Amazon Logistics Case Study
Amazon Logistics Case Study
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             Raj Patel
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Amazon Logistics
                  RAJ PATEL
               TRUPAL PARMAR
Amazon                             Page 1 of 46
Table of Contents
Executive Summary...............................................................................................................4
Introduction..........................................................................................................................5
Purpose............................................................................................................................7
Objectives.........................................................................................................................7
Methodology.........................................................................................................................8
Low focus on Amazon online retail store as compared to Amazon Web Services..................13
Amazon can expand Whole Food stores and turn into multitasking stores...........................16
Medium-Term Solutions...................................................................................................19
 Amazon                                                                                                               Page 2 of 46
   Sustainability...................................................................................................................21
Appendices.........................................................................................................................23
References..........................................................................................................................39
 Amazon                                                                                                               Page 3 of 46
Executive Summary
          "In 1994, Amazon was founded by Jeff Bezos that is currently one of the most valuable
companies. Amazon has become a global leader by selling more than a million products."
(Duffy, 2018) In this report, potential issues and future opportunities have identified that
further explained with various analysis tools by considering impact analysis. Finally, solutions
and strategies have evaluated and further demonstrated with individual implementation plans.
Moreover, a description of strategies relating to the development of sustainability and financial
value has illustrated. “The key supply chain challenges online retailers are lack of authenticity of
the product and suppliers, outsourcing of third-party suppliers, increased cost of shipping, and
disrupted quick delivery.” (SCCG, 2020)
          The issues we identified are increased shipping cost, higher dependency on other
logistics companies, Disruption in last-mile delivery, Low focus on Amazon online retail store as
compared to Amazon Web Services, and loss of supplies due to the Covid-19 pandemic. Also,
impact analysis with a relative root-cause analysis had assessed. Also, there are different
opportunities have identified for future opportunities that are flourishing online grocery sales,
Amazon Prime Air delivery service, and expansion of Whole Foods to turn into multitasking
stores.
          The significant impact of these identified issues and opportunities are late deliveries,
increased cost of shipping, reduced customer satisfaction as well as overall profit. The
objective here is to improve the supply chain by diminishing the impact that decreases the
overall efficiency of Amazon. To solve issues, and to improve opportunity, provide pick-up
location to the customer, improve the supplier selection process as well as last-mile delivery.
To add on, changing business model similar to "Reliance JioMart" helps enhance quick delivery.
Also, sustainability has primarily focused on environmental and social benefits. To improve
environment pillar, implementation of the latest gadgets and electric vehicles increase "the
prediction made by Amazon on carbon reduction." On the other hand, the social pillar should
implement by empowering employees and encouraging their talent, the company's growth
could be increased in the situation of COVID-19. Similarly, the financial analysis and its
improvement have explained by the installation of lockers in various locations including
convenience stores and shopping centers to solve the short-term solution.
Amazon                                                                                    Page 4 of 46
Introduction
       "Amazon.com Inc. was founded by Jeff Bezos in July 1994 and it’s headquartered is
located in Washington. The company is known for its online shopping service in the world along
with other services." (Duffy, 2018) "Initially, the company was launched to set to become an
online market for books but expanded its product line to electronics, households, software,
furniture, and lots more. In 2018 Amazon surpassed Microsoft as the most valuable public
company in the world." (Amazon, Who we are, 2020)
       "Amazon products and services are not just limited to e-commerce but it has also
started to produce its products. Additionally, Amazon web services contribute a major role in
the company’s growth and success.” (Amazon, Who we are, 2020) The founder of the company
was declared as the world’s richest man in 2018. Amazon has crossed many horizons and since
the company has been founded it has added 30 product categories in its bag from furniture to
electronics." (Cuccinello, 2019) "Amazon's primary products and services are Amazon.com,
Amazon Fresh, Amazon Prime Video, Amazon Music, Fire Tablets, Fire TV, Echo and Alexa,
Kindle, Amazon Flex, and Amazon Web Services." (Amazon, Who we are, 2020) "Amazon Web
Services provides on-demand cloud computing services to individuals, companies, and
governments." (Amazon, Open Data on AWS, 2020) “Apart from this, the company has built
many physical store networks, delivery stations, fresh food distribution networks, fulfillment
centers, and much more.” (Duffy, 2018)
       "The company has also invested and started new operations in the supply chain section
and named the venture as 'Global Supply Chain by Amazon' which has feature amazon as a
global logistic provider. It aims to automate and revolutionized the system of supply chain and
eradicate with document handling, freight booking, etc. Therefore, the middleman is no longer
required and the suppliers can directly book with amazon which will have better transparency
and get competitive pricing over others." (Duffy, 2018)
Amazon                                                                                 Page 5 of 46
Supply Chain Challenges
       “The difficulty with E-commerce is to implement a fail-safe web-based online
communication system with customers. They want to have real-time visibility over their orders –
track numbers are not enough. Expectations are huge, deliveries must be exactly as per
specification, on-time and, complete. According to a recent Forrester Research Inc. report,
consumers own an average of 4.5 digital devices, and they expect a smooth, consistent
shopping
experience regardless of what device they’re using. E-retailers may be understaffing their
customer service teams, and that can lead to missteps and frustration.” (SCCG, 2020)
       “Lack of expertise in e-commerce and the cost of technology tools are creating many
companies to consider outsourcing accomplishment to third-party service providers (3PLs).
Specialized 3PLs focused on e-commerce are more likely to often have material handling tools,
systems, and expertise to process online orders more efficiently. Each has its own strength
based on its delivery network and hub locations. The main issue is a contract with one
dedicated logistics company or uses two or more? There are some risks in both options; having
multiple delivery vendors may increase costs due to idle time but it means there is a backup
service. According to the Forrester report “retailers, master logistics will command a market
advantage through faster, more reliable customer delivery experiences”. (SCCG, 2020)
Amazon                                                                             Page 6 of 46
Project Purpose and Objectives (Raj)
Purpose
Objectives
   Discover the solution for issues which obstructs the growth of Amazon’s logistics services.
