Redefining the Problem Statement

Strategic Operations Management

Client Company: Amazon

Redefining the Problem Statement

Fritz Pierre

Capella University
Redefining the Problem Statement

ABSTRACT
In my Operations Improvement Plan (OIP) I am assessing Amazon's logistical capabilities as

they push forward towards their completion of the automated supply chain operations. They have

a delivery management system like no other. Quite possibly, it may be the best in the world in

terms of the logistical net they have created in a short period of time for their particular type

services Amazon offers because never before this had been done. Based on the research

conducted for this assignment, the problem has been discovered. Not similar to a two-headed

monster, but the success and innovation on Amazon's side have bred a serious issue that cannot

be ignored. Quality and top class customer service are key elements to the formula that has

driven the company to high levels of profit, but it all comes at a price.
Redefining the Problem Statement

INTRODUCTION
Amazon LLC is entirely recognized for the impact made in the retail business. The internet giant

agitated the sector by giving customers great service, speed and a comfortable, cheap method to

purchase their items online while shopping on the go, at home, or preordered shopping for

replenishing purposes. This is a major convenience. In this modern society, man has not

experienced something quite like this before. This was the precursor that many experts claim is

the game changer in the world of e-commerce (Brodbeck, L. 2016).

Traditional retailers have had the ripple effect test their waters. Many of them are making erratic

decisions in hopes they will be saved with their new acquisitions, management, or technology.

The reality is that Amazon must perform hard, or not perform at all on the international stage. It

is a jungle out there, and the company's name is quite fitting when it comes to getting items to

you in this jungle we live in from point A to Z. Quite brilliant, when you think just the name

Amazon and what it represents. The hassle-free shopping has never been better, and it is quite

an experience that makes people come back for more. It is hard to beat their prices. Walmart

can run with them because their network has been forged for more than sixty years.

My client company Amazon is making big bets to secure their dominance in an industry that is

highly volatile where just one mistake similar to the E.Coli outbreak that had Chipolte Mexican

Grills losing hundreds of millions of dollars in a matter of days.

Amazon is far from sinking. Now they are willing to bet the whole pot again on their multi

industry-wide gameplan to thrust the last life left on an industry currently on life support for any
Redefining the Problem Statement

competitors. The key issue Amazon has a high level of debt that is connected through its

logistics. If they cannot figure out a way of making the process smoother in terms of operations

internally to shine on the world externally, all of the work, big data, the acquisitions, and

everything they fought for can be erased while jeopardizing any previous efforts made to secure

their position (Brodbeck, L. 2016).

In my writing, The diagrams displayed will point out the problems that currently exist along with

the steps taken to prevent the problem from happening. The Fishbone is convienent, and quite

clear (Russell & Taylor, 2017). While analyzing my client company, it is important purpose is to

learn the methods produced and where the failures exist to filter out the negatives that are

holding my client company back from positives. The Fishbone will easily help us find the root

of it all.
Redefining the Problem Statement

The flowchart shown addresses issues that have the attention of my client. Once management

can see the issues on the chart as well on the floor or field, they can apply what needs to be

created via cooperating discussions. The company is losing money by investing in the speed of

delivery and ease of service. It is worth taking more loans to cover the short terms issues as long

as the funds are constantly moving into the commercial merchant account. The local logistics in

metropolitan areas are strong, but the network needs more width. Each fulfillment center should

carry all of the same items so no customer misses out on a product they can have right away

instead of waiting a few extra days.

PROBLEM STATEMENT

My clients wants to cut their cost even it takes an unmanned drone to deliver it. Whatever it

takes because they are earning to their potential at this point. This move experts claim can

produce five billion dollars (FT.com, 2016). This is the central operation of Amazon’s profit.

It’s security is worth investing in. They need to get all products faster as our human desires

searches for immediate satisfaction. Everything needs to be assessed. Food suppliers, suppliers

in China, and worldwide, and so forth.

CONTRIBUTING CAUSE AND PROCESS IMPROVEMENT

The main thing to worry about is to cut any partner that is sucking the life of the company off.

The answer is to do it yourself. It is plain and simple.

Redefining the Problem Statement

GRAPHICAL FLOWCHART AFTER

We can clearly observe the events on the flowchart promotes positive growth. These processes

will work for the time being, but the business environment is too rough to stick to the same plan.

Just certain steps need to be addressed and executed for stability purposes as operations are

always working on solutions to protect their monstrous market share in the online world.
Redefining the Problem Statement

Amazon might possibly, fits the position to cross the finish line of automating the supply chain.

Cars are not flying yet, but they managed to figure it all out. The logistics world is scrambling

out of control. They do not know what to expect. The pressure from my client company forces

them to try something even if it is failure. Some experts are not panicking, but they should.

Their main goal is to cut as many costs possible and slide the partner carriers with expired

contracts to the curve.

Redefining the Problem Statement

CONCLUSION
It is unsure what the future may bring, but Amazon is during changing the shipping industry.

Maritime is included too. Shippers behave as if they will not feel the burn, but that is not true.

Customers want fast services and more options. It is plain and simple. They will find a working

method, and when that happens, it might be necessary to rid the financial portfolio of shipping

stocks because it is going to hurt.

Redefining the Problem Statement

REFERENCES
Russell, R., & Taylor, B. (2017). Operations and Supply Chain Management, 9th Edition

Brodbeck, L. (2016, Jan 27). Shippers shrug off amazon's logistics plans. Benzinga

Newswires Retrieved from http://library.capella.edu/login?qurl=https%3A%2F

%2Fsearch.proquest.com%2Fdocview%2F1760267033%3Faccou

Amazon, logistics and the 'last mile' problem. (2016). FT.Com, Retrieved from

http://library.capella.edu/login?qurl=https%3A%2F%2Fsearch.proquest.com

%2Fdocview%2F1862010636%3Faccou