MINISTRY OF EDUCATION AND TRAINING HCMC UNIVERSITY OF ECONOMICS AND FINANCE FACULTY OF INFORMATION TECHNOLOGY FINAL REPORT TOPIC The impact of globalization on supply chain management Course Title Sup.
WHAT IS GLOBALIZATION
Globalization refers to the increasing interconnectedness of the world's economies, cultures, and populations through cross-border trade of goods and services, technological advancements, and the movement of investments, people, and information This phenomenon promotes economic growth, cultural exchange, and global cooperation, shaping a more integrated world Understanding globalization is essential for recognizing its impact on international markets, workforce mobility, and technological development.
E-COMMERCE ON SUPPLY CHAIN
What is E-Commerce
E-commerce involves the use of the Internet, the Web, and mobile apps and browsers running on mobile devices to transact business More formally, digitally enabled commercial transactions between and among organizations and individuals.
Impact of E-commerce on supply chain and the birth of the supply chain 9 2.3 What is E-Commerce supply chain management?
• In order to facilitate order generation, execution, and fulfillment, an inter- organizational business process that links the manufacturer, logistic companies, distributors, suppliers, retailers, and customers together has evolved over the past quarter of a century Customers deal with companies based on their ability to handle and deliver goods in a timely and reliable manner in addition to the quality of the products they receive Three issues are addressed by supply chain management:
➢ Arranging for the coordination of all customer-level order processing activities
• E - commerce has had a significant impact on how businesses operate and has changed the way supply chain management is done E - commerce has influenced supply chain management through a number of ways
E-commerce enables businesses to increase their sales revenue by reaching a broader customer base effortlessly It simplifies the selling process, making transactions faster and more convenient Additionally, by eliminating the need for physical inventory, e-commerce helps reduce operational costs, allowing businesses to offer competitive pricing and boost growth.
E-commerce has significantly transformed the supplier selection process by intensifying competition among suppliers, as businesses now have access to a broader range of large suppliers This increased competition has resulted in lower prices and enhanced product quality, benefiting consumers and businesses alike.
10 finding new suppliers of businesses becomes quicker and easier This allows businesses to spend less time researching new suppliers
2.3 What is E-Commerce supply chain management?
E-Commerce supply chain management involves coordinating the flow of information, resources, and funds across various entities and stages, from raw material procurement to the delivery of finished products to customers Efficient management of this process ensures seamless operations, reduces costs, and enhances customer satisfaction Optimizing supply chain logistics in e-commerce is vital for timely delivery and maintaining a competitive edge in the digital marketplace.
• There are five phases in e-commerce supply chain management:
➢ Planning: during the planning phase, you collect data about your supply chain to determine the amount of inventory needed to meet the needs of your customers and the market
➢ Sourcing: during this period, you look for suppliers, suppliers and manufacturers that can provide the amount of inventory needed to meet the needs of customers
➢ Fabrication: this phase involves the conversion of raw materials into finished products then inspection, packaging and storage for delivery to the final customer
➢ Delivery: this stage is also called logistics The process of transferring goods from seller to recipient through various means of transport
➢ Return goods handling: this stage involves handling returned goods from customers and returning defective or expired products from warehouses to suppliers
The overall supply chain efficiency depends on each phase of the supply chain management system, as any change or issue in one stage can significantly impact the entire chain's performance.
E-LOGISTICS
The birth of e-logistics
• With this shift, before deciding to buy online, consumers pay much attention to product quality, information security, customer care, delivery, payment and promotion…
As the e-commerce industry continues to expand, managing the logistics of delivering orders to customers has become increasingly complex, especially amid the COVID-19 pandemic, which has significantly impacted the entire supply chain Consumers now enjoy seamless online shopping with just one click or touch, opting for digital transactions over in-store visits to adhere to social distancing guidelines With millions of packages shipped nationwide daily, reliable systems are essential to ensure timely deliveries, accurate order fulfillment, and maintaining a smooth flow in the e-commerce logistics network.
What is e-logistics
E-logistics is the process of using information technology for traditional Logistics concepts towards efficient procuring, warehousing, inventory management, supply - demand forecasting, distributions, and other activities involved in delivering a product from the origin to its destination in online business
Role of e-logistics
Logistics plays an important role in the trade chain from seller to buyer with the order fulfillment process, including packaging, shipping, collection and after-sales customer care
Effective warehouse management requires reliable software systems and automated equipment to ensure accurate and flexible stock control These tools support essential activities such as receiving, inspecting, labeling, barcode scanning, and classifying goods, enabling quick and efficient inventory setup Implementing these solutions enhances operational speed and accuracy, ultimately improving overall warehouse efficiency.