   Devise strategies and solutions for the sustainability of the supply chain.
   Learn the utilization of various tools and procedures that aid supply chain
   Evaluate insufficiencies regarding diverse Amazon’s freight forwarding service.
   Develop and implement every recommended action related to supply chain disruption.
Amazon                                                                                Page 7 of 46
Deliverables & Scope
       The project scope and deliverables have described in appendix 1. The project scope
statement involves the determination of the end goal by considering the project deliverables,
functions, and tasks. Here, we have determined tasks by considering them as in-scope and out-
of-scope.
In-Scope:
Out-of-scope:
       The key project deliverables are beginning from identifying the issues related to
Amazon's supply chain to the submission of the reports. In between these major deliverables,
discussion about history and growth, opportunities analysis, and solutions found have
discussed. The description of the details deliverables with described tasks can be found in
appendix 1.
Methodology
   Define: Design goals that are consistent with customer demands and the enterprise
    strategy.
Amazon                                                                                Page 8 of 46
   Measure: Identify characteristics that are critical to quality, measure product
    capabilities, process capability, and measure risks.
   Analyze: Analyze stage help to develop and design alternatives
   Improve: The implementation plan is drawn up of how the improved process might
    introduced.
       Additionally, by research and assessing every possible solution as well as findings we will
come up with the different tools which are indicated below.
Tools to be used:
o   SWOT Analysis
       it is a compilation of the company’s strengths, weaknesses, opportunities, and threats.
The primary objective of a SWOT analysis is to help organizations develop a full awareness of
all the factors involved in making a business decision.
o   STEEPLE Analysis
       STEEPLE analysis is a strategic management method that is used to examine the
external factors affecting the growth and performance of an organization.
o   Product Life Cycle
       It is a strategy that offers support to service organizations in enabling them to realize
their gross revenue potential.
o   Cause & Effect Diagram and C/N/X Analysis
       The tool calls for the collection of historical data, analysis of data and then
systematically eliminating causes of defects by using various problem-solving techniques.
Amazon                                                                                   Page 9 of 46
Project Work Plan
    Project Work Plan is a better way to display primary deliverables. It constitutes the
deliverables from the beginning of the report to the submission of the report. Additionally, the
deliverables have put with the Gantt Chart in appendix 2. Also, the primary and most important
deliverables are listed as follows.
   Identify and state purpose and objectives with the scope of the project.
   Identification of issues and opportunities by doing various analyses.
   Evaluate solution and strategies from identified issues & opportunity
   Draft report and presentation submission and Final submission.
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Issues and analysis
Impact Analysis
       “Amazon’s shipping cost raised to a whopping $8.1 billion from $6 billion in the year-ago
quarter. An increase in shipping cost could reduce the marginal benefits and give short term
bearish opinion towards Amazon stock.” (Chhatwal, 2019)
       “Shipping costs are higher expense contributors for Amazon, but the reasons behind
high costs are also a positive impact on the company. Amazon built various fulfillment centers
in the past years. It is now watching to develop its delivery service by decreasing the
dependency on UPS, FedEx, and other shipping partners. The subscription incomes have been
rising quickly for the past few quarters. A good delivery system is key to achieving and holding
more subscribers. With the launch of one-day delivery, Amazon should see another hike in the
Amazon                                                                                Page 11 of
subscription revenues as the importance of Prime membership progress. This should be a big
boost for Amazon.” (Chhatwal, 2019)
       The cause and effect analysis with C/N/X analysis can be seen in appendix 3.
Additionally, 5-Why analysis in terms of product return is done that can be seen in appendix 4.
“Amazon encroaching to 3rd party logistics providers” (Duffy, 2018) that may affect the sharing
portion of margin.
Impact Analysis
       “The Amazon has been reliant on third-party logistics’ service providers for ensuring on-
time delivery to its users. Dependency on the third-party service providers has had its influence
on Amazon’s market in terms of delivery costs, the timing of delivery, and customer
satisfaction. The shipping costs of Amazon were $11.5 billion, $21.7 billion, and $30 billion in
2015, 2017, and 2018, respectively. The constant rise in shipping costs has acted in Amazon
trying to control the end-to-end processes for the delivery of its goods.” (M, 2020) PLC analysis
is explained here and the analyzed picture can be seen in Appendix 5.
Amazon                                                                                  Page 12 of
2020) Period of delivery of product from distribution center to customer determines customer
satisfaction as well as the intensity of product return.
The fishbone diagram is explained factors affecting last-mile deliveries which can be found in
the appendix 6. Additionally, according to C/N/X analysis, there are various noises that are
identified. As we cannot remove or solved these noises, it is better to focus on experimental
and constant factors. The noises are environment conditions including, weather conditions, risky
road, environmental aspects, etc.
Impact Analysis
“If Amazon would not able to deliver the product on time then, it may be losing its business
because rivals such as eBay already figure it out the same day last-mile delivery option by eBay
express” (Khan, 2017)
Low focus on Amazon online retail store as compared to Amazon Web Services
       “Amazon creates revenue from its Prime membership and Amazon web services. It
would be difficult for Amazon to keeping up its E-commerce growth because its rivals such as
Walmart and E-bay are aggressively entered in E-commerce business.” (Gaus, 2019) Though
Amazon is focusing on the whole e-commerce sector, the primary focus has not established
correctly. Currently, "Amazon is focusing on the development of the store with no check-out
required." (Amazon, About Amazon Go and Amazon Go Grocery, 2020) Amazon is focusing on
automation and advances retail technologies to compete with large stores like Walmart.
Moreover, “Amazon Web Services is primary source of income to Amazon that gets primary
focus because of having number of clients for cloud support. Among many customers,
Coursera, McDonald’s, Honeywell.” (Containers Customer Stories, 2020) “Amazon is more
focusing to provide the most excellent service to these clients rather than concentrating on
logistics development.” (Cuccinello, 2019) the SWOT analysis to evaluate and find an
association with a specific issue – ‘Bidirectional growth’ is set out in appendix 7.
