LO2: Demonstrate critical thinking skills to develop a supported argument
LO3: Apply research techniques to explore a complex business problem
LO4: Demonstrate project management skills to address an identified problem.
Task
You will produce a research project that explores a current and contemporary issue that affects the business sector. Within your report you will be expected to produce a project plan that demonstrates your application of project management skills to your research project (LO4). You will be expected to apply research techniques aligned to those outlined and agreed through your Research Proposal (LO3). The content of your report should clearly outline a well prepared, and structured argument based on research on your chosen research topic. (LO2)
Other relevant assessment information:
• To achieve higher grades your work should evidence good use of research from a range of sources to underpin the judgments made and wide reading around topics to support conclusions drawn. You must include both a reference list and bibliography.
RESEARCH PROPOSAL (AMAZON)
Background Information
Currently, Amazon is the world’s leading online retailer. Since its creation, Amazon has altered the direction of retailing with its effective e-commerce site enhanced by a creative logistics solution. “The company has a vast product catalogue and inventory that allows consumers to purchase almost anything from clothing to beauty supplies, gourmet food, jewellery, books, movies, electronics, pet supplies, furniture, toys, garden supplies, and household goods (Thompson et al., 2024).” With headquarters in Seattle, Amazon operates through individual websites across the globe, software development centers, customer service centers, data centers and fulfilment centers. Amazon has its outlets and stores almost anywhere and with deliveries to more than 100 countries (Vecchio, 2018). It is for this reason that this research proposal examines how Amazon’s logistic innovations, like warehouse automation, drone deliveries, and same-day shipping, have changed supply chain efficiency.
Overview of the Research Topic
The Amazon supply chain system is one of the most advanced in the world, and its logistics network moves seamlessly. This has enabled the company to deliver a package at times less than a day and sometimes in only one day through Amazon Prime Air capabilities. Based on the current’s trends, the competitors are quickly catching up, so the company is investing heavily and always staking high to keep it relevant in the market (Sofiah et al., 2022, p386). For this reason, Amazon has recently introduced Prime Now, which ensures the delivery of all orders within one hour to its customers domiciled in any of the selected areas. All these has been achieved through its cutting-edge network of warehouses, transportation services, and fulfilment centers that constitute its massive supply chain. The evident fact is that Amazon always sharpens itself with the help of data analytics and machine learning to be on top of the curve for shipping and logistic operations.
Objectives of the Study
• To analyze the specific logistics innovation implemented by Amazon
• To evaluate the impact of these innovations on supply chain efficiency
• To assess the broader implications for the e-commerce industry
Significance of the Study
This research will help improve scholarly knowledge regarding logistics innovations and their impact on supply chain efficiency. From a study perspective, the study will provide significant guidance to e-commerce firms developing/improving their logistics infrastructure. The study will also highlight some ways for further investigation, particularly on the long-term sustainability of these innovations.
Literature Review
Amazon has redefined logistics and supply chain space through its business model, driven by innovation and all efforts centered on saving time. One of the critical factors in Amazon’s success has been its vertically integrated logistics network, which comprises fulfilment centers (with over 90 scattered worldwide), best-in-class inventory systems and closed-loop delivery infrastructure. Moreover, they are situated near Amazon’s fulfilment centers, close enough to balance, hold inventory, and line up shipping while zeroing out storage fees (Sofiah et al., 2022, p388). These centers use robotics and AI technologies to automate their operations, resulting in refined operations and ultimate efficiency. After it acquired Kiva Systems, Amazon automated many of its warehouses to better fulfil orders by automating picking, packing and reducing labour costs.
Amazon’s supply chain operations are efficiency-focused, as can be observed from various key significant indicators, such as delivery speed, order-to-delivery lead time, order accuracy, cost efficiency, and customer satisfaction. Speed in delivery has been characterized by an offer of 2-day shipping for members of Amazon Prime, and recently, there has been an expansion of the same-day and one-day shipping services. Order accuracy ensures the customer gets what they had ordered, bringing the returns rate to the minimum and eventually building trust in the customer (Vecchio, 2018). The maximization of cost-effectiveness arises with economies of scale combined with sophisticated logistic planning, which is why Amazon products come at such prices. It is an effective logistics performance since the customer is satisfied, as the product ratings and reviews indicate.
Existing academic research shows that Amazon has played a seminal role in studies of developing new strategies and technologies for logistics innovations. Amazon’s application of machine learning in forecasting demand and managing inventory is one massive way to reduce out-of-stock and overstocking situations. However, gaps remain to be sealed in resolving areas involving long-term sustainability and the effect on the environment (Sofiah et al., 2022, p 389). An example is that of delivery drones and electric vehicles for delivery: while being quoted as the future of this market, more research is still needed to ensure the scalability of the drones and solve regulatory issues.
The most widely-known logistics technology trends within Amazon lend themselves to the first phase, automation and data-driven decision-making. AI and machine learning are used not only to manage inventories but also for route optimization and maintaining delivery vehicles with predictive scheduling (Caraway, 2020, p69). While this is not yet unveiled on a national scale due to regulatory concerns, it is evident that Amazon’s piloting with drones under its Prime Air service could be the first step toward more flexible and expedited shipping options. The Climate Pledge is at the heart of Amazon. Zero net carbon by 2040: check. This includes electrifying its delivery van investment, funding for such a fleet, and renewable energies for its operations.
Research Methodology
The study will combine qualitative and quantitative research methods to explain Amazon’s logistic innovations and their effects on supply chain efficiency. Although the real experience using warehouse automation, drone deliveries, and same-day shipping will be unique, qualitative methods, mainly interviews with Amazon workers and other industry experts, will provide important in-depth insights. Quantitative methods will be included in data analysis for supply chain metrics and customer satisfaction surveys to provide measurable results of such logistic innovations.
Conclusion
Amazon’s logistics operations are a clear testimony to lighting up the debate on whether innovations are more potent than strategic planning powers in supply chain management. With advanced technologies, the efficiency of the company’s business model works towards improving customer satisfaction. Therefore, the research proposal calls for more research to fully understand the implications of these innovations, especially regarding sustainability and compliance with regulation, as the company pushes the implementation boundaries to a more fundamental level.
References
Aćimović, S., Mijušković, V. And Milošević, N., 2020. Logistics aspects of goods home delivery: the case of Amazon company. Marketing, 51(1), pp.3-11.
Caraway, B., 2020. Interrogating amazon’s sustainability innovation. Cultural Industries and the Environmental Crisis: New Approaches for Policy, pp.65-78.
Sofiah, M. And Aisyah, S., 2022. Analysis of Supply Chain Management Implementation on Amazon E-Commerce. Journal of Indonesian Management (JIM), 2(2), pp.385-390.
Thompson, T.R.G., Fessler, A., Danne, P., Tilsley, R., Bakler-Kugler, G. And Jasim, A., Ford Global Technologies LLC, 2024. Computer-implemented logistics method. U.S. Patent 11,861,522.
Vecchio, M.A., 2018. Design of Amazon’s Transportation Strategies to change the status quo (Doctoral dissertation, Politecnico di Torino).
