Benchmark for Supply Chain Integration

Benchmark-Supply Chain Integration

The process involving all the parties involved and integrated into a single system is referred to as supply chain integration. To achieve this state, significant alignment and coordination are required to ensure that everyone is working towards a common goal at all times. When the parts of a product that are required show up when needed, their time management is the resultant effect. This is because delays are prevented in manufacturing and eliminate time wastage and storage space. When supply chain integration is done properly, then it means that parties are brought together, even those that are often at odds using a single focus. This concept of supply chain integration goes back to many years ago, and companies have used it, so some of them have had their systems improve drastically. This is because this concept acts as a major contributing factor to the success of an organization. The goal of this is alignment in the supply chain sector. One of the companies is one of the companies that has successfully utilized and managed its supply chain, which has enabled its growth and profitability. We shall outline how it has achieved greater supply chain integration with the customers and suppliers.

The prime example that we are going to use as our benchmark is Amazon which has progressed by changing the face of retail by use of supply chain strategies that are bold and deploying innovative technologies. Concerning sales and operation planning in supply chain integration, Amazon’s performance has been affected positively due to its improved flexibility and its enhancement in meeting the needs of its customers (Foerstl et al., 2017). This company’s supply chain is critical since it ensures connections with different bodies, which makes it possible to provide an opportunity to receive materials and then transfer them to the buyers. Since this procedure proves to be complex, there is a need for increased attention towards its establishment from the management, for example, by considering the influence of planning sales and operations. The management process allows a balance between demand and supply by the company. Another impact is that it helps Amazon Company classify clients and define the marketing strategies, hence addressing customers’ needs. The company, therefore, reduces operational costs hence more emphasis on developing organizational goals.

Amazon’s medium and long-term forecast is also critical. It helps the operation management department see the decisions made by Amazon strike a balance to those products that cannot be obtained at the same time. It also reminds the company that it is customer-oriented (Rabie, 2018). The value obtained is by focusing on the long-term goals because of its alignment with the investment policy. On the other hand, logistics helps ensure that Amazon can decently operate its supply chain. Through this, the flow, storage of products efficiency, cost-effectiveness, and addressing the company’s needs are allowed to flow. Amazon being a customer-oriented organization, its competitiveness depends on how it quickly delivers its client-adapted offerings, which is achieved due to logistics. Following this, the modes of transportation and location of the warehouses enhance the ease of accessing different cities and regions, which helps increase the number of offerings and the customers.

The global impact sourcing has on Amazon is that it provides it with the chance of obtaining measurable supplier performance, which is related directly to increment in the savings cost. The positive influence it has on the operations is because it streamlines the procedure in product transportation since it is maintained by the supply chain (Kim & Chai, 2017). Global sourcing helps this company select the best providers in terms of quality and cost. This organization maintains high inventory levels because of its distant location with other parties involved in the supply chain. Also, improved supplier relationships can limit negative influences; hence, Amazon controls the situation with the help of investment and competitiveness emphasis. Procurement is also an essential source of supply chain effectiveness (Foerstl et al., 2017). Amazon can utilize those services provided by external sources like transportation. The best co-operators are selected; hence the supply chain may not face operational issues. Delays and expenditures are reduced by ensuring all parties in the supply chain cooperate. The use of outsourced logistics and functions improves the use of technology hence appropriate data. Also, Amazon can enhance its operations by outsourcing logistics since it gets a chance to reduce freight costs while improving the quality of goods and services.

Moreover, outsourcing limits the attainment of goals; hence the growth of Amazon is not considered. Misunderstanding of other issues results from the different systems the cooperating parties utilize. Hence it isn’t easy to control the situation in such circumstances.

Amazon has successfully leveraged E-commerce strategies in providing supply chain integration to boost sales and the organization’s growth. The strategy it has incorporated is controlling its listing in the search engine. This ensures that its websites will be accessible to potential clients without any problems; hence it will be at the top. These products are often followed by a long-tail key phrase (Vafae et al., 2020). This means that more different search requests can lead to the same product. The search engine used in the website allows in defining the features of various products. The customers, on the other hand, can receive personalized recommendations. The company offering free shipping increases the number of customers and involves those customers who reject online shopping because of the shipping costs. In addition, through this, one more party is involved in the supply chain. This strategy provides an opportunity for all the clients to write product reviews, and the company reads the comments from the buyers. Finally, the chances of the related products being bought are increased by increased cross-sells. Hence the number of clients increases; thus, Amazon gains more.

Following the example, Amazon has set in integrating its supply chain. I believe that other organizations can benefit. From the discussion above, the company has improved its performance over time hence becoming more competitive. The main focus of this firm is the clients and attracts them in different ways, which is why it experiences positive results. Allowing its customers to conduct research and make comments attracts them, and the company is always ready (Rodrigue, 2020). Hence, Amazon gets to learn more about the needs of its customers. On the other hand, Amazon searches its suppliers in the global framework, thus expanding the range of options it chooses the best.