FACULTY OF BUSINESS AND ACCOUNTANCY

ASSIGNMENT COVER PAGE

Student’s Name SAFWAN RAFAIDEEN

Student’s Matric No BBA/AC/14/31

Year/Semester 2022 Jan-Mar

Program Bachelor of Business Administration in Accounting

Subject Name / Introduction to Operation Management

Subject Code BBA 2643

Lecturer’s Name Mr. Usama

Assignment Title SCM & BPR

No. of Page (excluding 10

Assignment brief
pages)

Required words 2500 Actual# of words 2571

Soft copy included Yes / No

DECLARATION BY STUDENTS:

I certify that this assignment is my own work in my own words. All resources have
been acknowledged and the content has not been previously submitted for
assessment to LINCOLN or elsewhere. I also confirm that I have kept a copy of this
assignment.

Signed: Date: 21st Mar 2022

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 BBA 2643
Supply Chain Management and Evaluation of BPR

Table of Contents
Introduction......................................................................................................................................3

Task 1...............................................................................................................................................3

1.1 Briefing about the Organization.............................................................................................3

1.2 SCM of the Organization.......................................................................................................3

1.3 SCM Strategies......................................................................................................................4

1.4 Challenges faced in Implementing SCM...............................................................................5

Task 2...............................................................................................................................................6

2.1 About the Company...............................................................................................................6

2.2 Reason behind the forced the BPR........................................................................................7

2.3 Challenges faced in Implanting BPR.....................................................................................8

2.4 Overcoming of Challenges.....................................................................................................9

Conclusion.......................................................................................................................................9

References......................................................................................................................................10

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Introduction
This research examines two firms' supply chain management and BPR. Supply chain
management includes the transportation and storage of raw materials, work-in-process
inventories, completed items, as well as end-to-end order fulfillment from point of origin to point
of consumption (Nahgaraj & Raghuram , 2001). Businesses use Business Process Reengineering
to enhance productivity, cycle times, and quality. Business Process Reengineering starts from
scratch and rethinks current processes to provide value to customers. Noting work done in other
domains, notably SCM from a systems viewpoint, refutes the claim that BPR is a novel idea. It is
suggested that those who have already adopted the SCM concept have already re-engineered
their own processes.

Task 1
1.1 Briefing about the Organization
Amazon.com Inc. is a Seattle-based global technology firm. It is also a major economic and
cultural force. Alphabet, Apple, Meta, and Microsoft are the Big Five American tech giants. The
company was started by Jeff Bezos on July 5, 1994. "The Everything Store" originated from a
book-focused website. Amazon owns AWS, Zoox, Kuiper Systems, and Amazon Lab126
(computer hardware R&D). Ring, Twitch, IMDb, and Whole Foods are subsidiaries. August
2017, it paid $13.4 billion for Whole Foods. Amazon has disrupted sectors with technology and
mass production. It will be the world's biggest internet and live-streaming service this year.
Amazon will overtake Walmart as the world's biggest retailer outside of China by 2021. It is the
second largest private employer in the US behind GM (Amazon.com, 2022).

Amazon has a reputation for disrupting sectors with its technology innovations and widespread
appeal. On the basis of revenue and market share, it will be the world's biggest Internet
corporation by 2021. Amazon Prime, which has over 200 million users globally, helped it
overtake Walmart as the world's biggest retailer outside of China in 2021. It is the US's second
biggest private employer. Amazon also sells content through its Prime Video, Music, Twitch,
and Audible businesses. It owns Metro-Goldwyn-Mayer since 2022 and publishes books via
Amazon Publishing. It makes Kindle e-readers, Echo devices, Fire tablets, and Fire TV.

1.2 SCM of the Organization

Jeff Bezos and his team have optimized almost every aspect of the supply chain, from warehouse
storage and inventory management to delivery timetables and pricing. Amazon has reshaped the
retail business entirely via the execution of bold supply chain tactics and the use of cutting-edge
technologies. There has been significant development and innovation over the history of the
online store (Trivedi & Madan, 2018). As a result, the supply chain is being reconfigured, and
competitors are scrambling to catch up. Sellers on the Amazon Marketplace have a variety of

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fulfillment choices from which to choose. Sellers have the option of handling fulfillment
themselves or allowing Amazon to arrange, package, and ship their products via their own
fulfillment facilities.