Impact Analysis
       “E-commerce is taking a bigger share of retail sales — about 13% last year — but
Amazon continues to take a larger cut of that share for itself, accounting for almost 42% of U.S.
Amazon                                                                                 Page 13 of
online sales last year, according to data discussed by Internet Retailer Editor-at-large Don Davis
Wednesday at IRCE.” (O'Shea, 2018)
Impact Analysis
       “The change sent Amazon sellers many already facing other confusions caused by
Covid-19 scrambling to find new approaches to get their products to consumers. Freight
times have begun growing, from as little as 24 hours to weeks or more, according to a
precipitous decline in sales. People are not going to want to order items when they won’t ship
for a month.” (Thompson, 2020)
Amazon                                                                                   Page 14 of
Improvement Opportunities and Analysis
Flourishing online grocery sales
       "The impact of COVID – 19 has created an opportunity for amazon and increased its
sales in the online grocery sector reaching three times the figures gained last year. Also,
Amazon has more than 500 grocery stores and it’s been increasing the grocery delivery
capability by nearly 160% with increased pick-up location during the second quarter. This
situation gives Amazon a chance to expand the online grocery sector. To add on, this immense
growth provides an opportunity to widen the business in the sector of fresh vegetables and
fruits." (Brown, 2020)
Impact Analysis
       The growth of Amazon online grocery gives freedom to every customer who wants to
shop groceries from home. Additionally, the “fast-forwarding logistics service plan for the United
Kingdom will increase customer satisfaction because of quick delivery. It will be benefited to
business as well as freight forwards that they will get the opportunity to expand their business.”
(Smithers, 2020)
Amazon                                                                                    Page 15 of
conditions that are not in the case of drone delivery. "Amazon implemented drone delivery in
2016 in England by focusing delivery within 30 minutes from Prime Air fulfillment center to the
customer's desired location. Especially for drone delivery, Amazon has a Prime Air fulfillment
center which is focusing on the proper packaging of products." (Amazon Prime Air, 2020)
       "Amazon develops drone that is automated and works fully automatic. There is no
requirement of a drone operator that is an immense success for Amazon Prime Air. These
drones are self-driving and only need the location of delivery. The inbuilt Global Positioning
System (GPS) and self simulation provide a location-based service to locate the customer house
and deliver the package." (Amazon Prime Air, 2020)
Impact Analysis
       Amazon Prime Air is important in the perspective of future growth of fast delivery as
well as improve last-mile delivery. Also, Amazon drones have limitations to flown into no-GPS
location. Currently, "the done service is developing in the direction of deep learning and all-
onboard computation. This technology helps to operate drones into GPS-denied areas."
(Philippe Martin Wyder, 2019)
       The development of drones in the direction of delivery in the countryside without having
GPS is an advantage or Amazon. To add on, "drones are self-driven having an accuracy of
driving through the small area with higher precision than before." (Philippe Martin Wyder, 2019)
Amazon can expand Whole Food stores and turn into multitasking stores
       "Amazon acquired Whole Foods company for $13.7 billion to connect two leading
brands as both companies are a customer-focused brand." (Banker, 2019) "Partnering with
Whole Foods will allow Amazon to expand its multichannel contribution and further enhance the
customer experience. Currently, Amazon is now facing the challenge of seasonality: 33% of
annual sales are made in the fourth quarter of the calendar year." Invalid source specified.
"To stock up and maintain inventory, Prime Whole Food app does the perfect job. Additionally,
there are different two-color labels to identify the difference in groceries. i.e. telltale blue and
yellow stickers to identify between organic grocery and grass-fed beef." (Banker, 2019) These
systems are helping Amazon to grow food stores faster and deliver products accurately.
Moreover, “coloration of Prime and Wholefood provides quality food to customers on time. This
Amazon                                                                                    Page 16 of
allows getting a 10 percent discount to every Amazon Prime member. To add on, Prime
customers get selected free delivery in selected ZIP codes.” (Foods, 2020)
Impact Analysis
       “Amazon and Whole Foods collaboration attracts new customers by omnichannel
strategy. This brings more customers than usual Brick-And-Mortar strategy. Usually, Walmart
and other online stores use the Brick-And-Mortar strategy which is focusing on sending
groceries to customers. Whereas, Amazon uses an omnichannel strategy which is focused on
various channels. This includes delivery to various stores, customers as well as the collective
retail market.” (Stanca, 2018) This creates an opportunity for Amazon to have a strong
customer base with on-time delivery.
       Whole Foods and Amazon Prime service open the doors of successful logistics as well
as customer satisfaction. They can provide better delivery to every customer including retailers,
stores, and customers because of the implementation of omnichannel. Logistics will be
improved as focused on quick delivery for everyone with a discounted price.” (Stanca, 2018)
(Foods, 2020)
Amazon                                                                                 Page 17 of
Recommended Solutions and Strategies with implementation plan
       The impact of these solutions includes saving money on the company’s shipping
charges, which will ultimately lead to increased profit. and reduces the dependency on third-
party logistics companies. Furthermore, by having a central pickup point for customers,
amazon is reducing its transportation cost as there is no longer need to go to each household
for delivery. The fulfillment center has to dispatch the products to only one location, reducing
the chance of sending the package to an incorrect address. The third-party vendors can also
send the packages directly to the pick-up point rather than to the fulfillment centers. This will
increase the manpower efficiency as well as productivity at the fulfillment center.
       This solution is relatively easy to implement because imposing delivery fees would only
require minimal software changes and does not have any infrastructure requirements. However,
creating a central pickup point would require route changes and bringing third-party vendors
onboard. These pick-up points may be formed by partnerships with local businesses or by
building a pick-up point.
       From a customer point of view, these changes may be seen as negative because it is
now costing customers more money to purchase items from Amazon and it may be
inconvenient for the customer to go to the pick-up locations. Furthermore, the creation of the
pick-up points has large initial costs for the company. It may also be difficult to bring third-party
vendors onboard. The negative impact of implementing this solution is the difficulty of achieving
the anticipated benefits within expected time frames. The implementation plan with scheduled
implementation and the responsible individual is posted in appendix 9.
