Amazon is a multinational organization that offers its services to clients through online platforms as well as physical delivery. The order fulfillment is the process where the organization generates its product, markets them effectively, filling their stock as well as the delivering procedure to the clients. The process always focuses more on the operation of the organization. They also ensure that the transactions are well-conducted within the organization's logistics. The process has to be the day to day execution of the well-established structure. At Amazon, there is a clear structure of how they conduct their production, the purchasing, and the logistics behind the company's operations.
Amazon Purchasing Process
Amazon receives the products which they either buy on a full sale price from the manufacturers. For services such as songs, Amazon signs contract with the producers on how the payment will be made (Patterson et al., 2015) . People who visit the Amazon website has been able to purchase the sight before the product is delivered to them physically. The purchasing process at Amazon involves the clients who are interested in either the product or the service. The customer will have to place the order of the merchandise they are interested in placing the order will include the quantity of the product which is listed within the inventory of your purchase. After placing an order, they will be indicated as either shipped orders or managed orders.
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The customer at Amazon websites will verify the order. During the verification process, Amazon will need to validate the payment process. The site will manage the orders. When the payment process is not verified, the order will be pending which will later be canceled if it is not paid for shipping to take place. In most cases, there are some frauds attempt to purchase products from the site. Such orders are often invalidated upon noticed. The third step during the purchase is when the payment has been verified. Amazon will change the status of the order from managed order to un-shipped. The client will receive the notification confirming the order and the estimated date of delivery. The customer is allowed to cancel the order at the unshipped stage if they have changed their mind on the purchase. Location address is submitted ready for the delivery. Point to note is that confirmation of the order has to be done only within the thirty days after making the order.
Amazon Production
The production strategy of Amazon enables it sell more goods and arrive at customer satisfaction with much ease. Amazon relies on goods and services from other companies to sell to customers (Akter & Wamba, 2016). The main method of production that Amazon uses is acquisition from trusted companies. Popular or startup companies that are willing to expand their markets or availability of their goods contact Amazon. Amazon deals in almost all sorts of products, ranging from books to electronic appliances. Recently, Amazon launched a cloud computing platform, known as Amazon Web Services (AWS) that provides cloud computing capabilities to its clients or customers who majorly comprise of other companies.
The outline of production in Amazon comes from a step by step procedure they use to sell goods. Amazon is often contacted with other companies willing to sell their products. From the contact, Amazon can agree on a contract on how long they will be selling the products of such a company and based on what terms. After that, Amazon will acquire the goods from that company and deliver them to their stores before they post them on their web platform for sale. An example is Amazon selling iPhones from Apple Inc. on their website. The production procedure ends where the item will be in their stores ready to be given to a buyer who ordered it.
Amazon provides cloud computing to companies that wish to use such a computing capability. Most firms nowadays rely on cloud software, which is the reason why Amazon invested on these capabilities (Akter, & Wamba, 2016). For AWS, production starts at the bottom where Amazon buys servers and storage equipment. Amazon then installs software on the servers and configures them according to the needs of their client. After the configuration, Amazon can then post the space and allocate users the available platform for them to conduct their cloud computing.
Amazon Logistics
Amazon’s logistics processes entail several steps that ensure their capability to engage in customer fulfillment and profitability for them as a company. The logistics involve stages from order entry until delivery to the intended destination (Yu et al., 2017). First, order entry may involve a customer making an order about a particular good or service. Amazon takes note of the order and consults the relevant company for the goods or related services. Upon receiving the order, the company presents the goods and services to Amazon which receives them and takes them to their stores. For services, Amazon sets up the spaces in their servers for the customers.
Figure 1 : Amazon order Processing
Upon availing the goods and services in their platforms, the customers for such products check to confirm and purchase them. Amazon has strict policies that ensure once goods are sold, refunds can only be accepted if the goods or services are void, or the warranty period still stands (Yu et al., 2017). This ensures that Amazon offers the best goods and services to their clients. Amazon can either deliver the products to the customers or the customers can pick them from their stores.
References
Akter, S., & Wamba, S. F. (2016). Big data analytics in E-commerce: a systematic review and agenda for future research. Electronic Markets, 26(2), 173-194.
Yu, Y., Wang, X., Zhong, R. Y., & Huang, G. Q. (2017). E-commerce logistics in supply chain management: Implementations and future perspective in furniture industry. Industrial Management & Data Systems, 117(10), 2263-2286 .
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management . Cengage Learning.
