Journal of Advanced Research in Business Law and Technology Management
Volume 7, Issue 1 - 2024, Pg. No. 31-47
Peer Reviewed Journal
Review Article
E-Commerce Supply Chain Efficiency: A Case
Study of Amazon E-Commerce Company
Savaliya Vivek1, Jignesh Vidani2
MBA, L.J. Institute of Management, L.J. University.
Assistant Professor, L.J. Institute of Management, L.J. University.
1
2
I N F O
A B S T R A C T
Corresponding Author:
Jignesh Vidani, L.J. Institute of Management,
L.J. University.
E-mail Id:
jigneshvidani@ljku.edu.in
Orcid Id:
https://orcid.org/0000-0003-0872-8760
How to cite this article:
Vivek S, Vidani J. E-Commerce Supply Chain
Efficiency: A Case Study of Amazon E-Commerce
Company. J Adv Res Busi Law Tech Mgmt 2024;
7(1). 31-47.
This article is a case study on the supply chain efficiency of the
e-commerce industry. It has focused on a specific company to get
an idea about all e-commerce platforms. Amazon company is one
of the largest e-commerce companies in the world with extensive
market capitalisation. We are going to know, how Amazon company
maintains its supply and orders with their demands. There are mainly
four key elements of the efficient supply chain: integration, operation,
purchasing, and distribution. With supply chain efficiency, Amazon will
pick up inventory from manufacturing facilities around the world, ship
it across borders, handle customs clearance and ground transportation,
store inventory in bulk, manage replenishment across Amazon and
other sales channels, and drive directly to customers. All without seller
having to worry about managing their supply chain. The new solution
allows sellers to spend more time building great products, delighting
customers, and growing their business, while Amazon handles the
logistics, improves delivery speed, and reduces costs for sellers.
Date of Submission: 2024-01-26
Date of Acceptance: 2024-02-27
Keywords: Supply Chain Efficiency, Network, E-Commerce
Introduction
Definition and Introductions
E-commerce supply chain efficiency is the capacity of an
e-commerce company to deliver products to customers in a
time, cost, and sufficient manner (Vidani, 2015). It includes
all aspects of the supply chain, from product procurement
to warehousing and delivery (Vidani & Solanki, 2015).
Amazon E-commerce is a leading e-commerce company
(Solanki & Vidani, 2016). It is popular for its powerful
supply (Sharma & Vidani, 2023). The company has invested
heavily in technology and infrastructure to well-organise
its operations and reduce costs (Vidani, 2016). So as per
result, Amazon can offer the best competitive prices to its
customers and fast delivery times (Bhatt, Patel, & Vidani,
2017).
E-commerce supply chain efficiency is important for many
(Niyati & Vidani, 2016). It allows e-commerce companies
to offer their customers competitive prices. It helps to
improve customer satisfaction by ensuring all the products
are delivered on time with better (Pradhan, Tshogay, &
Vidani, 2016). It also can help to reduce costs for other
e-commerce companies, which want higher profits.
This research paper will use a case study approach to
ensure Amazon’s e-commerce supply chain efficiency (Modi,
Harkani, Radadiya, & Vidani, 2016). The case study will
focus on the following key areas:
Inventory management
Warehouse operations
Last-mile delivery
Journal of Advanced Research in Business Law and Technology Management
Copyright (c) 2024: Author(s). Published by Advanced Research Publications
Vivek S et al.
J. Adv. Res. Busi. Law Tech. Mgmt. 2024; 7(1)
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This article will also examine the following questions:
Literature Review
What are the key factors that contribute to Amazon’s
supply chain efficiency?
J. M. Maqueira-Marín, J. Moyano-Fuentes, S. B. Canada2018
How has Amazon used technology to improve its supply
chain efficiency?
Cloud Computing technologies are being applied in the main
business functions in the supply chain. This study’s main
goal is to disclose the determinant factors (drivers and a
relevant outcome) of the level of use of Cloud Computing
in the supply chain (Odedra, Rabadiya, & Vidani, 2018).
Here we have conducted an actual study in 484 companies
from different sectors in an intermediate position in the
supply chain. The method of collecting data consisted of
a telephone survey which uses a computerised system
(CATI). We used structural equation modelling (SEM)
to test the hypotheses. The actual study discloses that
Advanced Manufacturing Technologies getting the internal
efficiency of the supply chain (Intra-organisational IT)
and IT for capabilities in e-business/ e-commerce getting
external advantage of connection in the supply chain
with many companies (Inter-organisational IT) are leading
Cloud Computing assimilation. Other side, supply chain
combination is one of the major consequences of Cloud
Computing assimilation in the supply chain.
What lessons can other e-commerce companies learn from
Amazon’s supply chain efficiency?
Background
Current Trendsetters
The e-commerce industry is growing frequently, and supply
chain efficiency is becoming much more important for
e-commerce companies (Sukhanandi, Tank, & Vidani, 2018).
In recent years, there has been a trend towards faster more
appropriate, and more suitable delivery options (Singh,
Vidani, & Nagoria, 2016). In the current era, customers
expect to receive their orders within days or sometimes
even within hours. This levied pressure on e-commerce
companies to keep efficient supply chains (Mala, Vidani,
& Solanki, 2016).
Market Share
Amazon is the world’s biggest online retailer e-commerce
platform with a market share of over 30%. The company
has been successful because of its efficient supply chain
(Dhere, Vidani, & Solanki, 2016). Amazon’s supply chain is
more capable of delivering products to customers quickly
and without any damage, even during higher-spot shopping
seasons (Sharma & Vidani, 2023).
Importance of the Sectoral
For the global economy sector, the e-commerce sector is
an important part. In 2022, global e-commerce sales made
it to $ 5.2 trillion. The sector is expected to continue to
grow in next coming (Singh & Vidani, 2016).
Scope of Industry Growths
The e-commerce industry has to grow with a compound
annual growth rate (CAGR) of 12.2% from 2022 to 2027
(Vidani & Plaha, 2016). This growth will be inspired by
several factors, including the increasing popularity and
major part of the market of online shopping, growing
middle-class related markets, and most use of smart
electronics (Vidani, Chack, & Rathod, 2017).
Advantages of This Study to Companies and
Consumers
This research will be beneficial for companies (Vidani, 2018).
The companies can learn from Amazon’s best practices,
ideas, and innovation to improve their own supply chain
(Biharani & Vidani, 2018). This can induce lower costs and
higher customer satisfaction. Consumers can benefit from
more competitive prices and faster delivery times.