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Medium-Term Solutions:
Improve supplier selection process to improve the authenticity of products
        The process to satisfy customers by proving authentic products has a direct link with the
Supplier selection process. “Quality of product as well as out of stock inventory.”
(ecommercetips.org, 2020) To have a better supplier selection process, Amazon should set
proper criteria to select a supplier. Every supplier has an individual price for the product.
Moreover, the “supplier selection process needs to improve in terms of quality of product and
inventory provided. The purpose should be to satisfy the customer by fulfilling their demand
with authenticated products to build a long-term relationship.” (Garfamy, 2018) Though
Amazon is using different verification processes by the use of machine learning, sellers provide
non-reliable and unauthentic products.
       The solution to improved supplier selection process brings numerous benefits from
customer satisfaction to reduced frequency of returns. The potential advantages could be,
       Increases customer satisfaction
       Reduce cost related to product returns
       Reverse logistics could be improved if fewer products have returned
       equal price for the same products sold by the different supplier could be achieved
       Contradictory to the positive effect of improved supplier selection process, there are
negative effects that are also present. Period to select the best supplier could take more time
than the usual process to select suppliers. Also, the latest updates and changes in policies make
the process lengthy. To implement the selection process of the supplier, a responsible person as
well as a period to implement is necessary. However, considering every detail that helps to
implement the plan has created and have put into appendix 10.
        “Amazon carried things into its hands regarding two years ago and invested massively
and should more in future in improving its distribution flows to ensure greater position control
right to consumers' doorsteps. Those investments, involving electric-powered delivery vans,
drones, sidewalk robots, and partnerships with third parties, have met with varying levels of
Amazon                                                                                   Page 19 of
progress. Amazon should Achieve its medium-term goals by aggressively implementing its
strategies such as smart tools, electric equipment.” (Scannell, 2020)
        “The demand for Amazon delivery services from its e-commerce site and Whole Foods
has skyrocketed during the COVID-19 pandemic as users explore methods to get goods
without going to their houses. It created more demand for last-mile delivery and Amazon get
the chance to implement its medium terms strategies earlier.” (Scannell, 2020)
        While some distribution systems are too new to give comments on, what's certain is
that Amazon's delivery service policy is sure to have ripple outcomes across the supply chain
and transport industry. Amazon could focus on customers' doorsteps delivery as a medium-
term goal to achieve success in the long-term. The implementation plan is created for the
medium- term which can be seen in appendix 11.
        “However, Amazon needs to invest billions in the functions of doorstep delivery. Amazon
already invested 31 billion North America and planning to invest more by the year 2022.
Amazon's investment to sustain its role in the last mile delivery market, however, is converting
more expensive. In its third-quarter earnings report the company said it invested $1.5 billion in
its one-day transportation lead, which company officials said they hope will replace the two-day
Amazon Prime membership business. The $1.5 billion figure is twice what the company spent in
last year's second quarter. Then, in its fourth-quarter call, Amazon said it spent another $1.5
billion on its one-day delivery initiative with plans to spend another $1 billion in this year's first
quarter on the program. The cost of giving last-mile services considered for 41% of the overall
supply chain expenses, which is twice any different section including warehousing and
parceling, according to the record.” (Scannell, 2020)
Amazon                                                                                     Page 20 of
“JioMart owned by Reliance plays a vital role to improve the efficiency of last-mile delivery.
JioMart is a virtual store that gives the experience of convenience shopping by selling to have a
wide range of products from fresh groceries to pet food to household cleaning.” (Reliance,
2020) “Similar to Reliance’s JioMart, Amazon should implement the strategy of shipping
products from neighborhood shopping stores to house.” (Digital, 2020) Amazon should focus on
neighborhood stores, wholesale markets as well as specialty stores instead of big retailers.
The model should implement as a separate service or Amazon Prime specialty service. If
Amazon segregates various membership according to the period of delivery, it would be
benefited to them financially. For instance, except Amazon's standard shipping service and
Amazon Prime, quick delivery membership provides an additional financial profit. The detailed
implementation plan is posted in appendix 12.
Sustainability
       "Amazon is developing its supply chain network to fulfill its customer’s needs and deliver
the parcels within the desired duration. Additionally, Amazon is also focusing on sustainable
business for its customers and the planet by reducing carbon emissions by 2040. To improve
sustainability, the affirmative development of Amazon Prime Air provides a positive impact."
(Amazon, Amazon Sustainability, 2020) (Philippe Martin Wyder, 2019) “In addition to it, these
gadgets help to achieve the goal of the fastest delivery. For example, Drones are part of the
strategies which will work on electric power and video recording of the delivery also possible by
a camera. Amazon is planning to purchase a million electric vehicles which can be a
revolutionary step for Amazon.” (Philippe Martin Wyder, 2019)
       Secondarily, the social pillar of the sustainability of the Amazon has explained with
improvement needed. “During the COVID-19 emergency, Amazon added 175,000 new jobs to
support the customer's demand for primary commodities. Also, Amazon is helping with the
World Health Organization, providing excellent cloud technologies and technical expertise to
trace the virus, understand the disorder, and strongly hold its range." (Amazon, Amazon
Sustainability, 2020) These situations should be implemented to create an opportunity to collect
data and implement a new concept to develop logistics for the future. The STEEPLE analysis is
posted into appendix 13.
Amazon                                                                                 Page 21 of
Financial value added
       "Shipping costs which include sortation, and delivery centers and transportation costs
were $27.7 billion and $ 37.9 billion in 2018 and 2019" (Amazon, Annual Report, 2019) "As the
exact break down of the transportation costs is not available from the Amazon financial results,
we can assume considering the high costs involved that the Amazon will be able to save a
considerable amount of money by implementing the short term solution of the customer
picking up their products from the pickup point. As regards to the putting up the pickup points,
the pickup hubs/lockers can range from $6000 to $20,000 depending upon the size of the
lockers. "Amazon can further reduce this installation and acquiring costs by making a strategic
partnership with the convenience stores or other chain stores as this will increase the foot
traffic to these stores where the lockers will be located.” (Lunden, 2017) It can also do the
coloration with the cities to install the pickup lockers at the train stations or bus stations as it
will give ease of picking the stuff to the citizens and reduces carbon footprint which gives
demonstrate the commitment of local cities towards the green environment.
