The advent of technological sophistication at Amazon Go has enhanced the shopping experience quite an extraordinary manner, which makes the store to float above other stores (Wingfield, 2018). The installation comprises of hundreds of small cameras above store shelves within the store. There are also turnstiles, which scan customers' smart-phones to charge for items bought. Additionally, through machine learning software and computer vision, the store can monitor customer's activities, and hence shoplifting becomes impossible. There are different ways of achieving effective operation management by using the 4V regarding value, variety, variation, and visibility.
The use of 4Vs, visibility refers to the ability of consumers to track their respective shopping patterns and items bought from the store (Daily, (2011). This aspect of 4V was catered for in Amazon Go through the customers' online shopping accounts. If customers take things from the store shelves, there are automated ways of adding them into the turnstile. Lists of goods bought are accessible on the virtual basket within the shopping app. Therefore, customers can monitor financial deductions made by Amazon Go in paying for items acquired from the store. Moreover, persons can also efficiently track their monthly, weekly or daily spending at the comfort of their smart-phones app (Wingfield, 2018). However, it is laborious to follow spending patterns when using credit cards and receipts from other supermarkets.
Variation refers to the company's ability to tailor services according to their clients' needs. Once in the store, the customer puts an item into their bags, the installed software adds it to the virtual basket. Hence, when inside the store, there are no needs for carrying shopping baskets or carts to facilitate payment like those of ordinary supermarkets. Therefore, consumers have the advantage of walking into Amazon stores with their shopping bags, picking whatever they need before walking out of the stores, because of automatic payment. It eliminates the laborious procedures of removing credit cards from the pocket and issuing them to cashiers to pay for the goods taken from the store.
Variety dimension refers to the efficiency with which customers attain various goods and services (Daily, 2011). Automated payments of different products acquired from customers' credit card accounts by the store inculcate variety. Additionally, when a customer returns an item on the shelves because of doubts or mistaken picks, it can also automatically be removed from the virtual basket (Wingfield, 2018). This enhances efficiency because persons do not waste time in queues waiting to make payments like in other supermarkets. Even with the technological sophistication, Amazon Go still has some employees within the supermarket to help customers. These employees usually help customers in troubleshooting arising problems. They always mill about in readiness to assist customers in finding items that they need. Additionally, the store also has a kitchen with chefs at the next door to prepare different meals for sale at the store. There is thus availability of ready-to-eat snacks, breakfast, dinner, and lunch. Additionally, the store achieves the aspect of the volume by the vast quantities of quality food that they serve. Furthermore, food is attainable to customers at reasonable prices when compared to their respective qualities.
Impacts of Operations on Triple Bottom Line at Amazon Go
The triple bottom line in companies refers to the general concept of seeking to broaden the financial bottom line focus while ensuring inclusion of environmental and social responsibilities (Stratechery, 2018). Operation of Amazon Go may impact Amazon's triple bottom line in numerous ways. On the environmental aspect, the store has enhanced cleanliness by the use of electronic receipts that customers receive in their smart-phones when walking out of the store gates. As opposed to the traditionally printed receipts that may end up cluttering the environment.
Economically, Amazon Go boosts operations to realize significant profit margins (Stratechery, 2018). This is through the combination of marginal and fixed costs that ensures additional customers will result in profits without increasing spending in the store. Installation of technology at Amazon Go eliminates minimal cost from cashiers. In that, the store sales items require time from cashiers and translate to store operator money. Selling more items needs more time, which would make the store increase revenue costs. However, installation of technology eliminates operations of cashiers and thus removing instances of accruing marginal costs.
On the other hand, fixed costs like rent payment exist regardless of the monthly numbers of customers served in the store. The smartphone readings, sensors, and cameras are fixed costs for Amazon Go regarding buying and installation. Additionally, the underlying system that makes the technology work formed part of the set costs that were spent by the store to the higher side. Even so, the more customers served, the better because the store will have managed to achieve the required leverage at a fixed cost.
