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Assignment 2 - Managerial Report: Amazon
1
Managerial Report:
Amazon’s Warehouse Management
Group 1 Team A:
Weiming Cai
Jia Dong
Xuanxu Luo
Victoria Molins
Heba Wahba
Boston University, Metropolitan College
MET AD 856 Market and Economic Research and Analysis
Professor Valorie Luther
October 2, 2023
Assignment 2 - Managerial Report: Amazon
2
Table of Contents
Executive Summary
....................................................................................................................................................
Theoretical Model
.......................................................................................................................................................
Market Research Design
.............................................................................................................................................
Conclusion
..................................................................................................................................................................
References
...................................................................................................................................................................
Assignment 2 - Managerial Report: Amazon
3
Executive Summary
Amazon, the American multinational technology company focusing on e-commerce among its many verticals, has a warehouse system that heavily influences its success. Amazon fulfillment centers not only store their products but also store inventory for third-party sellers. Comprehensive research will be conducted to analyze the possibilities for improvement on their warehouse system. The company has extensively worked on reducing delivery times to two-day and same-day delivery, making it increasingly difficult for similar retailers to challenge.
Despite Amazon’s advances to stay at the forefront of the industry, it still faces challenges in its supply chain management. The warehouses require abundant human resources, strict management, and an operational staff that needs to ensure the system is being used correctly and ethically. Amazon still faces problems regarding warehouse logistics, operations, inventory, and order processing. The company needs to increase efficiency to optimize customer satisfaction.
Now that the problem has been identified, the market research design entails the approaches we will use to gather information to be better equipped to make the decisions that will ultimately help to improve warehouse efficiency and customer satisfaction. The research method will include distributing questionnaires to customers with recent experiences, including closed-ended questions, using SurveyMonkey to collect responses. As this approach is taken, enough data will be collected to decide what the next step for Amazon should be.
Theoretical Model
The theoretical model for the project can be outlined as follows:
●
Problem Identification:
The first step is identifying the management decision problem
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(MDP) and market research problem (MRP) Amazon faces.
Management Decision Problem (MDP):
To optimize efficiency and customer satisfaction, Amazon must make management decisions regarding its warehouse operations, including logistics, inventory, and order processing.
Market Research Problem (MRP):
Given the significance of a reliable digital warehouse management system for Amazon's operations, this report focuses on finding ways to upgrade the existing warehouse management system to improve efficiency and speed.
●
Data Collection and Analysis:
The next step involves collecting relevant data and information related to the MDP and MRP. This can be done through secondary research methods. The data collected should provide insights into the current warehouse management
practices and identify areas needing improvement. Once the data is collected, it must be analyzed to determine patterns, trends, and potential solutions to the identified problems. This can be done through various analytical techniques such as statistical analysis, qualitative analysis, and data mining. The study should provide a clear understanding of the challenges faced by Amazon and potential strategies to address them.
●
Strategic Decision-Making: Based on the analysis, strategic decisions must be made to address the MDP and MRP. This involves identifying potential solutions, evaluating their feasibility and potential impact, and selecting the most appropriate strategy. The decision-
making process should consider cost-effectiveness, scalability, and alignment with Amazon's business goals and objectives.
●
Implementation: The selected strategy needs to be implemented effectively within the organization. This involves designing and implementing the upgraded warehouse
Assignment 2 - Managerial Report: Amazon
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management system, training the staff on new processes and technologies, and monitoring the implementation process to ensure its success.
●
Evaluation and Monitoring: Once the upgraded warehouse management system is implemented, monitoring its performance and evaluating its effectiveness is essential. This can be done through various performance metrics such as inventory accuracy, order processing time, customer satisfaction surveys, and cost-efficiency measures. The evaluation and monitoring process should identify potential issues or areas for improvement and allow for system adjustment if necessary.
●
Continuous Improvement: Finally, the theoretical model should emphasize the importance
of constant improvement. Warehouse management is an ongoing process that requires regular evaluation, adjustment, and optimization. Amazon should continuously strive to improve its warehouse management system to stay competitive and meet the evolving needs
of its customers.
