Customer Service Strategies and Operational Management at Amazon

Lewis and Slack (2003) explained that because of the challenges like continuous advancements in technology and globalisation, the market trends are also changing rapidly, hence there is definitely need for the managing team of a business organisation to respond accordingly.

According to Lewis and Slack (2003), the most essential role for the management teams of the business organisations is to attain efficiency in its overall operations, especially in regards to the management of the supply chain. Supply chain is an essential process included in the customer Service Strategy of a company. In this regard Lewis and Slack (2003) stated that customers prefer product that is easily available and has the right quality, hence it is essential for the companies to provide quality products at the right time in order to ensure the higher satisfaction level of the customers.

Davies (2013) states that the management team at Amazon focuses on four core elements which are as follow

• To be positive
• To be determined
• To provide quick positive response to the customers
• To take responsibility for every action
Kantor & Streitfeld (2015) states that Amazon gives its employees proper guidance on how to satisfy its customer, while fulfilling their needs and answering them their queries, as the company aims to be customer-centric company. This further helps its employees in understanding how thing work at Amazon and further helps them in encouraging its employees to use their abilities in order to satisfy the customers. Hullinger (2013) states that Amazon is not competitor obsessed, it is customer obsesses as they start with what its customers need and work backwards.

In this regard, Jeff Bezos CEO of Amazon said “Serve the needs of the customers” At Amazon it is believed that an empty chair relates to the most important person in the company as they think that
“Focusing on the customers and their needs makes an organisation more resilient” Moreover at Amazon every employee should be able to work in a call centre as the management believes that they should understand their customers instead of just listening to them. Amazon also encourages its employees “to never settle for 99 % as they are not satisfied until its 100%”. 3.2 Managing capacity and demand Chase (2006) states that efficient management of the supply chain is not enough, as the operational manager should also forecast the demand so that the stock level could be maintained and no shortage or overflow should occur. In order to ensure manage the capacity and demand of the products, Amazon has been forecasting the demands for the products in order to make sure high quality and quick response to the customers.

For this According to Lewis & Slack (2003) in order to provide an appropriate amount of capacity at any point of time, it is necessary for the business organisations to plan the capacity while judging the effects on its operations like costs, revenue, working capital and service levels in regards to the speed, quality, dependability and flexibility. In this regard Kachru (2009) stated that there are three main requirements for forecasting the demand which are:

It should be expressed in the same unit as capacity, for instance per year, machine hours,
space, required operatives etc.
 It must be as accurately possible, hence Amazon should measure the time lag between
changing the capacity into finished goods
 It should have the knowledge of demand statistics
Varia & Mathew (2014) states that Amazon has employed a simple queuing system with high
variability wider distribution system that allows the company to reduce its overall distribution
process time efficiently.

Hullinger (2013) states that Quantum retail technologies have developed smart system software for forecasting purposes, which can be used by Amazon in order to increase the efficiency of its overall operations. The software will help the company in managing its stock levels through end to end periods and it will also help them in calculating the time periods for recording the goods. This software will further help the operation manager of Amazon in ensuring high-quality services and quicker delivery of the products to the end consumers in an efficient manner. While this software will help retailers in avoiding stock getting superseded, which will further lead to the attainment of the ultimate goals of the company i.e. provision of high quality and trending products to the ultimate consumers.

 

References

Chase. (2006). Operations Management for Competitive Advantage, Tata McGraw-Hill
Education, pp:40

Davies, P, B. (2013). Business Information Systems, Palgrave Macmillan.

Hullinger, J. (2013). 13 Secrets of Amazon Warehouse Employees, Available online at:
http://mentalfloss.com/article/61249/13-secrets-amazon-warehouse-employees [Accessed on
04/01/2019].

Kachru, U. (2009). Production & Operations Management, Excel Books India.

Kantor, J and Streitfeld, D. (2015). Inside Amazon: Wrestling Big Ideas in a Bruising
Workplace, Available online at: http://www.nytimes.com/2015/08/16/technology/inside-
amazon-wrestling-big-ideas-in-a-bruising-workplace.html?_r=0 [Accessed on 03/01/2019].

Lewis, M. & Slack, N. (2003). Operations Management: Critical Perspectives on Business
and Management, Taylor & Francis.

Varia, J. & Mathew, S. (2014). Amazon Web Services – Overview of Amazon Web Services,
Amazon Web Services Report.

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