M. Own – 2004
This research studies side by side adopting e-commerce and
it also affects the productivity and economic structure in a
general equilibrium model. The adoption of e-commerce can
increase productivity and trade market volume because of the
benefits of fixed costs which are shared over a higher trade
level and economies of fields (Odedra, Rabadiya, & Vidani,
2018). It found that the lower fixed cost for establishing and
maintaining an e-commerce platform and a high degree of
improvement in unit transaction efficiency by e-commerce,
one another thing is that producers will get e-commerce
technology. Reduction in unit transaction cost through
e-commerce can also increase the problem of allocation of
labour and promote structural and unfavourable changes
in the economy (Sachaniya, Vora, & Vidani, 2019). Through
the development of the IT Sector, we can face the problem
of reducing fixed costs for e-commerce while improving
unit transaction efficiency, further developments of the IT
sector can generate unbalancing in economic structure and
productivity through e-commerce.
Sameer Kumar, Jessica Eidem, Diana Noriega
Perdomo
This paper arises from the evolution of e-commerce. It has
provided a new manner for retailers to handle customers.
Pure e-tailers and clicks-and-mortars are two business
models of this new pattern. It specifies to study of the
originality of pure e-tailers (Amazon.com) and clicks-andmortars (Walmart) with a relevant focus on their dot com
supply chains. Design approach – Strengths, weaknesses,
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oppositions, threats (SWOT), the Five Forces Model, and
Financial Performance Metrics give the idea which was used
to make comparisons and differences between Walmart.
com and Amazon.com supply chains. The paper finds that
this company provides more efficient supply chains to their
customers; however, in order two launch, e-commerce, both
business models still face important challenges. Amazon.
com and Walmart.com have different supply chain models,
as well as, strengths and weaknesses (Vidani, 2019). They
both face the same opportunities and problems as the
e-commerce industry grows at a high rate. The research
shows that lessons from one business entity can be applied
to the other with a view, to bring even more effectiveness
to both e-tailers and clicks and mortars’ supply chains.
difference, Transaction frequency, Proportion of sales to
e-supply chain integration promoter, and a number of
customers are able to understand suppliers’ decisions to
adopt e-supply chain integrations (Pathak & Vidani, 2016).
Buyers that would like to improve the adoption of e-supply
chain integration will be able to renovate and plan strategies
from the buyer–seller relationships aspects.
Q. Han, Yuyan Wang -2018
Overall Efficiency
In the current scenario, online shopping is getting popular.
In particular, low-carbon products are becoming more
suitable as consumers’ low-carbon awareness increases.
Manufacturers sell their low-carbon products through
e-commerce (Vidani, Jacob, & Patel, 2019). Thus, the
manufacturer and the e-commerce platform design a lowcarbon e-supply chain system. The manufacturer makes
products with air pollution reduction efforts, where the
e-commerce platform provides a sale (Vidani J. N., 2016).
In this paper, we described models for a decentralised
decision mode and a centralised decision mode in the lowcarbon e-supply chain and compared the decision results.
Our findings show that the centralised decision mode has a
better performance than the decentralised one, the ability
of the e-supply chain to respond to consumers’ response
and favourable outcome for a non-polluting product has
a direct effect on its operation, and the manufacturer’s
greenhouse issue reduction behaviour will be a potential
source for enterprises to gain more (Vidani & Singh, 2017).
At a great distance, we made a coordination contract for
them that can be accepted by both sides in a separate
decision mode. We Analysis upon that if the e-commerce
platform can share the carbon emission reduction costs of
the manufacturer, the performance of the e-supply chain
will be improved at a high level.
Determine important elements: Examine the main
components of Amazon’s efficient supply chain, including
order fulfilment, warehousing, technological integration,
inventory control, and logistics.
Wangyue Zhou, A. Chong, Cao Zhen, Haijun
Bao -2018
The purpose of this study is to look into the adoption of
e-supply chain integration by electric manufacturers and
electronic industry suppliers. This study can combine both
the transaction cost and resource-dependence models in
realising the perception of buyer–seller relationships in the
e-supply chain (Vidani & Pathak, 2016). The theory is based
on the proposed model. Data were collected from nonnatural and electronic suppliers who are located in Malaysia.
The data was sawing multiple regression analysis. The
results showed that Asset Specificity, Product Technological
Objectives
The extraordinary e-commerce success of Amazon is closely
linked to its extremely effective supply chain. Investigating
this region may provide insightful information and suggest
possibilities for development. Here are a few possible
study goals:
Calculate and measure effectiveness: Create measures,
such as cost, speed, dependability, and flexibility, to assess
supply chain efficiency at various stages.
Measure up against rivals: To determine strengths and
shortcomings, evaluate Amazon’s efficiency in comparison
to other e-commerce behemoths and conventional stores.
Specific Areas of Focus
Impact of technical advancements: Examine the ways in
which supply chain optimisation is aided by technology
such as automation, robotics, artificial intelligence, and
data analytics.
The function of fulfilment centres Examines the tactics
underlying Amazon’s vast network of fulfilment centres
and how they affect the cost and speed of deliveries.
Optimise your inventory management by examining
Amazon’s dynamic inventory management system, which
includes vendor-managed inventory, just-in-time delivery,
and forecasting methods.
Sustainability and environmental impact: Assess how
Amazon’s supply chain affects the environment and
consider ways to lessen its effects.
Challenges associated with last-mile delivery: Analyse the
intricacies and opportunities for optimisation of the last
delivery leg, taking into account drone delivery and other
cutting-edge options.
Additional Considerations
Future problems and scalability: Evaluate how Amazon’s
supply chain will change to accommodate the company’s
anticipated expansion and changing consumer needs.
Workplace and moral issues: Examine the working
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conditions and moral ramifications in Amazon’s supply
chain, taking into account any possibility of exploitation
and any worries over automation.
Regression analysis can be used to find correlations between
variables and pinpoint the factors that influence efficiency
(Vidani & Dholakia, 2020).
Regional variations: Examine how supply chain tactics
and efficiency vary depending on which location Amazon
operates in.
Qualitative
Amazon’s remarkable success in e-commerce is directly
associated with its highly efficient supply chain. Conducting
research in this area could yield valuable insights and
identify potential avenues for growth.
To comprehend the viewpoints and experiences of
stakeholders, keep an eye out for reoccurring themes
and patterns.
Methodology
Amazon’s remarkable success in e-commerce is directly
associated with its highly efficient supply chain. Conducting
a study in this area could yield valuable insights and identify
potential avenues for (Vidani & Plaha, 2017). Listed below
are a few potential objectives:
Define Your Objective
Focus more narrowly: Is a particular area of Amazon’s
supply chain—such as fulfilment centres, last-mile delivery,
or inventory management—the focus of your study?
Determine the research questions: Which particular facets
of efficiency—such as order accuracy, delivery speed, and
cost reduction—do you like to examine?
