Amazon and FedEx are some of the largest players in the commerce sector that handle millions of orders daily. These companies embody the current American perspective of fast service. American commerce is increasingly marked by the need for swift processing, fulfilling, and delivery of orders (Kayikci, 2019). Companies in the e-commerce sector develop competitive advantage if they can be faster than other firms in delivering consumers' orders. To manage the complex and extensive system, the two companies employ systems theory to integrate and streamline the handling of operations such as receiving supplies from third parties, managing employees, and anticipating customer demand, among others (Kayikci, 2019). These companies develop systems that have a stable state achieved when various forces reach an equilibrium. They, however, strive to attain dynamic equilibrium by taking in data from the environment and incorporating it into the improvement of the systems. For instance, Amazon accepts feedback for each transaction. The customers provide insight into their experiences with the company. Both FedEx and Amazon are also keen on developing technology such as unmanned aerial vehicles and other forms of automation to improve their service delivery. Amazon experiments with drones for the delivery of small packages. Data from a system's internal and external parties reinforces desirable output and discourages behavior that reduces value to various stakeholders.
The supply chain management aspect is the core element of commerce companies. It is necessary to manage the supply chain such that costs are minimized, and efficiencies are created to ensure the customers receive their products in time. An effective supply chain management optimizes resource utilization such that customers receive higher value from place and time utility (Copacino, 2019). Consumers may be willing to pay a premium for products that guarantee small delivery timelines. Both FedEx and Amazon have networks of warehouses that hold products from third party businesses. These warehouses stock products in anticipation of demand patterns. The companies also employ sophisticated warehouse management software to track inventory and optimize space in the warehouses. The companies also have mini-warehouses that handle stock to reduce supply bottlenecks that would reduce the ability of each company to meet consumer demand (Kayikci, 2019). Each company also has fulfillment centers that relieve the pressure of transaction volume of the e-commerce companies. Fulfilment centers involve outsourcing operations around the processing of business to business and business to customer orders. Fulfilment centers allow e-commerce companies to scale their operations. That packaging of orders is a crucial aspect of order processing. Standard packaging systems reduce the complexity in handling orders in various stages of processing. It also allows the employment of robots in tasks such as loading and offloading as well as labeling of orders. Amazon and FedEx have extensive networks of vehicles to transport packages to various destinations. The companies also outsource some transport functions. The supply chain management strategies employed by the two companies are customer-centered. The primary objective is speed. For instance, Amazon consumers pay a premium for the one-day shipping product. The company, therefore, utilizes the country's infrastructure and internal capabilities to ensure the products reach consumers as fast as possible.
To ensure customers have their products NOW, it is essential to manage the location of warehouses. Warehouses are located in population hubs such as large metropolitan areas that have many customers. There are mini-warehouses located in smaller population hubs. These mini-warehouses handle smaller volumes of orders (Copacino, 2019). Certain products, such as one-day shipping, are offered within certain areas only. These are the areas closest to these warehousing units. The companies outsource certain services such as the fulfilment centers and some aspects of transport such that they meet customer demand when a company's resources are constrained. The companies also employ continuous improvement to ensure any shocks to the markets are absorbed by each company well. Technology changes rapidly. To avoid obsolescence, the companies invest in research and development to develop innovations necessary for improving operational efficiency.
Systems thinking allows companies to take advantage of all elements in their systems. E-commerce companies are complex. With such complexity comes various problems. Systems thinking creates ways of approaching these problems as opportunities for growth. Through systems thinking, innovation, and creative development are harnessed to develop sustainable solutions to problems. Systems thinking examines the entire system rather than looking at its subsets (Copacino, 2019). Therefore, this thinking allows the development of solutions to problems that are applicable to the whole system rather than focusing on problems in isolation. Systems thinking is also essential in reducing inefficiencies in various processes. Systems thinking encourages creativity and innovation while also embracing failure as part of the learning process. Systems thinking provides customers with NOW solutions. Consumer preferences for quick service promote competition among commerce companies. Such competition leads to the development of solutions that are proactive in anticipating consumer demand and meeting it. Companies that fail to adapt to consumer demands fail to be profitable, and they may exit the market. Companies benefit from developing efficiencies and products that generate a competitive advantage to ensure they generate sustainable growth to maximize shareholder value.
Copacino, W. C. (2019). Supply chain management: The basics and beyond. Routledge.
Kayikci, Y. (2019). E-Commerce in Logistics and Supply Chain Management. In Advanced Methodologies and Technologies in Business Operations and Management (pp. 1015-1026). IGI Global.
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Essay Sample on Amazon & FedEx: Companies at the Forefront of Fast American E-Commerce. (2023, Mar 25). Retrieved from https://proessays.net/essays/essay-sample-on-amazon-fedex-companies-at-the-forefront-of-fast-american-e-commerce
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