Effective order preparation is crucial and heavily dependent on the level of mechanization and automation technologies employed Implementing advanced automation boosts supply productivity, enhances accuracy, and significantly reduces customer waiting times These improvements lead to more efficient order processing, ultimately increasing overall sales efficiency and customer satisfaction.
Efficient order coordination and seamless delivery from the warehouse to customers are vital for B2C retailers, including updating customers with real-time information Retailers with sufficient funds and experience can establish their own delivery teams by investing in proper training and management.
➢ But small businesses often lack this capacity, so they will have to hire forwarding services from third-party logistics companies
B2C retailers utilize various delivery methods when shipping goods, which directly influence the level of logistics services required and the extent of their involvement in electronic transactions The choice of delivery options impacts overall operational efficiency and customer satisfaction in e-commerce.
• Delivery at the seller's warehouse:
➢ The buyer must come to pick up the goods or rent the means of transport to the warehouse of the seller to pay and pick up the goods
➢ However, sellers are not able to provide logistics services that can still be used but it is not convenient for buyers
The seller is responsible for delivering the goods once they are loaded at the buyer's discretion onto the chosen mode of transportation and prepared for unloading at the specified location All transportation expenses and risks associated with delivering the goods to this destination are assumed by the seller, ensuring a clear understanding of shipping responsibilities and cost allocation.
➢ Dropshipping is the model of the cargo board Sellers will not need to import goods, store goods inventory but just care about selling and tracking orders
➢ The management of goods inventory, the transport of goods to the recipient and other order completion activities will be carried out by the supplier
➢ In the form of Dropship, the benefit you get is the difference between the price of the supplier and the actual selling price for the customer
THE IMPACT OF GLOBALIZATION
Globalization on retailer
In the digital age and the Internet of Things, connecting with others has become easier than ever, both locally and globally However, establishing and maintaining meaningful relationships remains a challenge in our interconnected world Globalization has played a significant role in simplifying business-to-customer communication, fostering greater transparency across the entire supply chain.
Globalization has created numerous growth opportunities for businesses by enabling easier communication and expanding market reach Companies can now sell, produce, and offer a wider variety of choices to customers worldwide Additionally, globalization facilitates market expansion and diversification, driving long-term business growth and innovation.
14 the competition more competitive, which has prompted companies to constantly think outside the box
→ It serves as a form of quality assurance to encourage companies to keep raising the bar and pursuing excellence
• Increasing sourcing options: Globalization makes it possible for businesses to increase production by ensuring a diverse selection of workers, raw materials, and goods from previously inaccessible regions of the world
Globalization simplifies reaching new customers worldwide, enabling seamless communication with clients, suppliers, and business owners regardless of location However, expanding into international markets can lead to increased labor costs, which companies should consider when planning global growth strategies.
• Greater data collection challenges: As your supply chain's various components are dispersed across the globe, it becomes more difficult and complex to collect and monitor data
• More legal problems: Cross-border operations entail carrying out business in nations with different legal systems, which can quickly become complicated and expensive
Operating on a global scale increases the risk of external factors impacting the supply chain, making businesses more vulnerable to events such as political uprisings, natural disasters, and economic recessions, which can cause significant disruptions.
As market demand grows with expansion, the increased demand for supply can benefit businesses, but it also reduces the predictability of market trends This decreased predictability is often overlooked and arises primarily from the challenges of data collection As data volume continues to grow daily, analyzing and tracking emerging trends becomes increasingly difficult, making it harder for businesses to anticipate market movements accurately.
With an increasing number of supply channels, the risk of mistakes significantly rises Proper management and organization are essential to prevent losing track of different steps and destinations, ensuring a smooth and efficient supply chain process.
15 added to the supply chain timeline Because supply chain management is more complicated than ever, having a strategic ecosystem is essential Disaster can result from a single small error
Globalization has significantly transformed the world and continues to drive societal progress It has revolutionized the global supply chain and fundamentally changed how businesses operate Many companies, from small startups to large corporations, are adopting global sourcing to access more affordable goods and expand their material options However, while globalization offers cost savings and increased variety, it also introduces complex logistical challenges that businesses must navigate to ensure smooth operations.