Choose Your Method
Quantitative
Examine data that is made publically available by Amazon
(such as industry statistics, financial reports, and customer
reviews) in order to spot trends and patterns (Vidani J.
N., 2020).
Create questionnaires or surveys to collect information
from partners in delivery, suppliers, and customers.
To measure the effect of particular supply chain
interventions on efficiency, apply econometric models.
Qualitative
Interview important participants in Amazon’s supply chain
in-depth (e.g., managers, warehouse workers, logistics
suppliers).
Examine case studies of particular supply chain
improvements implemented by Amazon.
To watch and record the workings of Amazon’s fulfilment
centres directly, take into consideration conducting
ethnographic research.
Data Collection and Analysis
Quantitative
Use web resources or statistical software to examine your
data and produce insights.
Use theme analysis tools to examine observational data
and transcripts of interviews.
Framework for Measuring Efficiency
Create a set of measurements: You can take advantage
of already-existing logistics performance indicators (LPIs),
such as delivery accuracy, lead time for order fulfilment,
and inventory turnover.
Think about outside standards: Examine Amazon’s
performance in relation to rivals or industry norms (Vidani
J. N., 2018).
Weigh the viewpoints of various stakeholders: Incorporate
measurements that show cost-effectiveness, supplier
relationships, and customer happiness.
Reporting and Recommendations
Describe the results you found: Provide your findings, data
analysis, and conclusions in a written report or presentation
that is easy to understand.
Make suggestions: Provide concrete recommendations for
how Amazon may increase the effectiveness of its supply
chain based on your study.
Think about the following restrictions and upcoming
research: Recognise the limitations of your research and
make recommendations for future paths for this kind of
work.
Additional Considerations
Data access: It can be difficult to get internal data from
Amazon. Relying on publicly accessible data or secondary
sources could be necessary.
Moral implications: Make sure that the informed consent
and data privacy guidelines, among others, are followed
in your research.
Openness and impartiality: Even if your results go against
what you already believe to be true regarding Amazon’s
supply chain, uphold your academic integrity and present
your data with objectivity.
E-commerce and Supply Chain Dynamics
With collecting information and advanced technology as
analysing objects, dynamic integration theory and methods
of the agile supply chain are studied based on the analysis
of the influence of electronic commerce on an integrated
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supply chain. This research paper suggests the problems
of the flow of information and integration levels for supply
Chains that are discussed on the dynamic integration
strategies and methods of supply chain from the perspective
of management idea and technologies development. In the
end, the direction of research on intelligent incorporation
is preferable.
E-commerce Industry Overview
India’s e-commerce sector has grown significantly in
the last several years. The traditional business model
has experienced a significant transformation since the
emergence of e-commerce enterprises. Many Multinational
Corporations (MNCs) were drawn to establish their
operations in India by the economic reforms that
were introduced in 1991, and this resulted in the vast
advancement of computers and technology in our nation.
The widespread use of the Internet has also aided in the
growth of these sectors. To be more precise, E-commerce
was initially used by startups as their main means of setting
themselves apart from competitors’ offerings. E-commerce
enterprises have witnessed a sharp rise in revenues with
the widespread adoption of smartphones and Android
operating systems. The public’s understanding of the
issues surrounding e-commerce plays a major role in its
development.
Importance of Supply Chain Management
By controlling and lowering supply chain expenses, as well
as by using fewer large fixed assets, such as warehouses
and trucks, supply chain management helps businesses
improve the pace at which goods are delivered to
customers. In distribution network management, the
primary objective of mobility is to raise the overall value
of each shipment as determined by user satisfaction. This
suggests that maintaining a level of customer satisfaction
requires a combination of efficiency and a reduction in
human resources. This research paper’s primary goal is
to comprehend and examine the logistical scenarios both
before and after the epidemic. Prior to the pandemic,
the majority of transportation relied on large suppliers in
the market; today, however, businesses are searching for
alternatives. The other goal is to observe how individuals
globally have come to understand the significance of
logistics in their daily lives. Improper transportation
methods can have a direct impact on the supply of goods,
which in turn affects consumers. Following the pandemic,
we witnessed the critical role that logistics play in our daily
lives. Without an effective logistics system, the global supply
chain of goods is disrupted, causing significant harm to
industries like pharmaceuticals and chip manufacturers
who were unable to ship their products on time and
disrupt the market. The effects of this systemic failure are
still being felt today, as factories ceased production and
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thousands of workers were laid off (Vidani, Meghrajani,
& Siddarth, 2023). The COVID-19 analysis of the supply
chain ecosystem, which is based on the study, offers a
framework for additional research using a transformative
lens. Prior to the pandemic, few people were aware of
the supply chain (Rathod, Meghrajani, & Vidani, 2022).
However, everyone soon realised the importance of supply
chains and logistics for the smooth flow of goods in the
marketplace and the unavailability of products due to
supply chain disruptions and a sharp increase in demand
after the pandemic. KEYWORDS: E-commerce, pandemic,
COVID-19, supply chain, logistics, disturbances in the supply
chain, supply chain recovery
Key Challenges and Opportunities
This article presents strategic prospects for e-commerceenabled supply chains and, consequently, significantly
enhanced consumer reactions, using certain facets of the
motor industry (Vidani & Das, 2021). The authors show
that companies that are able to go one step further and
alter their far broader manufacturing process philosophies
will gain a competitive edge. Companies that can lead the
way in supply chain e-commerce technologies will have a
durable competitive advantage because of the acquired
expertise connected with these developments, which
makes it difficult for rivals to imitate. On the other hand,
it is determined that leadership and change management
are important problems that need more research.
The Case of Amazon E-Commerce
The rapid shift in the commercial footprint towards
distributional-based consumption is linked to the advent of
e-commerce as a dominating retail paradigm. The research
highlights the significant physicality of digitalisation by
examining the geographic reach, market penetration,
and functional specialisation of Amazon’s distribution
(Vidani J. N., 2022). A shift from the traditional retail freight
environment to a new physicality of freight distributions
involving facilities, modes, and channels that are specifically
created is being favoured by e-commerce. In order to
establish a distributional hierarchy of facilities providing
logistical access to consumer markets, Amazon’s scenario
highlights a consistent locational behaviour. The three steps
of the distributional hierarchy are last-mile, distribution,
and procurement and fulfilment.
Amazon’s E-Commerce Operations
The largest online retailer in the world and a well-known
supplier of cloud services is Amazon (Amazon.com). Amazon
started as an online book retailer but has since developed
into a web-based business with a focus on digital streaming,
cloud computing, e-commerce, and artificial intelligence (AI)
services. Customers may buy practically anything from the
company, which uses an Amazon-to-buyer sales strategy,
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thanks to its enormous product variety and inventory, which
includes apparel, home goods, furniture, toys, jewellery,
books, movies, electronics, pet supplies,
and gourmet (Saxena & Vidani, 2023). This study chooses
data from Amazon’s annual reports for the years 2017
through 2021, examines profitability, solvency, and
operating capacity indicators, and assesses the company’s
profit model financially using DuPont and cash flow analysis.