Amazon                                                                                     Page 22 of
Appendices
1. Scope and Deliverables
Project Deliverables
Brainstorming
                        Every group member will read the case study and note the key issues, brainstorm
                        various issues with each other.
                        Everyone can understand details with reference to Amazon. It includes how, what,
                        where, why to do the business.
E-commerce platform
 Discuss Amazon’s
 dependency on other    UPS and FedEx
 logistics companies
                        UPS and FedEx are major rivals of Amazon in the matter of providing logistics.
                        Amazon needs to determine and assign logistics service to UPS and FedEx to deliver
                        parcels to their customers. It is a million-dollar business that Amazon outsource due
                        to high demand of orders.
                        Facilities and network
UPS and FedEx have huge logistics and Supply Chain network around the globe.
They have warehouses, medium of transport, reliable name in market and more.
Amazon                                                                                  Page 23 of
  Discuss in group          Amazon’s own supply Chain
 about opportunities
     for Current            Amazon expect to develop its own supply chain network, therefore, Amazon doesn’t
   development of           need to rely on other providers.
  Amazon’s Supply           Group meeting about review
        Chain               Discuss in group about what are the current situation of Amazon’s supply chain
                            according to case study and research.
                            Each member has to consider and revaluate final document as per responsibility
                            divided by Asana App.
                            Review the Final Report
Presentation
Project Exclusions
Amazon                                                                                     Page 24 of
2. Project Work Plan
   2.1.   Project Work Plan Deliverables
Amazon                                     Page 25 of
2.2 Project Work Plan Gantt Chart
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3. Increased shipping cost (Cause and effect analysis with C/N/X analysis)
Non-developed logistics
Amazon                                                                                 Page 27 of
  4. Product Lifecycle Analysis for higher dependency on other Logistics Companies
(kfknowledgebank, 2020)
Amazon                                                                                          Page 28 of
  5. Cause and effect analysis for disruption in last-mile delivery
Amazon                                                                Page 29 of
6. SWOT analysis for bidirectional growth
 STRENGTHS                                             WEAKNESS
        “The brand benefit of Amazon keeps                 “Amazon doing many businesses such as
         back buyers due to its wide variety                 Amazon Web Services as well as Amazon
         of products.” (Amazon, About                        Prime but for E-commerce, Amazon need
         services, 2020)                                     to do more focus on it because only some
        “Amazon's choice is the option that                 categories like electronics, baby products
         sorts out goods with full of inventory              are more rewarding for them.” (Amazon,
         with its references.” (Duffy, 2018)                 About services, 2020)
        “Third-party dependency shifts                     “In holidays, Amazon is lacking research
         inventory hazards to third                          regarding forecasting of their inventory
         party suppliers.” (AUTHOR,                          and inventory demand.” (Duffy, 2018)
         2020)
 OPPORTUNITY                                           THREATS
        “Various payment systems help                      Other e-commerce companies are
         Amazon to have customer satisfaction.”              focusing on specific categories of
         (Help & Customer Service, 2020)                     products, therefore they can focus on their
        “Amazon has better advantage with                   provided products better than Amazon,
         privacy   and     security   of   customers         For example eBay, Alibaba, etc.
         because every data is store in Amazon              “Cost   reduction   by   other   competitors
         Web Services cloud.” (Amazon, Open                  create potential competition and Amazon
         Data on AWS, 2020)                                  loses it because of managing number of
                                                             services and products.” (Kumar, 2006)
Amazon                                                                                  Page 30 of
7. SWOT analysis for disruption in last-mile delivery
 Strength                                           Weakness
        Amazon is e-commerce company                      “Amazon Prime delivery disrupted
         provides shipping of product online that           by means of late delivery as well as
         means no physical contact to customer.             higher cost product.” (Paler, 2020)
        “Demand of products increased                     Lack of inventory and supplies from
         significantly.” (Paler, 2020)                      manufacturers and sellers.
        “Amazon have less delivery time as
         compare to it’s competitors.” (Reuters,
         2020)
 Opportunities                                      Threads
        “Customers are preferring to by                   “Unlike Amazon, competitors like
         product online because of pandemic                 Alibaba and eBay are giving surety
         risk.” (Emont, 2020)                               to provide products but with
        Similar to Amazon products, Amazon                 possible delay.” (Reuters, 2020)
         Prime video have better opportunity               “Customers retention would be
         to grow in lockdown.                               difficult because of rivals like
        “Sympathy from people as well as aid               Walmart who fulfil demand quickly.”
         from government can be gained as                   (Greene, 2020)
         Amazon donated millions of dollars in
         the Covid-19 vaccine research.” (Duffy,
         2018)
Amazon                                                                                   Page 31 of
8.   Product lifecycle analysis Flourishing online grocery sales
 Amazon                                                                                          Page 32 of
  9. Short-term implementation plan- Provide Pick-up location to customer
  10. Medium-Term Solutions for- Improve supplier selection process to improve authenticity
     of products
Amazon                                                                           Page 33 of
  11. Medium-Term Solutions for- Improve the efficiency of last-mile delivery
Amazon                                                                          Page 34 of
             13. STEEPLE Analysis
                                                    30 plus store categories and more than 90 cloud service categories at AWS
Social Technological Environment Economical Political
                                        Amazon offered its one-day delivery services to more than 5000 Cities and towns.
                        Legal
                                                    Dash Button Technology
                                                    Artificial Intelligence name Alexa where is features with 30,000 skills.
Amazon Air is carrying out cargo operations and the venture is said it has a sustainable fuel of 6 Mil
                                                    Amazon has reached his highest level ever with $702 billion
                                                    that 57 million households in United States paid $99 US Dollars
         Amazon                                                                                                       Page 35 of
      14. Amazon e-commerce value stream mapping (Fundamental)
16.