Globalization on customer
Globalization has expanded market access, allowing customers to purchase products not available in their own countries This leads to increased product diversity, offering consumers a wider variety of options The rise of e-commerce enables customers to shop online from anywhere—home, office, bus, or train—accessing global products effortlessly Faster delivery of goods and services enhances customer satisfaction Additionally, globalization contributes to the improved quality of products, goods, and services, benefiting consumers worldwide.
Globalization has significantly enhanced consumers' lives by raising living standards and transforming human values and lifestyles It has fostered an expanding consumer culture, leading to increased product diversity and access to higher-quality goods at lower prices Additionally, the free flow of technology across borders has driven innovation and improved overall consumer experiences, making a wider range of products more affordable and accessible worldwide.
➢ Transport raw materials and food from one place to another in the world
→ This has an impact on the ecological cycle, causing stress to the environment
Before globalization, customers used to consume domestic products After globalization takes place, customers can buy all products abroad The amount of
The increased transportation of 16 essential products has led to higher levels of environmental pollution, including smog, exhaust gases, and noise pollution, adversely affecting air quality Globalization has transformed consumer culture, with media such as advertising and product translations influencing local traditions and purchase behaviors However, a key limitation remains: consumers often lack comprehensive information about product quality, pricing, and accessibility, which are delivered through advertising, impacting their ability to make fully informed decisions.
Consumer awareness and protection are increasingly important in today’s globalized world, where strengthened markets and advanced technology enable products to be bought and sold worldwide via the internet Globalization acts as a double-edged sword, offering both advantages and challenges to consumers Recognizing both positive and negative impacts is essential for developing effective protection strategies Striking a balance between the benefits and risks of globalization is crucial for ensuring consumer rights and fostering sustainable economic growth.
Globalization on supplier
• Selecting suppliers capable of providing high quality but most affordable goods and managing relationships with effective suppliers so as not to affect the quality of products and services the company provides
Globalization simplifies communication between business owners, suppliers, and customers, making it easier to access and expand into new markets worldwide This seamless connectivity enables businesses to reach new customers effortlessly across international borders, fostering growth and global presence.
• Putting it in a broader context, this is one of the most intriguing advantages of global supply chain management Because business operations are conducted differently in different parts of the world, a global supply chain broadens the learning opportunities for those who are eager to learn new business processes
It also provides ideas for problem-solving through creative means
Unfavorable events like natural disasters, political unrest, economic instability, supply chain disruptions, and border or port closures significantly impact businesses by delaying customer deliveries and disrupting operations These challenges heighten risks and necessitate robust contingency planning to maintain supply chain resilience and ensure customer satisfaction.
• When a business or company enters a new market, globalization makes it more competitive and calls for the most effective supply chains
As businesses expand globally, they face increased challenges in data collection, often making operational decisions with incomplete information Insufficient data can lead to higher risks of costly errors and poor strategic choices, emphasizing the importance of comprehensive data gathering for informed decision-making in international markets.
Risk management in global supply chain
Global supply chains now face more risk factors compared to traditional localized supply chains These risks encompass supply disruptions, delays, demand and price fluctuations, as well as currency exchange rate volatility, increasing overall operational uncertainty.
Understanding and managing supply chain risks is essential for global supply chain resilience It is crucial to identify relevant risk factors and develop effective mitigation strategies to minimize disruptions As outlined in Table 4.4, supply chain risks and their driving factors should be carefully considered during network design to ensure robustness and adaptability Incorporating risk management into supply chain planning enhances the ability to respond to uncertainties and sustain efficient operations worldwide.
Supply Chain Risks to Be Considered During Network Design
Disruptions • Natural disaster, war, terrorism
Delays • High capacity utilization at supply source
• Poor quality or yield at supply source Systems risk • Information infrastructure breakdown
• System integration or extent of systems being networked
Forecast risk • Inaccurate forecasts due to long lead times, seasonality, product variety, short life cycles, small customer base
• Vertical integration of supply chain
Procurement risk • Exchange rate risk
• Fraction purchased from a single source
Receivables risk • Number of customers
Inventory risk • Rate of product obsolescence
Capacity risk • Cost of capacity
The impact technology on supply chain management
New technologies are revolutionizing supply chain management by enabling real-time tracking and more accurate delivery systems Mobile, wireless, handheld devices are at the forefront of this innovation, significantly improving logistics and transportation efficiency As businesses seek faster and more reliable operations, technological advancements are transforming traditional supply chain processes to meet modern demands.
