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Chapter 15: Video Case 15- Amazon: Delivering the Earth’s Biggest Selection!

• How does Amazon’s delivery system create value for its customers?

Amazon creates value for its customers by offering satisfactory customer services via managing the retail operations with efficient use of technology. The operational efficiency helps in strengthening the company and providing support to the management to maintain their competitive advantage as well as the enhancement of corporate performance. The company also creates value for its customers through offering customers with a broad array of products within their shelves for the customers to select and at the same time ensuring timely delivery of their products to the customers exhibiting a high level of commitment towards the customers and business. The other way that the company improves the value for its customers is through the introduction of ‘Other customers who searched for this item also checked for’, this feature greatly helps the customers to quickly and easily identify products that they are looking for within a short time as a suggestion of their shopping is made on the website.

• What systems improved the flow of goods from the fulfillment centers to customers?

The primary systems that have improved the flow of goods from the fulfillment centers to the customers are the use of the telecommunication networks that has the customers to navigate through the website back and forth in search of information enabling the company to do real-time work. With the telecommunication networks, orders placed and recorded in the system are included in the box before the distribution is done. The delivery process is followed by delivery trucks as well as the setting up of the postal hubs to which are the destination for the packages where the customers get their products ordered. The delivery system has helped and left many customers satisfied while at the same time the rate of failure has reduced and the efficiency of the telecommunication software has improved bring satisfaction to the company and customers as well.

• Why is Amazon’s supply and delivery of goods and services system so important to its success and customers?

The logistics and the supply chain management plays a significant role in the success of the company, and this is not an exemption of the Amazon.com Company as the company offers services to online retailers for over 220 nations across the globe. With the possession such a large market, the company must be able to deliver the products to their customers on time and at the same time considering the cost for delivery, and this has been the key to the success of the company. If the logistics are not efficient in terms of supply chain and distribution channels, implying that there are high shipping cost, there is a high probability of the reduction of the overall profit for the company. To make the distribution efficient, Amazon ships the products to its distribution center where it is then redistributed to the final customer, and this is achieved by the use of a higher level inventory helping the company track the flow of supplies, and this has contributed to the success of the company.