Amazon’s Supply Chain Strategy
Effective supply chain management is a critical component
of every successful business’s everyday operation. Fast
supply chain performance has a significant impact on
organisational operations management (Vidani, Das,
Meghrajani, & Singh, 2023). The world’s most successful
companies, such as Amazon and Walmart, heavily depend
on state-of-the-art supply chain logistics techniques. As a
result, in this extremely competitive sector, every link in
the chain experiences substantial innovation.
Amazon’s Role in the Industry
The giant of 21st-century business is Amazon. It is no longer
only a retailer; it is also a leading host cloud server space,
a fashion designer, a producer of television and movies,
a marketing platform, a delivery and logistics network, a
payment provider, a credit lender, an auction house, and
a big book publisher. Despite its phenomenal expansion,
Amazon makes very little money because it prefers to
cut prices and grow rapidly. By employing this tactic, the
business has established itself as a leader in e-commerce and
is now the backbone of numerous other companies that rely
on it. This company’s behaviour and organisational features
raise anti-competitive issues, but the antitrust enquiry
has spared it. This Note makes the case that the existing
antitrust paradigm is ill-suited to capture the structure of
market power in the contemporary economy, particularly
because it links competition to “consumer welfare,”
which is defined as short-term price impacts (Vidani, Das,
Meghrajani, & Chaudasi, 2023). If we use price and output
as the primary metrics for measuring competition, we will
be unable to recognise the possible harm that Amazon’s
dominance may cause. In particular, the risk of predatory
pricing and the potential for anticompetitive integration
across different business lines are both undervalued by the
existing approach. There are two reasons why these worries
are more significant when it comes to internet platforms.
Firstly, the platform that market economics incentivises a
business to prioritise expansion over profits, a move, that
has been well received by investors. Predatory pricing
becomes highly logical in these circumstances, despite
the fact that current doctrine regards it as improbable and
irrational. Secondly, by integrating across business lines,
online platforms position themselves to control the vital
36
infrastructure that their competitors rely on, as they act as
crucial middlemen. This dual function also gives a platform
the ability to use data it collects about businesses that use
its services to discredit those businesses (Bansal, Pophalkar,
& Vidani, 2023). This Note delineates aspects of Amazon’s
hegemony. By doing this, we can better understand
Amazon’s business plan, highlight the anticompetitive
elements of its behaviour and organisational structure,
and highlight the shortcomings in the present doctrine.
In closing, the Note examines two possible approaches to
countering Amazon’s power: implementing common carrier
duties and obligations or bringing back classic antitrust and
competition policy concepts.
Supply Chain Efficiency Factors
“Supply chain plus the internet” is one that combines
strategic action with the internet, based on information
technology and platforms, encourages the high fusion of
supply chain components with contemporary science and
technology, and improves supply chain efficiency. The
fundamental components of an efficient supply chain are
information technology guarantee and information sharing,
which safeguard the “three flow”—the efficient flow of
materials, information, and funds—and maintain orderly
movement throughout the chain. This essay examines the
circumstances and issues surrounding the “three flow” and
explores ways to use internet technology to increase the
effectiveness of the supply chain system, from the customer
to the manufacturer, to logistics, and financial services.
Inventory Management
The network inventory management systems design, a
crucial element of e-commerce, has a direct impact on
operating costs and consumer satisfaction levels. Using
the great flexibility and effectiveness of object-oriented
technology, the article first uses UML to design and assess
a network inventory management system for a realworld e-commerce application, and then it uses CORBA
to construct it.
Order Fulfilment and Delivery
Order fulfilment at an online store is determined by the
needs and expectations of the consumer. It is possible to
designate a dynamic truck routing and scheduling system
that enables online shoppers to choose the delivery window
of their choice and have it confirmed at the time of purchase.
The process creates phantom orders and phantom routes
because it is predicated on demand (Chaudhary, Patel,
& Vidani, 2023). Consequently, in an online client order
procedure, real orders take the place of virtual orders. Both
parallel insertion and parallel tour-building techniques are
used in the routing and scheduling process. GPS tracking
and tracing are used to confirm customer service levels
and artificial intelligence or expert systems are used as
37
input to the demand forecasting data in a feedback loop
to restart the entire process.
Logistics and Warehousing
Higher standards for storage and logistics are emerging
with the growth of the E-commerce logistics sector. These
standards include the need for faster delivery times and
more operational accuracy when handling large orders and
SKUs. The variety and variation of E-commerce warehousing
demands, however, are beyond the capabilities of the
current fully automated (Patel, Chaudhary, & Vidani, 2023).
Cellular warehousing is a versatile and changeable storage
system that draws inspiration from cellular manufacturing.
There aren’t many systematic investigations on cell creation,
scenario design, or physical emulation models, despite the
fact that numerous articles have demonstrated this novel
idea. This research has three goals in mind as it creates
this conceptual model. First, the cellular warehousing
operation flow and cell creation are understood. Second,
with the backdrop of various order processing situations,
application scenarios including both intra- and inter-cell
operations are provided. Finally, as a testbed for more
qualitative assessment and insight abstraction, a physical
emulation model is constructed.
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world, with a single sample being the Amazon E-commerce
company. The findings demonstrate how Amazon has
pushed its rivals to automate more areas of the supply
chain, speed up delivery, build more warehouses, and
start producing their goods. Amazon’s supply chain is the
most efficient in the world because of a combination of
cutting-edge information technology, vast warehousing
networks, multi-level inventory control, and dependable
transportation. Amazon e-commerce businesses can benefit
from six different supply chain management strategies:
delivery options to customers; push/ pull strategy for supply
chain success; Amazon’s warehouse classes and zones;
warehouse automation; and supply chain cost.
Amazon’s Prime and Delivery Innovations
E-commerce is now a major worry for everyone, not just
business owners but also consumers looking to make
hassle-free purchases, since the globe has entered the
digital age. Global retail e-commerce sales are estimated to
have nearly doubled in the last three years, from USD 1.3
trillion in 2014 to US$ 2.3 trillion in 2017, and this growth
pattern is expected to continue into the future, but this
tendency calls for creative solutions, and one that will
be important for the future of e-commerce is the use of
automation technologies in logistics. As a result, the main
focus of this study is on the actual application of automation
technology in logistics. It also discusses the implications
that using automation technology in logistics will have for
e-commerce and how to prepare the sector for potential
disruptions in the future.
