Amazon Supply Chain Essay

1004 Words 5 Pages
Impact of Sales and Operation Planning in Supply Chain Integration According to Notle (2015), sales and operation planning in supply chain integration positively impacts Amazon. The undertaking improves supply chain agility. The growth of a company can be attributed to the decision to implement sales and operation planning. The implementation of sales and operations planning may provide an increase in financial performance and can also realize growth in revenues. Amazon’s midterm and long-term forecasts would inform the operations management department that the company is on a positively progressive growth path and that there should be measures that make the trend sustainable. Amazon’s competitiveness is positively impacted by its operations …show more content…
The rationale for the position is evident by the fact that the implementation of global sourcing ensures that there is a sufficient supply of commodities in the supply chain. Global sourcing positively impacts Amazon’s supply chain for it enables the company to obtain superior goods with low costs of production due to the availability of affordable labor in various parts of the globe such as China. In addition, global sourcing provides Amazon with access to new technology, products designs, and the inability to innovate. The aspect is manifested by the occurrence of specialized skill, technologies, and competitive edges that are existent in other countries that manufactures and suppliers in the United States do not …show more content…
The undertaking also enables the company to personalize shopping experiences for its customers. Amazon acknowledges that the more relevant the product is to a user, the higher the likelihood that he or she will purchase it. Another e-commerce strategy employed by Amazon is the use of average order values that influences a customer to buy more than one product. The company bundles products together by recommending similar products that complement each other when purchased. The strategy enables Amazon to sell more of its products, therefore, increasing its sales. The use of user reviews is instrumental in helping customers to make informed decisions. Amazon provides visualizing customer reviews that turn prospects into buyers. Displaying customer reviews clearly, significantly increases the chances that a view will turn into a purchase. The reviews are instrumental to Amazon for it helps the company build a social proof of the usefulness of the product. Amazon is also responsive to customer inquiries in a prompt manner, an undertaking that enables the company to provide a personal touch. Its use of cookies also enables it to determine a customer 's needs accurately (Say,

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