SG7001 Managing Strategy Operations and Partnerships
Activity 1
| Facility type | Factors to be considered when identifying the best location |
| Fulfilment centres | For the fulfilment centre, it is important for Amazon to identify geographical locations that are near their warehouses and raw material storage. For the facility type of fulfilment centre, Amazon should consider the use of such places through which they can easily reach the customer and focus on different distribution channels. Further, they must focus on the use of different types of channels that can easily be accomplished in order to reduce the cost of the transportation system (Amazon facilities, 2021). |
| Pantry and fresh food fulfilment | Amazon should focus on fresh and food fulfilment because of the increasing demand for organic food among customers. When identifying the best location for this, Amazon should consider such places that keep the food fresh such as identifying the temperature, humidity level, state-of-art technology and other items. Further, a mass of cold storage must also be accomplished by Amazon in order to ensure the freshness and taste of the food. |
| Inbound sortation centres | For the inbound sortation centres, Amazon must consider the use of modern technological development and tools through which they can easily ensure faster delivery and create a network with customers. Apart from this, they must identify the use of every day delivery options with the help of trucks and delivery means that delivers the product to the door of the customer (Rodrigue, 2020). In this manner, Amazon can focus on the large size of the fulfilment centre and employ more people in it. With the use of robotics and machine learning, customer demands can be fulfilled easily. |
| Outbound sortation centres | For the outbound sortation centres, Amazon must identify different means of land so that they can easily deploy their products and services and store them with the help of employee support. For the storage process, Amazon must consider the use of such locations where they can easily store their products and ensure their business operations. Further, with the use of artificial intelligence, new skill and development processes, Amazon can easily focus on an association process that includes picking, packaging and shipping the products to the customers. |
| Delivery stations packages | For the delivery stations packages, Amazon must consider the use of last-mile delivery with the help of modern infrastructure development. During the time of identification of the best location, it is important for them to identify the effectiveness of the building in which they store their packages and its geographical location so that they can easily deliver the products to the customers without any problem. Apart from this, for delivery station packages, the distance from the primary and secondary source to the customer’s house and collection from warehouses must be the same in order to save transportation costs. |
| Prime Hubs | For prime hubs, Amazon must consider the use of market research and methodology process in order to identify the effectiveness of different hubs such as logistic operations, supply chain management and value chain analysis (Consumer Products Safety Commission, 2021). |
| Amazon Go* | For Amazon Go*, the firm must consider the use of tech operations and management in order to determine the growth and evaluation of the facility type. |
References
Amazon facilities, (2021) [Online] [Accessed through] <https://www.aboutamazon.com/workplace/facilities> [Accessed on 14th October 2021]
Consumer Products Safety Commission, (2021). In re Amazon. com.
Rodrigue, J.P., (2020). The distribution network of Amazon and the footprint of freight digitalization. Journal of transport geography, 88, p.102825.
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