its warehouses must be located close to the supplier’s location to lower the expense of long-distance transportation.
References
Gunasekaran, A., Dubey, R., Fosso Wamba, S., Papadopoulos, T., Hazen, B. T., & Ngai, E. W. (2018). Bridging humanitarian operations management and organisational theory. International Journal of Production Research, 56(21), 6735-6740. Web.
Heizer, J., Render, B., Munson, C., & Sachan, A. (2017). Operations management: sustainability and supply chain management, 12/e. Pearson Education. Web.
Nunes, L. J. R., Causer, T. P., & Ciolkosz, D. (2020). Biomass for energy: A review on supply chain management models. Renewable and Sustainable Energy Reviews, 120, 109658. Web.
Wieland, A. (2021). Dancing the supply chain: Toward transformative supply chain management. Journal of Supply Chain Management, 57(1), 58-73. Web.