Section III: Product breakdown and item sourcing
Product bill of materials
The Amazon Echo Spot is among the latest products that the company has put in the market with the hope of gaining more patronage. The company sources its raw materials from underground or other plants that are located all over the world. Even though Amazon is the maker of these products, various companies come together to make it available in the market. Its manufacture utilizes wood and some of the rarest forms of metals in the world today, for instance like Indium and gallium.
Many of these materials are applied in the cycle of the product are used in its manufacturing stage. They are used in manufacturing circuit boards and silicon chips. The company sources typically these raw materials from all over the world. The aim is to assemble these materials and manufacture the products at a cheap as compared to using third parties. At the same time, they are an indispensable element of the supply as it boosts the manufacturing function.
Section IV: Supply Chain
Those who sell on the Amazon platform have different objectives with their products. However, the company s to have its products sold at the right time and the correct prices. It can achieve this thanks to an effective supply chain. Being the newest product in the market by the company, Amazon wants Amazon Echo Spot to be well patronized. Thus its supply chain is designed to reduce the product lead times. The main activities entail manufacturing using the appropriate technologies, reducing the product lead times, and timely delivery ones the customers place their orders.
The main attributes of the company’s distribution approach are manufacturing, warehousing, technologies, delivery of the products to the customer. They are as detailed below. Don't use plagiarised sources.Get your custom essay just from $11/page
Warehousing
Some of the marketing successes registered by the company regarding this product are hinged on the warehousing aspect. It is tailored to ensure that the Echo Spot products are readily available and accessible to the clientele for secure patronage. The company serves that the global market is meaning that its products are available to every customer. All of Amazon’s warehouses are strategically located close to big metros as well as population hubs. Its inventories are spread in different locations to ensure that the supply chain meets that demand by the customers. Being a new product in the market, the customers want to have it available.
The company ensures that there are small warehouses in smaller regions as a way of ensuring that customers can make orders and that they are delivered within the shortest time. This approach is regardless of the product being purchased. The optimization is done internally. Everyone has five unique storage regions. This organizational strategy is crucial since it allows every team member as well as pick-and-pack robots to pull products promptly, thus moving them close to delivery. At this point, the idea is to ensure that customer orders are delivered on time to enhance customer satisfaction. This aspect is the pillar of its operations.
Delivery
The delivery function is vital to the marketing successes enjoyed by the company. The company giants an edge through the diversification of the delivery options. The delivery times are designed to ensure that the customers get their products at the fastest options. For instance, Amazon has the free, prime now, two-day excellent deliveries, among others that help customers get their products almost immediately the place orders.
The aim of the delivery function in the supply chain is to ensure that the customers get their products at the right time. There are instances when the customers can get their preferred products in their backyards through drones. The aim of all these is to inspire customer loyalty amongst its target market. Timely delivery is essential since it will make the customers have confidence in the organization that it can indeed deliver their Echo Spot products once they purchase them.
Technology
The Amazon supply chain makes the most of technology. Amazon has applied robotics and numerous automation both in picking and packing customer orders as well as inventory management. These tools are used in enhancing the company’s efficiency as well as product delivery speeds. In this way, the company can cut down on warehousing as well as the costs meant for staffing. Through the application of Amazon Prime Air, the company can deliver the orders at the quickest time possible.
The drone approach is aimed at ensuring that the customer gets their products in less than thirty minutes after the order is placed.
Manufacturing
Amazon Echo Spot manufacturing is not outsourced for the sole purpose of lowering the manufacturing cost. This product is branded to enhance product visibility. Despite the company being one of the biggest online retailers globally. It is continually implementing ways that can make it better at all times. Thus it can withstand the pressure that comes with the competitive nature of its industry of operations.