Figure 1: Supply Chain of Amazon

1.3 SCM Strategies

Amazon is a cult. Customers choose it for one reason: fast and effective supply chain
management. Amazon's supply chain is the most efficient among all major corporations due to
superior information technology, huge warehouse network, multi-tier inventory management,
and outstanding transportation. Those efficiencies enabled today's home shopping. Listed below
are some successful SCM techniques (Elias, et al., 2021).

Outsourcing Inventory and Logistics

Amazon's supply chain relies significantly on inventory management outsourcing. Rarely

ordered items are not held in typical Amazon warehouses. It may surprise you to learn that third-
party vendors account for almost 50% of Amazon sales. According to a May 2020 Amazon
Report, third-party merchants sold over 3.4 billion goods in one year.

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In-house logistics allows Amazon to provide two-hour or same-day shipment. Amazon knows
that relying on third-party logistics will only prolong product delivery times. Thus, Amazon
employs its own delivery cars for same-day and one-hour delivery.

Customer Delivery Options

Amazon has many warehouses for various items and customers. Shipping choices accessible to
Amazon consumers include Prime, one-day, first-class, and free super saver. Amazon is a
logistical behemoth, always striving to satisfy consumer demands.

Push-Pull Supply Chain Strategy

Amazon's own warehouses are strategically located near major cities and urban regions. So it
utilizes a pure push method for items stored in warehouses, estimating regional demand.
However, it utilizes a pure pull technique for selling items from third-party vendors, fulfilling
orders one by one.

Zones and Classes

Amazon has about 800,000 workers and 110 fulfillment hubs in North America. To meet
increased delivery obligations, the business has built additional warehouses near metropolitan
marketplaces. (Walmart's online approach in China currently employs a network of mini-
warehouses to fulfill orders closer to customers.) Amazon's supply chain success depends on the
location, size, and number of facilities (Monestier, 2021). It has five storage spaces in its
warehouses. Prime storage for books and periodicals. Next, its pallet prime storage contains
high-demand full-case merchandise. On demand items are stored in case flow prime storage. Its
reserve store holds odd-shaped and low-demand items. Finally, it has a random storage section
for low-demand objects.

Automation

Amazon bought Kiva Systems, a robotics and automation solutions firm, in 2012. Amazon
Robotics was relaunched in 2015. Amazon Robotics' robots can select and pack without human
help, allowing Amazon to do warehouse tasks rapidly. Since 2015, Amazon has added about
35,000 warehouse robots every year. Amazon will have around 45,000 warehouse robots by
2020. Amazon's robots have so far been used to carry things to consumers for choosing orders.
The next generation of robots will select and pack orders itself, eliminating the need for human
labor. While Amazon has been building its warehouse robot army, other online merchants have
lagged behind. Now, however, robots are becoming popular in huge facilities as well as tiny
automation islands inside existing operations. These automated islands may be provided by
companies like Auto Store.

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1.4 Challenges faced in Implementing SCM
Given Amazon's investment in technology, it's reasonable to assume that the corporation has few
difficulties when it comes to fulfilling orders. However, because of its sheer size, it creates
difficulties in the order fulfillment process. These are some of the difficulties that Amazon must
overcome in order to deliver items to customers.

Assuring that the supply meets the needs of the market.

Consistently incorrect demand forecasting leads in customer dissatisfaction with the product or
service. Amazon solves demand and supply issues on an annual basis by stocking up on more
inventory in order to satisfy the potentially enormous number of orders on Prime Day and the
holiday season. Their decision-making is data-driven, and they depend significantly on historical
data and current client patterns to influence choices well in advance of events or holidays (Sodhi
& Tang, 2021).

Resource Planning in Preparation for Increased Order Deliveries

Last-mile delivery of items is a problem for Amazon, particularly during high seasons such as
Black Friday and Christmas. In reality, during the Christmas season of 2013, Amazon had a huge
logistical failure, which resulted in many consumers not receiving their purchases. This caused
Amazon to prepare for the possibility of taking over last-mile delivery services. The rumor mill
is ablaze with speculation that Amazon is on its way to become the world's largest shipping
provider, since the corporation is thought to be putting together its own delivery infrastructure.

Increasing the technical infrastructure to handle spikes in order volume

Despite the fact that Amazon is the owner of AWS, the world's largest cloud computing service,
the company's technological infrastructure is nevertheless saturated during the Prime Day event.
Customers have expressed dissatisfaction with the site's failure to complete their purchases
during the first few years of Amazon Prime Days. The retailing behemoth is still dealing with
technical difficulties, which it is continually working to resolve (Chiles & Dau , 2005).