Amazon                                                           Page 36 of
Team Project Log
Responsibility Metrix
          Name                         Tools
        Ramnik Jain                Swot Analysis
         Raj Patel               Cause and effect
       Trupal Kumar              Product Life Cycle
      Mustafa Bharmal                 Steeple
Amazon                                                                             Page 37 of
Team log - Daily
                                                                                  Member
 DATE EAM MEMBER/ TEA                                `                                        CoordinatorHRS Allocated   Categories
                                                                                  responsi
  7th July         Class             Meeting with Professor and form team            Team       Professor         2
  8th July         Class                Team formation and Role allocation           Team       Professor         1
                                  Discuss in class for role
                   Team                                                              Team       Professor         1
                                                           allocation(Breakout
                                                           Room)
  9th July     Individually                 Case study overview reading              Team              -          3
                                                      with team                                                               R
                                 1st Meeting on zoom to create project log
11th July        Team                                                              Team          Raj          1
                                                 and team charter                                                            M
                                Finish documentation individually (everyone's
              Individually                                                         Team            -          1              D
                                                    own opinion)
12th July        Team             Team charter begin (Informal meeting)           Mustafa         Raj         2              M
                                              Project log submitted                T&R            Raj          -             S
13th July     Individually                   Compile documentation                  Raj           Raj          2             D
14th July     Individually                     submit Team charter                Mustafa         Raj          -             S
                 Class                            Meeting for new                  Team        Professor       2             A
15th July        Class                                 learning                    Team        Professor     0.25            A
                                  Individual group meeting with Professor                                     1
16th July        Team                                                              Team          Raj                         M
                                   Meeting on Zoom for discussion and to
                 Team                         clarify upcoming work                Team         Trupal        2
                               Discuss for queried regarding upcoming topic                                                  M
17th   July   Individually                        (Informal work)                  Team           -           3              D
18th   July   Individually              Begin individual classified work          T & R          Raj          -              DR
19th   July   Individually                  Documentation received                Ramnik         Raj          -              DR
20th   July   Individually          Documentation received from Ramnik              Raj          Raj          3              D
                                          Proofread and Do correction
21st July        Class                                document                     Team        Professor      2
                                                       received                                                               A
              Individually        Class to learn Value strim Diagram and            Raj          Raj          -              DR
                                                decide tool experts
                                        Team Log received and Compile
 2nd July       Class                 Learned different tools and its              Team        Professor      2              A
                                      uses
              Individually                                                        Mustafa         Raj         -             DR
                                              Received Introduction
              Individually                                                          Raj           Raj         3             D+S
                                     Compile and submit assignment#2
23rd July        Team             Meeting with Team for work distribution          Team         Trupal       1.5             M
24th July     Individually                    Begin documentation                  Team            -          3              D
25th July     Individually         Find and evaluate issues and finalize it        T &            Raj         3               R
                                                   Submit Issues                   R T            Raj         -              DR
26th July        Team                           Meeting for general                & R          Trupal        1              M
27th July     Individually                discussion Finish issues with            Team           Raj         4               R
              Individually                             analysis                    T &            Raj         -               S
28th July        Class          Submit Issues and analysis final document          R T         Professor      2               A
              individually        Learn new topics and discuss on queries          & R            Raj         2               R
              individually                   Opportunity work begin                Team           Raj         3              D
29th July        Class                          compile project log               Mustafa      Professor      2               A
                                     meeting for project status and
              individually           tools                                        Ramnik          Raj         1              D
30th July     Individually                            discussion                   Team           Raj         -              DR
                                     Do correction in issues and analysis
                                     Received opportunities and analysis            Raj
                                                       @10.40
                                                                                  Mustafa
                                                           PM
               Individually                     Submit assignment #3                  Raj          Raj           -                S
  31st July       Team              Meeting with Team for work distribution          Team        Trupal          1                M
  1st Aug      Individually             Research on solution and strategies          T&R           Raj           3                R
  2nd Aug         Team                    Start doing implementation plan            Trupal        Raj         1.5                R
  3rd Aug         Team                    Start doing implementation plan            T&R           Raj           3                D
  4th Aug         class                          attend regular class                Team       Professor        2                A
  5th Aug         class                    group meeting with professor              Team       Professor      0.25               A
                                 write every problems noted by professor/
                   Team                                                              Team       Professor         -             DR
                                                   ask for extra meeting
  6th Aug          Team                       work distribution to team               Raj          T&R           1               R
  7th Aug       Individually       Project Purpose and Objectives corrections         Raj           Raj          2               D
                Individually              Deliverables & Scope corrections          Trupal          Raj          2               D
  8th Aug       Individually                    Introduction correction            Mustafa          Raj          2               D
                Individually                    Methodology correction              Ramnik          Raj          2               D
                Individually     Supply Chain Issues and Analysis corrections         Raj          T&R           4             D+
                                 Improvement Opportunities and Analysis
  9th Aug     Individually
                Individually         Proposed Implementation Plan created         Mustafa
                                                                                    Trupal       TT&&RR        34             DD
                                                        created
              Individually              solution for future opportunities         Mustafa        T&R           4               R
              Individually                   Sustainability finish and            Trupal         T&R           3          R + D + DR
10th Aug         Team                    received Practice presentation            Team          T &         0.25              A
11th Aug         Team                  Individual meeting with professor           Team          R           0.25              A
                 Team                       Markup every mistakes of               Team        Professor     0.25             A
12th Aug      Individually             presentation Start formatting the           Team        Professor       4              D
                                                     assignment                                   Raj
13th Aug      Individually                                                         T&R                        4
                                Remove unnecessary and wrong portions of                                                    R+D
                                                                                                 Raj
14th Aug      Individually                               report                    Team                       3             R+D
               Individually        Distribute corrections amid teammates           Team           Raj         2             R+D
                                          Distribute presentation work                            Raj
15th Aug      Individually
                                      compile andby   correct   individual part
                                                          teammates                  Team          Raj            2            D
                                                      submitted
  16th Aug     Individually                Final correction of assignment            T&R           Raj           6             D
  17th Aug     Individually             Finalize the report and proofread it          Raj          Raj           4            R+D
               Individually                 Do presentation's corrections           Mustafa        Raj           2            R+D
  18th Aug        Team                Submit report as well as presentation           Raj          Raj           1             S
                  Team                       Final presentation (5 team)             Team       Professor      0.25            A
  19th Aug        Team                      Final presentation (4 teams)             Team       Professor      0.25            A
  Amazon                                                                                                                               Page 38 of
Amazon   Page 39 of
      References
         The reason why we chose the following references because it has retrieved from various
          webpages of Amazon’s official website- Amazon.com. Therefore, there are negligible
          chances to have biased or manipulated information.