Market Research Design
●
Research Goals
To understand how consumers perceive the Amazon warehouse system, our research team decided to focus on customer satisfaction. By collecting and examining customer feedback, we hope to optimize Amazon's digital management system in its warehouses. The goal is to improve the customer experience and ultimately boost satisfaction levels.
●
Research Methods
We will develop a questionnaire covering order processing time, logistics, speed, and packaging quality. The questionnaire is mainly of closed-ended questions and will be administered using the horizontal survey method for targeted consumers to ensure timeliness and effectiveness. The primary focus of the questionnaire will be on consumers with past
Assignment 2 - Managerial Report: Amazon
6
shopping experience on the Amazon platform. Choosing SurveyMonkey as our primary online survey tool will enable us to deliver and collect data through online questionnaires effectively.
●
Questionnaire Distribution
Depending on the initial feedback, we will do a small-scale forecast before the questionnaire is formally released to modify and improve the design. It will assist us in ensuring that the questionnaire is appropriately constructed to efficiently gather data in the future.
After the questionnaire adjustment and optimization is completed, we will send questionnaires to users who have purchased Amazon products through various network channels, such as social media platforms and emails. This kind of closed-ended question survey allows consumers to give centralized feedback on their suggestions to Amazon. Improving warehouse management can improve service quality, while online questionnaires
will only consume a little time and energy, so this survey method is the most reasonable and
feasible.
●
Data Analysis
Once we have gathered all the necessary data, our next step is to perform qualitative data analysis. Our aim is to gain an impartial comprehension of how consumers perceive Amazon's warehouse operations. To achieve this, we will employ quantitative analysis tools,
which allow us to eliminate any potential consumer bias and present more persuasive data.
●
Results Report
After considering the feedback and recommendations of consumers, we will compile an in-depth research report that will summarize discoveries. The report will provide a factual
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basis for strategic recommendations to enhance the functionality of Amazon's warehouses. To offer concrete data and proposals to improve operational efficiency, logistics, and ultimately enhance customer satisfaction.
Conclusion This report aims to delve into optimizing Amazon's warehouse logistics and management, thereby increasing efficiency to improve customer satisfaction further. In order to achieve this, we identified the existing MDP and MRP and looked for ways to upgrade the existing warehouse management system. We then used second research to collect data and information, perform modeling analysis, develop an improvement strategy, and select the most appropriate solution after considering cost-effectiveness, scalability, and alignment with Amazon's business objectives. After developing the solution, we likewise describe the implementation plan and supervision of the solution to observe the effects and emphasize the continuous modification of the theoretical model to achieve better results.
In the second part of the report we focus on the market research design, specifying the research objectives and identifying a questionnaire as the research method. We also conducted a small-scale prediction before distributing the questionnaires widely to optimize the rationality of the questionnaires. Through the cross-sectional survey method, we effectively collected the opinions of Amazon consumers with shopping experience. Finally, through data analysis, we summarized consumers' main views and opinions, providing empirical evidence and strategic recommendations for optimizing Amazon warehouses.
Assignment 2 - Managerial Report: Amazon
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Overall, this report aims to discover the existing deficiencies of Amazon.com through in-
depth research and strategic analysis of the market and to improve its warehouse system, which will ultimately lead to increased user satisfaction.
Assignment 2 - Managerial Report: Amazon
9
References
Rawat, A. S. (n.d.). How does Amazon use Warehouse Technologies?. Analytics Steps. https://www.analyticssteps.com/blogs/how-does-amazon-use-warehouse-technologies
Guendelsberger, E., & On the Clock: What Low-Wage Work Did to Me and How It Drives America Insane. (2019, July 18). Amazon treats its warehouse workers like robots: Ex-employee.
Time. https://time.com/5629233/amazon-warehouse-employee-treatment-robots/
US Department of Labor finds Amazon exposed workers to unsafe conditions, ergonomic hazards at three more warehouses in Colorado, Idaho, New York
. DOL. (n.d.). https://www.dol.gov/newsroom/releases/osha/osha20230201-0
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