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OM in the News: Amazon Delivery Aims Electric, But Employees Want More SEPTEMBER 21, 2019 by...

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OM in the News: Amazon Delivery Aims Electric, But Employees Want More SEPTEMBER 21, 2019 by Barry Render tags: Amazon, elect
OM in the News: Amazon Delivery Aims Electric, But Employees Want More SEPTEMBER 21, 2019 by Barry Render tags: Amazon, electric vehicles, logistics, sustainability Amazon plans to buy 100,000 electric delivery new fully electric vehicles as it seeks to reduce its carbon emissions in the face of criticism of its environmental CLIMATE impact, reports The Wall Street Journal PLEDGE (Sept. 20, 2019). The e-commerce giant is ordering the electric vehicles from startup Rivian Automotive, in which it invested $700 million this year. Amazon said the vehicles will start delivering packages to customers in 2021. The company plans to have 10,000 of the new electric vehicles on the road by 2022, and all 100,000 by 2030. Amazon has built up its delivery fleet in recent years and has become a force in the shipping industry, although it still works with companies such as UPS. The sustainability commitments are part of a new climate pledge that promises Amazon will report greenhouse-gas emissions regularly and implement strategies to reduce carbon emissions. Amazon said it expects 80% of its energy use to come from renewable sources by 2024, up from 40% now. It is working toward its facilities being 100%-powered using renewable energy by 2030, helped in part by the development of large-scale wind and solar projects. Amazon's climate pledge comes one day before more than 1,550 Amazon employees world-wide threatened to walk out of work if the company didn't do more to fight climate change. The group of Amazon employees said that the company's announcement was a win, but said they still plan to walk. "The Paris Agreement, by itself, won't get us to a livable world. Today, we celebrate. Tomorrow, we'll be in the streets," Classroom discussion questions: 1. What are various components of Amazon's delivery strategy? 2. Should employees be able to dictate the firm's sustainability strategy? okies. By continuing to use this website, you agree to their use. control cookies

Answers

1.
Amazon is American company that works in the field of e-commerce business.
It is the largest online retail platform in the world. It has its business done almost throughout the world.
Amazon is owned by Jeff bezos.It is currently counted in the world's top 4 companies.


The various components of Amazon delivery strategies are:

A. Vast distribution network:

  • Amazon has loyal customer base who has subscription to Amazon prime program.
  • Where the goods are delivered within 2 days without delivery charges.
  • Amazon has 175 fulfillment centre across the globe and it covers one 15 million square feet area.
  • To fulfill vast distribution network it has 2 program :
  1. fulfillment by Amazon.
  2. FBA onsite.

B. Transportation and delivery fleet:

  • Amazon delivery fleet has a number of variety of transportation method it includes trailer trucks to carry more than 2000 boxes form fulfillment centre to sortation centre.
  • For prime 2 day delivery it uses airplane fleet.
  • Amazon has started using drones to make delivery more easier and faster to the home of customers.

C. Blend of humans and automation:

  • The combination of humans and machines has enabled the Amazon to ensure streamlined processes and efficiency.
  • Amazon uses robots in its warehouse to pick products packages and to load and unload inventory.
  • Amazon robotics and human employees work together closely to improve safety and streamline processes and improve efficiency.
  • Robotics managers 40% of Amazon inventory.

2.

Sustainable development statergy.

It has introduced electric vehicles to fulfill the demands of its employees for sustainable development goals.

The electric vehicle will reduce millions of metric tons of carbon per year.
  Amazon will start using 100 percent renewable energy by 2030.
The Amazon is all ready moving towards the strategy of sustainable development.
so the employees will play an important role in attaining sustainable objective rather than dictating these strategies.

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