      Amazon. (2020, 08 08). About services. Retrieved 08 08, 2020, from www.amazon.com:
             https://www.amazon.com/b?ie=UTF8&node=12767011011
      Amazon. (2020, 08 08). Open Data on AWS. Retrieved 08 01, 2020, from
             ws.amazon.com: https://aws.amazon.com/opendata/?wwps-cards.sort-
             by=item.additionalFields.sortDate&wwps-cards.sort-order=desc
      Help & Customer Service. (2020, 08 08). Retrieved 08 01, 2020, from www.amazon.com:
             https://www.amazon.com/gp/help/customer/display.html?nodeId=201894900
Aazon. (2020). How Are Shipping and Delivery Dates Calculated? Retrieved from www.amazon.ca:
      https://www.amazon.ca/gp/help/customer/display.html?nodeId=201910120
       Amazon                                                                           Page 40 of
      Wall Street Journal is USA’s reputed journal. We chose Wall Street Journal as our source
       because of its authenticity and quality content. There are rare bias present to manipulate
       stock price.
       Emont, J. (2020, 03 17). Amazon Prioritizes Medical Supplies, Household Staples From
       Merchants Amid Coronavirus. Retrieved 08 01, 2020, from www.wsj.com/:
       https://www.wsj.com/articles/amazon-prioritizes-
 Forbes is
       Banker, S. (2019, 06 25). How Amazon Changed Whole Foods. Retrieved from
       www.forbes.com: https://www.forbes.com/sites/stevebanker/2019/06/25/how-amazon-
       changed-whole-foods/#6d4b6e7678dd
Cuccinello, H. C. (2019, 10 01). Jeff Bezos Through the Ages: The World’s Richest Person in Photos.
       Retrieved from www.forbes.com:
       https://www.forbes.com/sites/hayleycuccinello/2019/10/01/jeff-bezos-forbes-400-
       photos/#580d5e487d18
 Investopedia
AUTHOR, S. (2020, 04 13). Amazon’s Challenges in Delivery. Retrieved 08 09, 2020, from
       www.investopedia.com: https://www.investopedia.com/articles/investing/020515/why-amazon-
       needs-dump-ups-and-fedex-amzn-fdx-ups.asp
Page, V. (2020, Feb 2). How Amazon Fresh Works. Retrieved from Investopedia:
       https://www.investopedia.com/articles/personal-finance/052015/how-amazon-fresh-works.asp
 .srg
Brown, M. (2020, Jul 31). Amazon online grocery sales triple in second quarter. Retrieved from
       Supermarket News: https://www.supermarketnews.com/online-retail/amazon-online-grocery-
       sales-triple-second-quarter
        Amazon                                                                              Page 41 of
      srg
Chhatwal, R. (2019, September 30). Higher shipping cost hit Amazon Stock. Retrieved from
       investorplace.com: https://investorplace.com/2019/09/impact-of-higher-shipping-costs-on-
       amazon- stock/#:~:text=Increase%20in%20shipping%20cost%20can,bearish%20sentiment
       %20toward s%20Amazon%20stock.&text=This%20includes%20a%20higher%20proportion,its
       %20retail%2 0platform%20and%2
 ad
       Donnelly, K. (2020, 08 07). Shipping Problems? Get 10 Fixes to the Most Common Fulfillment
       Challenges. Retrieved from www.shopify.ca: https://www.shopify.ca/blog/122517253-most-
       common-shipping-problems
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 Vvdvsvs
 E5y
       Amazon                                                                            Page 42 of
   Aef.
    Gaus, A. (2019, 01 06). Amazon's 5 Biggest Challenges in 2019. Retrieved 08 08, 2020, from
    www.thestreet.com: https://www.thestreet.com/technology/amazon-key-challenges-for-2019-
    14825146
 Srf
    Greene, J. (2020, 07 30). Amazon’s virus stumbles have been a boon for Walmart and Target.
    Retrieved 08 01, 2020, from www.washingtonpost.com:
    https://www.washingtonpost.com/technology/2020/07/30/amazon-struggles-coronavirus/
 Afea
 Fwegw
    Khan, M. A. (2017). Taking the Amazon battle to last-mile delivery seriously . Retrieved from
    www.retaildive.com/: https://www.retaildive.com/ex/mobilecommercedaily/taking-the-amazon-
    battle-to-last-mile-delivery-seriously
 Adfe
    Kumar, N. (2006, 11). Strategies to Fight Low-Cost Rivals. Retrieved 08 01, 2020, from
    hbr.org: https://hbr.org/2006/12/strategies-to-fight-low-cost-rivals
 Srgrg
    Lunden, I. (2017, 07 27). Amazon launches ‘The Hub’, parcel delivery lockers for apartment
    buildings. Retrieved from techcrunch.com: https://techcrunch.com/2017/07/27/amazon-
    launches-the-hub-parcel-delivery-lockers-for-apartment-buildings/
 Ddgsrgs
    M.Carpente, J. (2008). Consumer shopping value, satisfaction and loyalty in discount retailing.
    Science Direct, 358-363. Retrieved 08 08, 2020
   The supply chain drive is also very famous for the market's news research. The information
    which is many years old can also be found in it. It a part of the Drive website.
   The retail drive is also very famous for the market's news research. The information which is
    many years old can also be found in it.