Even if Amazon is a game-changer and a forerunner in the eCommerce business, this does not
imply that the company is without its share of supply chain management issues. Those who are
currently involved in or planning to start their own online stores would do well to learn from the
way Amazon operates at scale in order to meet the hurdles and is always out-innovating itself in
order to overcome new barriers.

Task 2
2.1 About the Company
T-Mobile US, Inc. is a company that specializes in the provision of cellular communications
services. Wireless services are provided to postpaid, prepaid, and wholesale consumers by the

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organization. It also offers wireless communications services to these consumers, as well as a
variety of wireless devices and accessories to complement their wireless communications needs
(Schweizer , 2006).

It was T-Mobile's mission to make its consumers happy. The purpose was basic, modest, and
apparent. However, in the telecommunications market, a happy client is not the main
performance measure. T-Mobile was in a pickle of KPIs, keeping to the telecoms industry-
standard of quick service at cheap prices. The second alternative was for the corporation to create
a new way of serving customers and transforming the way value is assessed in the organization.

2.2 Reason behind the forced the BPR

Figure 2: BPR of T-Mobile

Self-service portals technology struck a major blow to T-mobile operations. Since then, its
customers have never utilized T-contact Mobile's center services to check accounts or change
addresses. Clients were now phoning about sophisticated problems that the customer service
desk personnel couldn't manage due to their limited training, lack of local market knowledge,
and low authority. Mobile came up with a two-stage strategy for the redesigning process to deal
with the current technological advancements and client requirements. The design method
changed present processes to stay competitive with current needs. The initial step included the
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personnel who actually conduct the surgery. The second step entailed adding control to the
process by placing decision points at the end of work (Gunasekaran & Kobu, 2002).

In the first part of the project, T-Mobile set out to redesign its customer care center procedures in
order to better meet the demands of its customers. To do this, the firm transitioned completely
away from the customer service representative job set and toward knowledge-based employment.
Customer service professionals were instructed to abandon standard metrics in favor of
determining the optimal solution to a client's needs or concerns, as well as developing a plan for
retaining the client's confidence. Additionally, the company altered its staff structure, which lays
the groundwork for offering superior customer service. T-contact Mobile's center worked in the
typical fashion during its first deployment, with long queues of clients waiting to be connected
and handled by a free agent based on the phone tree (Hertweck & Rashid, 2007) Due to the
unsatisfactory scenario, T-Mobile decided to restructure the team in line with the Business to
Business (B2B) framework. The firm termed this technique the Team of Experts (TEX), and it
was meant to do particular tasks by responding to calls from specific requests. This seemed to be
effective, as the long inquiries were now quickly addressed.

The TEX model was used to alter the decision point and process, which was addressed in the T-
Mobile Business Plan Review as the second concern. Managers had a significant role in the early
stages of decision-making, which resulted in their being called upon to address minor problems
as a consequence of established processes. Due to a backlog of work coming in from all areas,
the decision-making process was slowed, and in response to customer feedback, the firm
extended the amount of time clients had to wait. As a consequence, management delegated
decision-making responsibility to customer service representatives and agents. The shift
streamlined the process and increased its importance, since the persons making the choices were
solely responsible for the job and any repercussions were totally dependent on their assessments
and decisions.

2.3 Challenges faced in Implanting BPR

Despite a few bumps along the way, the corporate redesign process proceeded without incident.
As a consequence of the corporate structure evaluation, several departments were reformed; as a
result, some workers were laid off and new ones recruited. Due to the critical nature of this
aspect of client fulfillment, the introduction of new staff resulted in a temporary halt to
operations. Management failed to conduct an exhaustive examination before to developing a plan
for recruiting new staff and restricting the teams. Making call agents the focal point of all
customer-related decision-making was a lousy concept from the outset, and it proved to be a
disaster. The call gents lacked knowledge of the decision-making process and hence made the
bulk of poor judgements. These acts may help the client while costing the company money,
which is in direct conflict with the business model's aims, or they may benefit both the client and
the firm (Schweizer , 2006).