In the social context, installation of sophisticated technology has enhanced shopping experience to the customers. Because of the smart-phone app, shopping has been made easier and thus instills enjoyment opportunity to the society. Technology installation enables the store to charge for the goods bought from respective accounts through automated payment. Hence, spending lots of time for checkout processes has been eliminated. The clogged line for customers and cashiers at self-checkout kiosks that is socially tiresome is now a thing for other supermarkets. Nonetheless, there are reduced employment opportunities for potential workers and previous employees. Families that relied on the store to make ends meet are currently in distress after losing their jobs to the installed technology. Even so, there remain a handful of workers at the kitchen to cook and serve customers (Stratechery, 2018). Other employees also walk into the store to help customers in troubleshooting. Nonetheless, the decline in employment opportunity in the stores impacts the organization negatively concerning social responsibility.
What is Quality for Amazon Go Customers?
Quality achievement in the store occurs in four folds that include; effective design, effective improvement, quality assertion and eminence in regulatory process (Methord123, 2018). Installation of technology to reduce time wastages enhances quality in the store. Automation in payments in the store improves quality planning and quality assurance, which makes shopping an enjoyable experience for customers. Technology installation enhances charging for groceries picked through their account in an automated fashion. Hence, it exempts customers from wasting time because of slow checkout processes existing in other supermarkets and enhance quality improvement. Clogged lines of customers and cashiers at self-checkout kiosks are now only in other supermarkets.
Neat arrangements of items in the store also pacify quality planning to customers. It is easy to obtain products and even food needed by customers because Amazon Go has organized neat arrangement of items on its shelves. It facilitates persons in quickly picking whatever they need from the store shelves. Additionally, their kitchen is also well organized and serves high-quality food at reasonable prices. Amazon Go has a range of whole food to meet the appetites of customers. Persons can thus arrange breakfast, lunch, snacks or super because of assured quality of food. Additionally, they have fresh grocery at the disposal of all customers. These also enhance quality because customers do not face challenges of picking groceries that have gone bad. Effective customer services inculcate quality control at Amazon Go. Regardless of the technological sophistication and inherent planning, the store still strives to provide quality service to consumers. Within the stores, there are persons ensuring that customers attain all that they need. Customers can thus approach these employees when they need anything but have difficulties in finding them. Additionally, these employees also enhance quality control by ensuring that the shelves are well stocked. If groceries and other items become depleted, these employees always promptly restock them. This control provides that customers can acquire all their needs with regards to their availability in the store.
Five Performance Objectives of Operation Management
The most important performance objective is quality. It refers to engaging in right activities with the intention of ensuring the provision of error-free goods and services that satisfy customers' needs (BusinessEssays.net, 2016). Additionally, adhering to conformance of products specifications to ensure that the quality of goods and services are as required and lack whatsoever compromises. Achievement of quality at Amazon Go embedded in goods displayed and sold to customers. Additionally, the food served to customers meet conformity, and thus persons enjoy prepared whole food from their kitchen.
Speed refers to the aspect of minimizing time spent between when the customer makes an order to the time when they receive goods and services (BusinessEssays.net, 2016). Amazon Go has ensured that customers have speedy experience in the acquisition of goods. Because of technological sophistication, customers only activate their apps at the gate, before proceeding to pick up whatever they need and living the building.
Dependency refers to enhancing operations with the intention of ensuring customers attain goods and services on time to enhance customer satisfaction (BusinessEssays.net, 2016). Amazon Go has eliminated the laborious long queues at checkout points with the intention of paying for the goods acquired. Because by using the turnstile app, the store can adequately receive money as per the cost incurred in purchasing products or eating meals.
Flexibility indicates firms' ability to change operations with the intention of coping with dynamics of the business environment (BusinessEssays.net, 2016). It entails products and services flexibility, volume flexibility, delivery flexibility and mix flexibility. Amazon Go ensures service flexibility by inculcating ease for purchasing of goods through the installation of technological software. Additionally, there are persons within the store that provides customers receive additional assistance in attaining their goods and services.
Finally, cost refers to adjusting or lowering the price with which customers pay as charges to attain goods and services from a store (BusinessEssays.net, 2016). Customers are attracted to low prices for products and services. Operation cost reduces because of eliminated marginal cost by removing the role of cashiers from the firm. This intern result in a discount for the goods and food obtained from the store.
Operation strategies at Amazon occur through five operation management objectives of speed, quality, flexibility, cost, and dependency. The store has prioritized firstly on quality, then speed, followed by dependency then flexibility and finally cost. Such scenario enhances its operation in the competitive environment of the retail stores.
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