    O'Shea, D. (2018, June 7). Amazon still dominates e-commerce, but others have room to grow.
    Retrieved from www.retaildive.com: https://www.retaildive.com/news/amazon-still-dominates-
    e-commerce-but-others-have-room-to-grow/525177/
    Paler, A. (2020, 03 15). Amazon says it is out of stock of household items and deliveries are
    delayed due to coronavirus demand. Retrieved 08 01, 2020, from www.cnbc.com:
    https://www.cnbc.com/2020/03/15/coronavirus-amazon-says-items-out-of-stock-deliveries-
    delayed.html
   Blogs are also a source of information, people share the information, knowledge which they
    have, or the current scenario. As per reliable blogs, the journal is one of the choices among
    all websites.
    Philippe Martin Wyder, Y.-S. C.-C. (2019, 11 18). Autonomous drone hunter operating by deep
    learning and all-onboard computations in GPS-denied environments. Retrieved from
    https://doi.org/10.1371/journal.pone.0225092
   Supermarket News is the website for retail market updates. all the deals on grocery, current
    seasons grocery, and more information are available here. The business of retail keeps in
    Amazon                                                                                Page 44 of
touch
Amazon   Page 45 of
    with supermarket news and as Amazon steps into the grocery business, it would be a valuable
    source of information regarding Amazon.
    Redman, R. (2020, Jan 31). Amazon finishes strong fiscal year with lackluster physical-store
    sales. Retrieved from Super Market News: https://www.supermarketnews.com/retail-
    financial/amazon-finishes-strong-fiscal-year-lackluster-physical-store-sales
   The retail is the front website of The Economic Times. it published only market news about
    the current situation of markets, deals between companies, new adventures from any
    companies, and more.
    Reuters. (2020, 03 04). Alibaba's AliExpress warns of possible coronavirus delays. Retrieved 08
           07, 2020, from etail.economictimes.indiatimes.com:
           https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/alibabas-
           aliexpress-warns-of-possible-coronavirus-delays/74468195
       Business insider is famous for market news. its focus always on the stock market. if
        something happens which would be affected by the market then that news comes up
        on business insider.
    Richter, W. (2017, 06 22). Amazon is encroaching on an industry that's key to its success.
           Retrieved 08 08, 2020, from www.businessinsider.com:
           https://www.businessinsider.com/amazon-stock-price-logistics-companies-couriers-ups-
           2017-6
    TechTarget is the publisher for specifics sectors or targeted sectors. it a reliable source of any
    updated information.
    Scannell, E. (2020, 04 20). Amazon bets big on last mile delivery service improvements.
           Retrieved from searchaws.techtarget.com:
           https://searchaws.techtarget.com/feature/Amazon-bets-big-on-last-mile-delivery-
           service-improvements
   The supply chain consulting multinational group is an experienced company in the business
    world. it has many experiences in logistics operations. the challenges of the supply chain
    are the best explained by them.
    Amazon                                                                                  Page 46 of
SCCG. (2020). E-commerce supply chain challenges – who is pulling the strings? Retrieved from
       sccgltd.com: https://www.sccgltd.com/archive/e-commerce-supply-chain-challenges-who-
       pulling-strings/
      The Guardian is a reputed international newspaper and in its articles, all the information is
       based on truth and reality. All the editors have deep experience in journalism. The world
       can trust the Guardian because of its continuous reliable sources.
Smithers, R. (2020, 07 28). Amazon plans big expansion of UK online grocery service. Retrieved 07
       29, 2020, from www.theguardian.com:
       https://www.theguardian.com/business/2020/jul/28/amazon-plans-big-expansion-of-uk-online-
       grocery-service
      IVEY business school allow their undergraduate student of business school to write an article
       of the current business environment. Out of many articles they publish a few of them in public
       after checking all the parameters of that Article. Students put lots of hard work behind the
       research and its trustworthy. Young minds can think or analyze differently so it's valuable to
       take some information from it.
Stanca, E. (2018, 04 09). AMAZON & WHOLE FOODS: THE EVERYTHING STORE FOR EVERYONE.
       Retrieved from iveybusinessreview.ca: https://iveybusinessreview.ca/6294/amazon-whole-
       foods-everything-store- everyone/#:~:text=Amazon%20has%20the%20opportunity%20to,over
       %20the%20collective% 20retail%20market.
      Wired is the office page for newsletters, magazines, articles of specific categories that we
       are looking for. Thousands of subscribers believe in it and its writers. They released a
       newsletter after deep research about the news and explain it from its roots so it's easy to
       understand it.
Thompson. (2020, March 23). Amazon’s New ‘Essential Items’ Policy Is Devastating Sellers. Retrieved
       from www.wired.com: https://www.wired.com/story/amazon-essential-items-policy-devastating-
       sellers/
        Amazon                                                                                Page 47 of
            Amazon's business is the official third-party website of Amazon. Because of its
             Amazon's website we can trust it and get valuable information about amazon and in
             detail.
Website, A. (2020, 08 07). Get the best of Amazon Business. Retrieved from
             business.amazon.com: https://business.amazon.com/en/find-solutions/business-prime
            Stella Rising is the foremost marketing and media agency for active, high-growth customer
             brands, and service companies. Stella is too quick for its breaking news and keeps an eye
             on every movement in the market.
Yashayeva, R. (2020, Feb 27). Infographic: All About Grocery On Amazon. Retrieved from
             STELLARISING: https://www.stellarising.com/blog/grocery-on-amazon-infographic
            The time now is the reputed news website in India. Its business page covers all the
             movements of the Indian economy as well as the international market movement. it focuses on
             the ground report from the market.
Digital, E. N. (2020, 05 25). Reliance rolls out JioMart – Here’s all the information you need about this
             e-commerce venture. Retrieved from www.timesnownews.com:
             https://www.timesnownews.com/business-economy/article/reliance-rolls-out-jiomart-here-s-all-
             the-information-you-need-about-this-e-commerce-venture/596607
            Jio-mart is the new adventure of Reliance Industries and its business model can be
             an opportunity for Amazon.
Amazon Page 48 of
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