{"id":219,"date":"2018-01-29T00:01:11","date_gmt":"2018-01-29T05:01:11","guid":{"rendered":"http:\/\/blog.richmond.edu\/mgmt340-05\/?p=219"},"modified":"2018-01-30T23:04:23","modified_gmt":"2018-01-31T04:04:23","slug":"amazons-efficient-processes-lead-to-their-success","status":"publish","type":"post","link":"https:\/\/blog.richmond.edu\/mgmt340-05\/2018\/01\/29\/amazons-efficient-processes-lead-to-their-success\/","title":{"rendered":"Amazon&#8217;s Efficient Processes Lead to Their Success"},"content":{"rendered":"<p>This section is all about learning how to analyze and improve business processes that will help a firm be more efficient and better satisfy their customers. There are a variety of methods that companies use in order to identify and resolve key issues within their core processes such as process improvement and process reengineering. Some companies do this better than others, but for this blog post, I am going to look at Amazon&#8211;by far one of the better companies at innovating and satisfying their customers&#8217; needs. Therefore, this blog post will shed light on Amazon&#8217;s core processes that should answer the following questions: What strategies do they use to continually satisfy customers and what about Amazon makes their operations so efficient?<\/p>\n<h3><span style=\"text-decoration: underline;\"><strong>Continually Satisfying Customers<\/strong><\/span><\/h3>\n<p>First, let&#8217;s discuss their ability to continually satisfy their customers. Amazon offers quick delivery, rewarding membership benefits, as well as an accurate delivery system. Everybody marvels at Amazon&#8217;s ability to provide the correct products within 1-2 days. In addition to this, being an Amazon Prime member gives a person many benefits such as free same-day shipping, discounts on family items, and access to music and video streaming platforms. Just two weeks ago, the campus bookstore was sold out of a book that I needed for the first day of classes. Conveniently, I log in to Amazon, type in the ISBN number, select next day shipping, and the book was in the post office when I woke up the next morning. Moreover, because I have an Amazon Prime account, there was no extra cost associated with the expedited shipping. These three characteristics of Amazon are highly sought after by consumers, which leads to increased consumer loyalty. Now, what about their operations gives them ability to consistently provide this quick, accurate, and beneficial service?<\/p>\n<h3><span style=\"text-decoration: underline;\"><strong>Efficient Operations<\/strong><\/span><\/h3>\n<p>If you look at Amazon&#8217;s warehouse operations, you will see that the process is highly automated and efficient. In fact, this video explains it better than I ever could:<\/p>\n<div class=\"jetpack-video-wrapper\"><iframe loading=\"lazy\" width=\"800\" height=\"450\" src=\"https:\/\/www.youtube.com\/embed\/UtBa9yVZBJM?feature=oembed\" frameborder=\"0\" allow=\"autoplay; encrypted-media\" allowfullscreen><\/iframe><\/div>\n<p>Basically, these robots bring shelves of inventory to the employee for them to get the specific product and place it in the customer&#8217;s shipment. Before this, the employee would of had to walk to a specific section of the warehouse, pick up the customer&#8217;s product, walk back to the loading dock, and place the product in the customer&#8217;s shipment. According to this video, these robots have increased efficiency in order fulfillment by 20%, allowing for some orders to be filled in 15 minutes instead of 90.\u00a0In addition to this, Amazon has warehouses everywhere. According to an article I was reading, Amazon has a warehouse located at least 20 miles away from 60-65% of the total United States population. This gives Amazon the opportunity and ability to offer same day shipping because of their efficient warehouse operations and expansive warehouse locations. Lastly, Amazon is known for following the principles associated with Six Sigma. As we have learned in class, Six Sigma is a 5-step procedure that will eventually lead to a nearly perfect process. Therefore, because of their disciplined adherence to these principles, Amazon has benefited greatly by creating a process that will eliminate errors and maximize efficiency, leading to increased customer satisfaction.<\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"text-decoration: underline;\">References:<\/span><\/h3>\n<p>http:\/\/www.businessinsider.com\/how-many-fulfillment-centers-does-amazon-have-in-the-us-2015-3<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"FLyYloiwvW\"><p><a href=\"http:\/\/www.intelligencenode.com\/blog\/how-amazon-uses-six-sigma-and-you-can-too\/\">How Amazon Uses Six Sigma and You Can Too<\/a><\/p><\/blockquote>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" src=\"http:\/\/www.intelligencenode.com\/blog\/how-amazon-uses-six-sigma-and-you-can-too\/embed\/#?secret=FLyYloiwvW\" data-secret=\"FLyYloiwvW\" width=\"600\" height=\"338\" title=\"&#8220;How Amazon Uses Six Sigma and You Can Too&#8221; &#8212; Retail Intelligence Blog\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>https:\/\/www.ft.com\/content\/916b93fc-8716-11e7-8bb1-5ba57d47eff7<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This section is all about learning how to analyze and improve business processes that will help a firm be more<\/p>\n","protected":false},"author":3728,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[71161],"tags":[],"class_list":["post-219","post","type-post","status-publish","format-standard","hentry","category-analyzing-processes"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-05\/wp-json\/wp\/v2\/posts\/219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-05\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-05\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-05\/wp-json\/wp\/v2\/users\/3728"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-05\/wp-json\/wp\/v2\/comments?post=219"}],"version-history":[{"count":0,"href":"https:\/\/blog.richmond.edu\/mgmt340-05\/wp-json\/wp\/v2\/posts\/219\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-05\/wp-json\/wp\/v2\/media?parent=219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-05\/wp-json\/wp\/v2\/categories?post=219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-05\/wp-json\/wp\/v2\/tags?post=219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}