• With the ever-changing aspect of technology, keeping up with new capabilities and best practices can be difficult for large companies that are deeply invested in old technology - it's a never-ending process end While
19 the transition takes time, leveraging new technologies is key in this competitive industry
The Internet of Things (IoT) refers to the billions of physical objects connected to the internet that collect and exchange data, enabling smarter interactions across various devices Thanks to affordable processors and wireless networks, everything from medical pills to airplane parts can become part of the IoT, adding digital intelligence to enhance functionality This connectivity allows devices to communicate autonomously without human intervention, effectively bridging the physical and digital worlds for innovative applications and improved efficiency.
IoT devices, including smart chips and mobile sensors, play a crucial role in the Internet of Things supply chain by enabling efficient product tracking and shipment authentication through GPS and advanced technologies These devices also monitor storage conditions to enhance quality management across the supply chain As a key benefit for chain management industries, IoT devices improve visibility, security, and overall operational efficiency in supply chains worldwide.
➢ AI is a broad branch of computer science concerned with building intelligent machines capable of performing tasks that normally require human intelligence
Applying AI to complex operational data offers numerous benefits, including enhanced decision-making and reduced cycle times It enables big data predictive analytics, leading to improved quality and increased yield productivity AI also boosts chain resilience and system availability, allowing companies to continuously adjust and optimize their processes based on real-time insights into system performance.
Enhanced shipment tracking systems enable shippers to quickly verify cargo location, monitor delivery times, and identify potential delays, ensuring more accurate supply chain management While many still rely on calling drivers for tracking updates, adopting automated email notifications and tracking applications offers a more efficient and reliable solution Shippers should consider implementing these advanced tracking tools to improve visibility and streamline their delivery processes.
20 the service providers they work with to have some sort of automated tracking alert system or Web-based online shipment tracking portal
Logistics and supply chain management are significantly transformed by advancements in information technology, which has the power to revolutionize business operations Leveraging these technological tools enhances efficiency, streamlines processes, and simplifies complex logistics tasks Embracing IT in logistics helps businesses achieve quicker, more accurate decision-making, ultimately making operations smoother and more effective.
Information technology plays a crucial role in logistics and supply chain management, providing companies with a significant competitive advantage through the adoption of the latest technologies It serves as a foundation for creating innovative goods and services, while also reducing operational costs and boosting process efficiency As these technologies become more widely implemented, they offer immediate improvements to supply chain performance, and their adoption is expected to continue expanding in the logistics sector.
CASESTUDY: AMAZON'S GLOBAL SUPPLY CHAIN
A brief overview of Amazon
Amazon is the world's largest retailer by 2022, ranking sixth on Forbes' list of major global corporations Amazon's headquarter is located in Seattle, Washington
There are three main Income sources of Amazon Company:
• The retail business on website amazon.com: “Amazon sells more than 12 million products, not including books, media, wine and services”
• Amazon Web Services segment offers a comprehensive cloud computing services for individuals, corporations and government Users are charged on a subscription basis depending on the usage
• Amazon Prime: is an upgraded account for VIP customers shopping on Amazon
Figure 2: Ranking of Amazon at Forbes’s list in 2022
Amazon's formation and achievements in its development
Amazon was founded by Jeff Bezos in 1995 and rapidly gained popularity during the Dotcom era This period was characterized by exponential growth in internet access and the increasing importance of computers in daily life.
This is an objective reason that allows Amazon to quickly expand its supply chain across all 50 US states and 45 other countries in the first few months
Amazon is one of the few companies that survived the collapse of the Dotcom bubble Amazon development milestones such as:
In 1997, Amazon was listed on stock exchange
In 1998, Amazon purchased IMDb for approximately $55 million, making it the company's first acquisition After that, Amazon started adding more new product categories besides books
In 2005, Amazon Prime was born, which contribute to help users double shopping on the website This is Amazon's first foray
In 2009, Amazon made its biggest break in creating its own product lines with
In 2014, Fire Phone was born, but it is one of the most notable "faulty" products of Amazon
In 2015, Amazon is king stock with impressive 67% growth
In 2017, Amazon made its biggest purchase ever: buying Whole Foods for $13.7 billion
In 2018, Capize the field of Amazon times the first Cột vượt mốc 1.000 tỷ USD
In 2022, Amazon is ranking sixth on Forbes' list of major global corporations.
