Question

In: Operations Management

Explain how Amazon manages technology in the operations or supply chain to provide value to their...

Explain how Amazon manages technology in the operations or supply chain to provide value to their customer and employees. Must be a minimum of 250 words.

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Expert Solution

The Amazon isn't the largest online selling retail company only because if its resources and capabilities but only the effective embracement of technology in their supply chain management. The organisation utilises and have countless robotic solutions and automatic solutions available with it, both which helps in the picking as well as packing of the orders also the stocking and storing of the inventory. Drones, Amazon Prime Air etc is also seen used in the management systems to make the tasks achieved  in the more effective manner.

This technology helps the organisation to achieve and fulfil the orders as quickly as possible. It helps also helps to reduce the costs at large by providing both effectivity and efficiency. Staffing costs and handling costs are saved at large. So, the organisation free their funds for investing and using them in the areas other than the supply chains which helps the Amazon to grow into a better company. The Prime Air program isn’t fully functional yet but the company has assumed the fact that it would soon create a lot of demand as drone could be used to take advantage of this service and special Amazon landing map.

All of these technology comprises of the huge IT investment which Amazon annually made to make a company a better and more living in terms of resources and power. More customers could be reached, more orders could be placed, effective and efficient handling of inventory could be done and at last sustainability could be promised by using such technological ideas in the supply chain.


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