BUS FPX 3022 Assessment 3 SCM Case Analysis: Information Technology

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Capella University

BUS-FPX3022 Fundamentals of Supply Chain Management

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Date

Amazon’s Information Management Systems Analysis

Information management systems (IMS), also referred to as management information systems or database management systems, encompass digital information storage, processing, and analysis software, platforms, and infrastructure (StudyCorgi, 2020). These systems are crucial in large corporations like Amazon, particularly as organizations expand, making management oversight increasingly complex. In the analog era, managing the low-level activities of a massive hierarchical organization was impractical. However, modern companies generate vast amounts of data that, if effectively utilized, can offer detailed insights at various levels, from the store to the shelf, making actions more informed (StudyCorgi, 2020).

Amazon’s Dependence on IMS

As one of the world’s largest logistical enterprises, Amazon heavily depends on IMS for various operations, including inventory management and enabling retailers to utilize the Amazon platform to sell their products (StudyCorgi, 2020). The company employs numerous backend software for internal processes and frontend resources for sellers, all aimed at leveraging data to enhance insight, efficiency, and profitability.

Enhancing Customer Experience

Amazon’s effective implementation and utilization of IMS directly contribute to its primary objective of delivering profitability to shareholders while also enhancing the core value proposition to customers (StudyCorgi, 2020). IMS ensures reliable order placement and timely delivery of goods, minimizing logistical issues such as lost products or inaccurate inventory counts.

Automation in Fulfillment Centers

Within Amazon’s fulfillment centers, IMS plays a crucial role in orchestrating operations. The utilization of barcodes and sophisticated algorithms coordinates employee movements, optimizes product picking routes, and facilitates sorting and packaging processes (Day, 2021).

Impact on Sales and Customer Satisfaction

The data available to Amazon through IMS enables features like “Customers Also Bought,” contributing to additional sales and enhancing customer satisfaction (Davis & Ali, 2021). The platform’s ability to fulfill customer needs quickly and efficiently further drives customer loyalty and satisfaction.

Market Dominance and Competition

Amazon’s robust IMS infrastructure has helped it maintain market dominance despite increasing competition, such as Walmart’s investment in e-commerce (Perez, 2020). Amazon’s ability to handle millions of daily transactions flawlessly underscores the critical role of IMS in sustaining its position as a leading online retailer.

The Future of Automation and Ethical Considerations

While automation continues to drive efficiency and profitability, concerns arise regarding its impact on the workforce and society (Day, 2021). As companies like Amazon increasingly automate operations, ethical considerations surrounding job displacement and wealth distribution become more pressing.

Conclusion

In conclusion, Amazon’s success is intrinsically linked to its effective utilization of IMS, which underpins its operations, customer experience, and market dominance. However, as automation advances, ethical considerations regarding its societal impact must be addressed to ensure progress benefits all stakeholders.

References

Davis, D., & Ali, F. (2021, September 15). Prime membership and broad selection drive sales for Amazon. Digital Commerce 360. Retrieved October 18, 2021, from https://www.digitalcommerce360.com/article/amazon-prime-membership/

BUS FPX 3022 Assessment 3 SCM Case Analysis: Information Technology

Day, M. (2021, September 21). In Amazon’s flagship fulfillment center, the machines run the show. Bloomberg.com. Retrieved October 18, 2021, from https://www.bloomberg.com/news/features/2021-09-21/inside-amazon-amzn-flagshipfulfillment-center-where-machines-run-the-show

Perez, S. (2020, June 8). US e-commerce sales to jump 18% in 2020, but not enough to offset retail’s decline. TechCrunch. Retrieved October 19, 2021, from https://techcrunch.com/2020/06/08/u-s-e-commerce-sales-to-jump-18-in-2020-but-notenough-to-offset-retails-decline/

StudyCorgi. (2020, October 26). Amazon.com company management information systems. Retrieved Oct. 18, 2021, from https://studycorgi.com/amazon-com-companymanagement-information-systems/

BUS FPX 3022 Assessment 3 SCM Case Analysis: Information Technology