Technology road mapping has gained popularity recently
due to the benefits it offers to businesses, which include
strategic planning and technology alignment with business
goals. The drone technology roadmap employed by Amazon
for their newest service, Amazon Prime Air, is presented in
this article. The shipping costs and delivery time are two
key areas where the ever-increasing competitiveness in
the e-commerce sector is quite noticeable. In an attempt
to address this issue and surpass its rivals, Amazon
developed the idea of drone delivery. Drones are a costeffective and environmentally friendly shipping option
that Amazon chose to reduce emissions, expedite delivery,
and satisfy customers. Because of how quickly innovations
in engineering are occurring, it is always challenging to
forecast future technological developments. It is more
difficult to foresee them in the absence of past data. Since
drones have been around for a while, it is difficult to foresee
the future. This article focuses on drones, which Amazon
plans to employ for 30-minute Prime Air home delivery
services. One of the main motivations behind the use of
drones is the fact that time is extremely valuable in today’s
world. Drones can now be used by the military, to film
sports and movies, assist in search and rescue missions,
and monitor animals. Because of how quickly technology
is developing every day, drones are turning out to be quite
helpful to us in every way.
Amazon’s Supply Chain Innovations
Fulfilment Centres and Robotics
The notion of supply chain management offers a way to
optimise the flow of materials at the right time, place, and
quantity, hence increasing the company’s total productivity.
The goal of this study is to determine how a supply chain
management system has been implemented in Amazon’s
e-commerce, as the company is one of the supply chain
systems under consideration today. This study employs
a qualitative descriptive methodology, utilising pertinent
narratives sourced from reliable sources via online
resources or searches. From the 1990s until 2022, there
were about 100 different E-commerce companies in the
The performance of robotic mobile fulfilment systems
is analysed and modelled in this paper. An automated
parts-to-picker storage system, a robotic mobile fulfilment
system uses robots to deliver product-filled pods to a
workstation. It works particularly well for e-commerce
distribution hubs that have significant demand swings
and broad assortments of tiny products. The capacity to
quickly modify the warehouse layout and automatically sort
inventory is its most significant feature. For both single-line
and multi-line orders, queuing network models are created
to calculate average order cycle time, maximum order
Technology and Automation
Vivek S et al.
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throughput, and robot utilisation analytically. These models
can be used to rapidly assess various robot zoning schemes
or warehouse layouts. The models’ inclusion of multiline instructions and realistic robot driving behaviour are
their two primary contributions. The findings demonstrate
that: (1) the analytical models accurately predict robot
utilisation, workstation utilisation, and order cycle time;
(2) the maximum order throughput is relatively unaffected
by the storage area’s length-to-width ratio; and (3) the
placement of the workstations about the storage area
influences the maximum order throughput.
Data Analytics and Demand Forecasting
Big data sets about the demand for and cost of a broad
range of products become available as Internet-based
commerce spreads. These create new problems and
challenges for statistics, but they also offer fascinating
new avenues for empirical business and economic research.
This article provides an overview of a study that uses a
sizable e-commerce panel data set obtained from Amazon.
com to evaluate the merits of pricing discrimination in
the software sector. We discuss the critical demand and
cost-related criteria that need to be accurately assessed
in order to carry out this research successfully, as well
as our methodology for doing so. This covers techniques
to estimate demand elasticity, variable costs, and the
best pricing options using publicly available e-commerce
data, as well as a way for “reverse engineering” actual
demand levels from the sales ranks provided by Amazon.
We conclude with a quick assessment of some of the most
important issues that our analysis brings to light regarding
the trustworthy statistical analysis of e-commerce data.
Measuring Supply Chain Efficiency
The secret to efficient supply chain management is having
the right performance measurement system. Measuring
the overall performance of the supply chain involves
two challenges. One is the presence of several metrics
that assess each supply chain participant’s performance
separately. The other is the presence of disputes over
certain measurements amongst participants in the supply
chain. Because of this, the effectiveness of a supply
chain cannot be determined just by the performance of
its participants. In order to achieve best practises and
characterise and measure supply chain efficiency, a new
approach is developed in this study. There are models
available to quantify supply chain efficiency and assess
each member’s and the chain’s overall performance. Based
on our linear programming challenges, it is demonstrated
that a supply chain as a whole has the ability to produce
greater cost reductions and improved performance through
coordination and information sharing.
38
Key Performance Indicators
The aim of this research is to create a reliable tool for
assessing the performance of the conventional food
supply chain while taking into account the opinions of
various stakeholders. Therefore, focus groups and oneon-one interviews are used to first generalise the goals of
stakeholders. Second, supply chain goals are formed after
the goals of stakeholders are combined based on their
specificity and conflicting/ divergent character. Third, the
developed supply chain goals are supported by a list of
prospective performance indicators. Fourth, a selection of
key performance indicators (KPIs) is made. Consequently,
traditionalism, efficiency, responsiveness, quality, and
chain balance—along with the performance metrics that
support them—are developed as the five primary supply
chain goals. Validating the instrument in other food and
non-food sectors should be the main goal of future study.
Cost Efficiency and Time Metrics
The entire cost of product sourcing, production, and delivery
is a key factor in determining competitive advantage in
today’s highly competitive global market. However, because
supply chain processes cross-organisational and functional
boundaries as well as the constraints of conventional cost
reporting methods, the true cost of operations in many
organisations is frequently ambiguous or deceptive. Certain
cost-based strategies have been devised to tackle these
problems; nevertheless, they generally concentrate on
the conventional accounting functional perspective of an
entity, neglecting to encompass the business procedures
implicated. Other strategies for enhancing supply chain
performance, such as time-based techniques, aim to
increase productivity by locating and getting rid of nonvalue-added activity from supply chain activities. There
is little knowledge about how time and cost relate to one
another in different supply chains, even though measuring
time can be a useful strategy for boosting value in the
chain. Using an industrial case study as a guide, the article
explores how combining time and cost analysis might yield
a more accurate picture of supply chain performance and
help improve decision-making. The study that follows
shows how product expenses build up in the supply chain
and shed light on the relationship between time and cost
in supply chain operations.
Customer Satisfaction
How can businesses in rapidly expanding industries combine
effective supply chain management (SCM) with high levels
of customer satisfaction? Propositions investigating that
question were produced as a result of this inductive
case study of six customer cases from Nokia Networks,
one of the top suppliers of mobile telecommunications
equipment. Good customer-supplier relationships are a
39
key factor in dependable information flows, which in turn
lead to high efficiency. These are well-researched topics
that have also been examined in other industry contexts.
