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Value-Added Workflows of Amazon
It is considered that, among similar major companies, Amazon’s logistic solutions and innovations are the best and the most effective. For example, what allowed the company to gain a competitive advantage and execute unique value-added workflows was its attitude toward time and customer experiences. As stated by researchers, unlike other shipping companies that only deliver during working hours, “Amazon Logistics fulfills orders during hours that were once considered “off-business” – late at night and even on New Year’s Day” (PowerDigital, 2021, para. 14). What is more, persons who deliver goods are not Amazon’s workers, which enables the company to reduce costs on transportation and avoid paying for benefits or insurance.
Benchmarking and Copying Amazon
While some shipping companies can currently copy Amazon’s logistics decisions, it has been challenging to bring these capabilities to the market earlier. First of all, only today’s technologies allow the company to monitor its third-party delivery drivers’ schedules, locations, and other relevant information. Further, the majority of similar businesses are more concerned with the experiences of every individually taken customer. At the same time, Amazon is concerned with overall satisfaction, meaning that it trusts unemployed people to deliver orders, not worrying about the quality of each delivery. Consequently, not all companies are ready to accept such a risk. Finally, it is also challenging for many businesses to allocate their resources correctly to afford everyday deliveries to satisfy their clients.
Moving Takeaways to Action for Others
Amazon Logistics may teach numerous valuable lessons for other firms to improve their workflow and value-creation capabilities. For example, organizations need to offer their clients exclusive options not provided by other companies. Second, in some cases, individual experiences matter less than the general satisfaction rates, so some decisions that focus on the latter can be made. Finally, it is never too late to enter the market and offer new possibilities and alternatives to become competitive, even when it seems that other businesses are already offering everything valuable.
Reference
PowerDigital. (2021). What is Amazon’s logistics?
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