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In other situations, the agents made judgements that disappointed the consumers, resulting in
their loss of devotion and, in a few instances, the loss of some of the clients. As a result, the
agents must get enough training in the decision-making process and the capacity to balance the
circumstances in a way that benefits both parties. However, as a consequence of being held
accountable for their actions in the majority of instances, the agents developed the ability to
make more appropriate judgements over time. Due to the procedure's ingenuity and its inclusion
of a structural redesign of the business, the corporation faced a period of financial loss as a
consequence of the process. Agents may be able to handle a specific call on a specific problem.
Due to the habit of allocating certain topics to agents, some agents were overworked, while
others had much free time.

2.4 Overcoming of Challenges

Despite a few minor issues, the T-Mobile BPR was a huge success. The reorganization of the
teams was wise. The customers could now get the correct individual to address their queries fast.
The invention of phone systems that allow callers to choose who they want to speak to was a
brilliant idea (Alotaibi & Liu, 2017). Clients' lengthy queues were minimized, reducing call and
wait time expenditures. With the addition of agent decision points, wait times became
significantly reduced. Customers' satisfaction rose from three to four stars out of five, according
to the study. The TEX framework provided the reps authority over the whole customer care
process. The circumstance was a great move for the firm and consumer connections.

Determining factors that would have decreased the probability of failure based on improper
actions are vital in the business redesign process. In the future, the organization should have a
thorough understanding of the implementation process and enlist the help of external experts.
Starting at the correct timing can help T-Mobile minimize implementation time and flexibility.
Rather of focusing just on improving technology, the organization should have performed a
thorough study of the issue and the potential solutions. Finally, the cellular carrier business
should guarantee appropriate resources are provided to minimize delays.

Conclusion
Effective supply chain management prevents the need to acquire extra resources from different
sources, avoiding higher costs and poorer profitability. Amazon's supply chain is the most
efficient among all major corporations due to superior information technology, huge warehouse
network, multi-tier inventory management, and outstanding transportation. Those efficiencies
enabled today's home shopping.

Workflow Any company has to redesign. The appropriate strategy will guarantee firm success
and competitiveness. The failure of the procedure may result in the loss of the firm. So,
organizations should handle the procedure wisely. Despite its shortcomings, T-Mobile has come
up with an excellent redesign methodology. If they wish to alter their process in the future, they
must do adequate analysis and implementation.

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References
Alotaibi, Y. & Liu, F., 2017. Survey of business process management: challenges and solutions.
Enterprise Information Systems.

Amazon.com, 2022. About Amazon.com. [Online]

Available at: https://www.aboutamazon.com/

Chiles, C. & Dau , M., 2005. An analysis of current supply chain best practices in the retail
industry with case studies of Wal-Mart and Amazon. com, s.l.: s.n.

Elias, A., Paiva, E. & Donadelli, F., 2021. Analysing the complexities of sustainable wood
supply chain in the Amazon: a systems thinking approach. The International Journal of Logistics
Management.

Gunasekaran, A. & Kobu, B., 2002. Modelling and analysis of business process reengineering.
International journal of production research.

Hashem , G., 2019. Organizational enablers of business process reengineering implementation:

An empirical study on the service sector. International Journal of Productivity and Performance
Management.

Hertweck, D. & Rashid, A., 2007. Mobile Business Process Reengineering: How to Measure the
Input. Global Mobile Commerce.

Monestier, T. J., 2021. Amazon as a Seller of Marketplace Goods Under Article 2. Google
Scholar, p. 76.

Nahgaraj, N. & Raghuram , G., 2001. Logistics And Supply Chain Management. s.l.:Mc Millan
India Ltd-.

Nguyen, T., 2020. The effects of digitalization on supply chain management from lean
perspective, s.l.: s.n.

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Schweizer , L., 2006. Convergence: a challenge for mobile telecommunication operators–the
case of the German T-Mobile. International Journal of Mobile Communications.

Siemieniuch, C., 2007. The role of 'partnership'in supply chain management for fast-moving
consumer goods: a case study.

Sodhi, M. & Tang, . C., 2021. Supply chain management for extreme conditions: research
opportunities. Journal of Supply Chain Management.

Terry-Armstrong, N., 2013. Amazon case study: Part two. Busidate.

Trivedi, S. & Madan, M., 2018. Amazon Supply Chain Management: A Case Study. Journal of
Supply Chain and Logistics Management.

Tummala, V. & Phillips, C., 2006. Assessing supply chain management success factors: a case
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