However, in a rapidly expanding systems market like the
mobile telecommunications sector, the provider must be
able to modify its product to suit a broad range of client
requirements and circumstances. Comprehending the
customer’s circumstances and requirements in conjunction
with an appropriate offering fosters positive collaboration
in enhancing the collaborative demand chain, ultimately
resulting in increased demand chain effectiveness and
elevated customer contentment.
Case Study Methodology
Manufacturers all around the world understand that
effective cooperation with their supply chain partners
is one of the most important elements for increased
earnings in today’s customer-driven marketplaces. It is
obvious that the independent partners’ activities need
to be coordinated and their goals need to be aligned
toward a single objective. This study offers an approach for
locating effective supply chain plans in both centralised and
decentralised industrial settings. Through the application
of thorough and sophisticated search techniques, the
methodology enables the creation of workable alternative
production and transportation plans. Numerous userdefined criteria, including cost, time, environmental
impact, and quality, are used to evaluate the plans. The
generated alternatives can be applied to the planning
and management of geographically distributed facilities
engaged in highly customised product production. The
method is applied to a tool and used in a case study on
automobiles.
Vivek S et al.
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manufacturers, distributors, and suppliers. Suppliers make
up the first chain, while buyers make up the last. Highquality products with the biggest benefits at the lowest
cost are crucial to the supply chain. Each input, output, and
intermediate has unit cost and unit price information in this
regard. For a supply chain to be managed effectively, cost
reduction and profit maximisation are crucial. The various
aspects of efficiency, including technical, cost, revenue,
and profit efficiency, can be assessed using data envelope
analysis (DEA). This article aims to assess the efficiency of
cost, revenue, and profit in both multi-stage and threestage supply chains. A numerical example is provided to
demonstrate these models. In the end, we contrast the
outcomes of variable returns to scale (VRS) with constant
returns to scale (CRS). Key words: profit efficiency, revenue
efficiency, cost efficiency, supply chain management (SCM),
and data envelope analysis (DEA).
Case Study Selection
These days, supply chain management is used by many
enterprises, and the choice of suppliers is crucial to a
company’s success. Consequently, the company’s supply
chain serves as a risk diversifier. A possible fluctuation
in results that lowers operational efficiency is known as
supply chain risk. This study examines supplier selection
risk variables in the electrical and electronic industries. The
study’s findings aid in understanding the critical elements
in supplier selection. To manage the supply chain more
effectively and efficiently, practitioners can benefit from
an understanding of risk factors through the analysis of
elements that have a significant impact on supply chain
management findings. Keywords: factors, supplier selection,
and exploration.
Data Collection
Data Analysis and Finding
Supply chain management is a broad term that includes
several different procedures, such as different traditional
logistical tasks and additional procedures. Coordination and
integration mechanisms, which are long-term tactics that
provide competitive advantage through overall supply chain
efficiency, assist these activities up to a point. One of the
main innovations and factors contributing to the success of
these cooperation tactics is information technology, which
is used for data collection, sharing, gathering, information
exchange, and process optimisation using package software.
This paper focuses on a few areas of the supply chain, such
as inventory sharing between suppliers and customers,
forecasting customer demand, and the integration of
product information throughout the value chain. It also
suggests conducting a study to identify the methods used
for collaborative work in the supply chain.
The Importance of several criteria for a supply chain
performance measurement model is discussed in this study.
The criteria were derived from recommendations made by
other researchers as well as the outcomes of earlier studies.
The criteria are separated into two groups: effective and
efficient. Using random sampling techniques, a survey
was carried out to find out which criteria can be utilised
to evaluate a supply chain performance measurement
model. Supply chain players from various industry domains
(both manufacturing and services) in Indonesia were given
questionnaires. Pair wise comparisons with an analytical
Hierarchy Process model were used to analyse the data,
and the results indicated that efficient criteria were more
significant than effective criteria. Three sub-criteria made
up the efficient criteria: the result is delivered in an easyto-understand format, the quantity of data is not excessive,
and the cost is minimal. The following characteristics,
ranked in order of significance, made up the effective
criteria: validity, responsiveness, comprehensiveness,
Data Analysis
A supply chain Is an interconnected network of
Vivek S et al.
J. Adv. Res. Busi. Law Tech. Mgmt. 2024; 7(1)
40
dynamics, and clarity. It will need further investigation to
create a model that satisfies these requirements.
items or the lowest price that the upstream firm is willing
to accept.
Efficiency Metrics for Amazon
Discussion
Strong-form efficiency in the housing market, when prices
completely include private information, is demonstrated by
this study. To identify shifts in public awareness, we analyse
Amazon’s gradual revelation of its new headquarters
locations in Virginia and New York. Employing a spatial
difference-in-differences methodology, we examine if
home values rise before Amazon’s public declarations.
Before Amazon’s choice, housing prices in the Virginia
headquarters showed a 4.3% premium, but there was no
further increase after the selection. Prior to the decision,
the price premium for New York was 17.5%, but it vanished
when Amazon closed its headquarters. There is no price
premia in other finalist cities, thus speculation is not
possible.
The structure of supply chains severely limits their efficiency.
The Impact of various decision-making frameworks on
supply chain efficiency is covered in this essay. This research
shows that the efficiency loss of supply chains is endogenous
under non-cooperative decision structures and that the
more power merchants possess, the more efficient the
system is. This is demonstrated by the examination of both
complete and asymmetric information.
Customer Experience and Loyalty
Scholars have not yet conducted a detailed analysis of
supply chain agility’s effects on the customer experience,
despite the recent abundance of research on the subject.
In order to close this gap, we evaluate how supply chain
agility affects consumer value and happiness, taking into
account the moderating influence of customer loyalty, from
the viewpoints of end users (B2C) and corporate customers
(B2B), to assess the direct, indirect, and conditional effects
across survey responses from 148 senior-level supply chain
managers (buyers) in Study 1 and 170 end-customers (i.e.,
consumers) in Study 2, we employed multivariate regression
analysis., The findings show that supply chain agility is still
directly related to the value and satisfaction of both B2B
and B2C transactions. Higher levels of consumer loyalty,
however, weaken these bonds, indicating that flexibility is
less crucial in this regard, agility is crucial for luring in new
clients, but once a relationship with a client is formed, more
agility may not necessarily be advantageous. One of the
earliest studies to look at how end users react to supply
chain agility is this one. The results add to the body of
literature already in existence by offering fresh perspectives
on how supply chain agility affects end users and business
clients (B2B and B2C).
Comparative Analysis
We separate the supply chain into two cases: one
for a central control system (CCS) and the other for a
decentralised control system (DCS), we then analyse the
supply chain efficiency between the two cases. We discover
that under the CCS example compared to the DCS case, a
capital-intensive industry’s supply chain efficiency is more
favourable. In the CCS scenario, the optimal supply chain
efficiency can be attained by selecting the highest price
that the downstream firm is willing to pay for intermediate
Interpretation of Research Findings
The notion of supply chain management offers a way to
optimise the flow of materials at the right time, place, and
quantity, hence increasing the company’s total productivity.
The goal of this study is to determine how a supply chain
management system has been implemented in Amazon’s
e-commerce, as the company is one of the supply chain
systems under consideration today. This study employs
a qualitative descriptive methodology, utilising pertinent
narratives sourced from reliable sources via online resources
or searches. From the 1990s until 2022, there were about
100 different E-commerce companies in the world, with a
single sample being the Amazon E-commerce company.
The findings demonstrate how Amazon has pushed its
rivals to automate more areas of the supply chain, speed
up delivery, build more warehouses, and start producing
their goods. Amazon’s supply chain is the most efficient
in the world because of a combination of cutting-edge
information technology, vast warehousing networks, multilevel inventory control, and dependable transportation.
Amazon e-commerce businesses can benefit from six
different supply chain management strategies: delivery
options to customers; push/ pull strategy for supply chain
success; Amazon’s warehouse classes and zones; warehouse
automation; and supply chain cost.
Implications for E-Commerce Supply Chains
The purpose of this study is to identify and evaluate, within a
theoretical and empirical framework, the cost positions that
have the most impact on a company’s overall cost efficiency
in supply chain management. Design, methodology, and
approach: The report employed a logical and systemic
analysis of expert research on e-commerce conducted over
the previous few years. The cost structure and process
management data of a wholesale organisation were used for
the empirical research. Conclusions: It can be said that the
adoption of e-commerce in a company improves business
efficiency in several ways. The average cost of inventory
management, the cost of the material ordering process,
and labour costs are the key cost positions that directly
depend on e-commerce adoption and use and experience
Vivek S et al.
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41
quite large changes, according to the quantitative and
qualitative analysis of e-commerce’s impact on business
efficiency. Limitations and implications of the research: The
empirical data that has been given supports the theoretical
implications of e-commerce.
Lesson from Amazon’s Case
Any supply chain’s design and management revolve
around logistical services. Modern supply chains, like
those found on Amazon, Alibaba, or JD.com, are pushing
the boundaries of traditional markets in ways that both
impact and are influenced by consumer behaviour thanks
to recent technological advancements. Corporations are
altering the way resources are used in production from
an economic standpoint. In order to achieve a cost-risk
trade-off equilibrium, management actions at the business
level adhere to risk management and cost efficiency
principles. Theoretically, the activities that are arranged
inside the company’s boundaries are only those that the
markets cannot provide a more effective substitute for,
while logistics services—like transportation, to name
a few—mediate the relationship between buyers and
sellers, or supply and demand in the market. Logistics
must change and adapt to new and growing issues, costs,
and hazards to end customers as technological innovation,
societal development, and consumer behaviour threaten
businesses’ established boundaries.
Conclusion
We may now return to our original plan and talk about
how we carried it out. The thesis aims to investigate the
connection between logistics and e-commerce in businessto-consumer (B2C) enterprises. We employed three goals
to better accomplish our purpose. They are as follows:
•
•
•
Explain how logistics and e-commerce are coordinated
generally, and specifically with Amazon.com.
Learn about the advantages and disadvantages of
the logistics industry while a business is creating
e-commerce.
Determine how to organise logistics while creating
e-commerce and describe the e-commerce
development that Amazon.com is undertaking.
Amazon China has begun to receive notice of this
cooperation, and it has also gained popularity. A crucial
component of e-commerce and a means of satisfying
consumer demands is the growth of logistics. The two
industries’ coordination is still insufficient; therefore
businesses, employees, and e-commerce enterprises must
be integrated.
Relevant literature is described to achieve the three goals.
A review of pertinent literature is conducted to get an
understanding of concepts related to third-party logistics
(3PL), business-to-customer (B2C) e-commerce, and
logistics. Additionally, to provide a coherent framework
for our thesis, we divide each of the two research topics
into a number of sub-questions. After that, pertinent data is
gathered, and analysis techniques are applied using various
Let logistics handle the transportation by utilising Amazon’s
dedicated logistics zone within the region. Another reason
Amazon has its own logistics division is that it cares deeply
about delivery, sees using it as a competitive advantage,
and receives direct feedback from customers. Then grow
the company based on the comments from Customers.
Certain steps can be taken to address the logistical
shortfall. Bolster the theory of contemporary logistics and
e-commerce and absorb cutting-edge concepts, theories,
and practises from outside. In order to promote the
theoretical circle in e-commerce and logistics difficulties,
Amazon can benefit from studying the findings of research
on logistics management conducted in other nations. Take
detours and attempt to take shortcuts to accelerate the
development of e-commerce logistics in China. Additionally,
the network’s favourable development and logistic service
system are beneficial.
In order to meet customer demands, a comprehensive
logistics system must be developed when developing
e-commerce. E-commerce companies can be saved at the
same time as logistics systems evolve. Businesses require a
more advanced technology logistics system, and they should
prioritise the service industry. To meet customer demands,
a comprehensive logistics system must be developed
when developing e-commerce. E-commerce companies
can be saved at the same time as logistics systems evolve.
Businesses require a more advanced technology logistics
system, and they should prioritise the service industry.
Recommendations
Unquestionably, Amazon’s supply chain is remarkable,
raising the standard for effectiveness and speed in the
e-commerce industry. Analysing its advantages and possible
areas for development might provide insightful information
that is relevant to other industries. The following study
suggestions are arranged according to important factors:
Technology and Automation
Effects of robotics and AI on warehouse operations: Examine
the particular domains (such as product picking, sorting,
and packaging) where these technologies have yielded
notable improvements in productivity. Calculate the time
and money saved, as well as any possible drawbacks like
job displacement.
Data-driven inventory management and demand
forecasting: Learn how Amazon uses data analytics to
maximise stock levels and reduce stockouts. Analyse
the performance of predictive models and algorithms in
comparison to conventional forecasting techniques.
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Blockchain’s contribution to supply chain transparency
Examine how blockchain technology might improve
Amazon’s supply chain’s traceability and transparency,
fostering moral sourcing and customer confidence.
Network and Infrastructure
Placement of fulfilment centres strategically: Examine the
elements that went into creating Amazon’s network of
fulfilment facilities, such as accessibility to major cities and
transit hubs. Evaluate how this network affects delivery
costs and times.
Enhancing last-mile delivery efficiency: Examine Amazon’s
last-mile delivery tactics, such as drone delivery and joint
ventures with local couriers. Analyse the trade-offs between
various approaches’ sustainability, cost, and speed.
The potential for many methods of delivery: Examine new
developments such as click-and-collect and self-service
lockers. Examine how they might increase consumer
convenience and lower Amazon’s shipping expenses.
Sustainability and Environmental Impact
Assessing the impact of Amazon’s supply chain on the
environment: Examine the resource usage and carbon
emissions related to transportation, warehousing, and
packaging. Determine possible strategies for reduction.
Examine how Amazon handles product returns and end-oflife items in relation to reverse logistics. Provide suggestions
on how to reduce waste and encourage circularity in the
supply chain.
Eco-friendly sourcing and packaging methods: Examine
Amazon’s initiatives to utilise less packaging and recycle
materials. Examine creative packaging ideas and ethical
sourcing tactics.
Social and Ethical Considerations
Labour laws and conditions at work: Examine studies and
reports regarding labour laws and conditions at work
at Amazon fulfilment centres. Think about the moral
ramifications and suggest tactics to enhance employee
well-being.
In sourcing transparency and traceability: Examine Amazon’s
initiatives to guarantee that its items and resources are
sourced ethically. Determine possible opportunities for
development, such as impartial auditing and equitable
labour standards throughout the supplier chain.
E-commerce’s effects on neighbourhood communities
Examine the possible effects of Amazon’s explosive
growth—both good and bad—on regional economies
and communities. Provide solutions for reducing adverse
effects and maximising positive effects.
42
Strategies for E-Commerce Company
The advances in information technology have prompted
the development of many supply chain informationsharing strategies, including electronic point of sales
(EPOS), vendor-managed inventory (VMI), e-shopping,
emergency trans-shipments, and so on. However, variations
in the business environment can produce uncertainty
and increase decision-making complexity for enterprises
selecting from various supply chain information-sharing
strategies. An effective and efficient supply chain strategy
should be capable of reducing costs and raising customer
service levels and should be capable of enhancing the
robustness of the supply chain. In this study, the robustness
of different supply chain strategies under various uncertain
environments is studied using the simulated beer game.
Techniques included Taguchi methodology and multiple
criteria decision-making methods (MCDMs), including
simple multiple attribute rating technology (SMART), a
technique for order performance by similarity to ideal
solution (TOPSIS), and grey relational analysis (GRA). The
signal-to-noise (S/N) ratio for each criterion is calculated
to indicate the robustness of performance. This S/N
ratio is used to determine an overall evaluation among
various supply chain information-sharing strategies. The
simulation results show that e-shopping has the most
robust performance in uncertain environments.
Numerous supply chain information-sharing solutions,
such as electronic point of sale (EPOS), vendor-managed
inventory (VMI), e-shopping, emergency transhipments,
and others, have been developed as a result of information
technology advancements. However, when businesses
choose from a range of supply chain information-sharing
solutions, fluctuations in the business environment can lead
to uncertainty and complicate decision-making. Reducing
expenses, improving customer service, and strengthening
the supply chain’s resilience are all goals of an efficient and
successful supply chain strategy. This study uses a simulated
beer game to examine the durability of various supply
chain methods under various unpredictable conditions. The
Taguchi methodology and multiple criteria decision-making
methods (MCDMs) were employed as techniques. These
included grey relational analysis (GRA), order performance
by similarity to ideal solution (TOPSIS), and simple multiple
attribute rating technology (SMART). Each criterion’s signalto-noise (S/N) ratio is computed to show how robust the
performance is. The overall assessment of different supply
chain information-sharing systems is determined using this
S/N ratio. According to the simulation results, e-commerce
performs best in unpredictable contexts.
Potential Areas for Improvement
In recent years, the e-commerce market has grown
significantly, and the online retail market has become
43
very competitive. Online retailers strive to improve their
supply chain operations to reduce costs and improve
customer satisfaction. Value stream mapping (VSM), a
tool created by the lean production movement to identify
and reduce errors, losses, and lead time and to improve
value-added activities, has been proven to be effective in
many manufacturing processes. In this study, we investigate
the application of value stream mapping (VSM) in the
supply chain of an e-commerce retailer on Amazon. By
visualising the entire supply chain with VSM, the waste
that is produced during the delivery process from the
retailer to the customer was identified. The five whys
method was then applied to find the root cause of the
waste. Furthermore, a scoring method was developed to
evaluate and compare two different supply chain logistic
models to identify a strategy for improvement. This
study provides a systematic methodology to understand,
evaluate, and improve the entire e-commerce supply
chain process utilising VSM. It was demonstrated that the
methodology could improve supply chain management
efficiency, customer satisfaction, and cost reduction.
Future Research Direction
Based on Amazon’s present supply chain efficiency
strengths, the following promising future research
opportunities have been identified:
Hyper-personalisation and Predictive Logistics
Demand forecasting at the level of the individual customer:
Make use of cutting-edge AI and machine learning to
anticipate the needs and preferences of each consumer,
allowing for almost instantaneous order fulfilment and
customised delivery options.
Dynamic inventory allocation and routing: Create selflearning algorithms that, using real-time demand and
traffic data, can improve the placement of inventory and
delivery routes. This might entail drones and self-driving
cars adjusting to unforeseen circumstances.
Integration with Emerging Technologies
Optimise your logistics with quantum computing:
Investigate how quantum computing can solve challenging
logistics issues tenfold faster, resulting in better routing
schemes, warehouse designs, and inventory control.
Virtual and mixed reality applications in supply chain
administration Use VR/ AR to teach warehouse staff
remotely, give suppliers access to virtual product
prototypes, and create engaging customer experiences
with product sourcing and delivery.
Sustainability and Circular Economy
Closed-loop supply chains: Look into effective ways to
return products, refurbish them, and reintegrate them into
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the chain while reducing waste and environmental effects.
Zero-carbon logistics: Investigate alternate energy sources
and technologies for warehousing and transportation to get
toward an e-commerce supply chain that is carbon neutral.
Ethical Considerations and Social Impact
Transparency and traceability in the supply chain: Provide
blockchain-based solutions to ensure total transparency
in the procurement of products and resources, as well as
sustainable and ethical practices all the way through the
supply chain.
AI-driven ethics monitoring: Use AI tools to proactively
spot and handle any ethical issues that may arise in the
supply chain, such as hazardous environmental conditions
or unethical labour practices.
Effect on nearby communities: Investigate the long-term
social and economic effects that Amazon’s operations have
on nearby communities, and devise plans to lessen adverse
effects and foster prosperity for everybody.
These are only a few possible avenues for future study on
the effectiveness of Amazon’s supply chain. Researchers
can help create a more ethical, sustainable, and customised
e-commerce experience for firms and customers by
investigating these options.
Conflict of Interest: None
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