Globalization also has presented the Amazon supply chain challenges22 5.4 The global supply chain is one of the keys to Amazon's success
Customer, product, and partner data files require Amazon to strategically adopt the right data management technology
• The large number of warehouses in the US and the world makes it difficult to control risks and errors
Businesses must face objective risks that significantly impact supply chains, including natural disasters, port and border closures, and shifts in the geopolitical landscape Recent events like the COVID-19 pandemic have further exposed vulnerabilities, highlighting the importance of resilience and risk management in global supply networks.
• Requires Amazon to have the right supply chain strategies to maximize profits as well as increase customer value, limiting unwanted incidents
5.4 The global supply chain is one of the keys to Amazon's success
“Amazon offers two fulfillment options for sellers on the amazon.com website - FBA and FBM.” - Follow teikametrics.com
Fulfillment by Amazon (FBA) allows third-party sellers to send bulk shipments of their products to Amazon fulfillment centers Amazon then manages all aspects of order processing, including customer service, packaging, and delivery to customers This service enables sellers to streamline their logistics and reach Amazon's vast customer base efficiently.
Amazon's FBA Onsite program allows third-party sellers to manage their own inventory, while Amazon takes responsibility for receiving orders from these warehouses and delivering products to customers efficiently.
Fulfillment by Merchant (FBM) allows third-party sellers to list their products on Amazon while managing all aspects of the order process themselves This includes handling storage, logistics, customer service, and product delivery fulfillment, giving sellers full control over their sales operations.
“Amazon currently has 110 active fulfillment centers in the US and 185 centers globally.” - Following fba.help
Figure 5: FBA warehouse diagram in the US (cre: fbasalestax.com)
Amazon has 6 types of Fulfillment Centers, like:
• Sortable fulfillment center: has an area of approx 800,000 square feet This is the place to select, pack and deliver orders of books, toys and household items to customers
A non-sortable fulfillment center, spanning between 600,000 and 1 million square feet, specializes in handling large and bulky orders Amazon employees there are responsible for selecting, packing, and delivering items such as outdoor tables, chairs, outdoor equipment, and carpets This facility is essential for managing oversized products that require specialized processing and shipping.
• Sortation centers: Associates sort customer orders according to the final destination and load them onto trucks for faster delivery This supports amazon in daily delivery, even Sunday
Amazon’s receive centers play a crucial role in customer fulfillment by handling large inventory shipments of fast-selling products and distributing them efficiently across the fulfillment network Spanning approximately 600,000 square feet, these centers ensure smooth inventory intake and optimal allocation to support timely delivery and inventory management.
• Specialty: handle the specific category of items, or assist in serving on peak occasions of the year such as holidays,
• Delivery stations: In these buildings, customer orders are prepared for last-mile delivery to customers
Amazon's warehouse system ensures a very high relationship from manufacturers, distribution systems to customers
Orders will leave Amazon's warehouses and reach consumers using shipping methods such as:
Amazon carriers are capable of transporting over 2,000 packages simultaneously from fulfillment centers to sorting facilities At the sorting center, packages are organized for delivery to various shipping vehicles, including Amazon trucks and planes, based on destination and delivery speed Intermediate logistics partners like UPS, FedEx, and the U.S Postal Service play a crucial role in ensuring efficient last-mile delivery This streamlined logistics network enables fast and reliable order fulfillment nationwide.
The use of trucks increases the flexibility of transport Since there are not many cumbersome procedures, it is often applied to short transit lines or intermediate vehicles
Amazon offers 2-day shipping exclusively for Prime members, utilizing a dedicated fleet of planes operated from over 20 airports across the United States This extensive air network ensures fast and reliable delivery, guaranteeing that goods arrive promptly within a short time frame.
Prime Air is a demonstration that Amazon is a pioneer in putting customer value at the forefront
Figure 8: Prime Air cargo plane image
Due to Amazon's massive order volume, partnering with external shipping units is essential for efficient logistics These partners hire and develop dedicated shipping teams, while Amazon provides training, tools, and ongoing support to ensure seamless operations Additionally, Amazon leverages independent shipping contractors through Amazon Flex, a strategic move that allows the company to benefit from professional delivery services with minimal investment and increased flexibility This collaboration optimizes delivery management and enhances overall supply chain efficiency.
• Interesting vehicles from the future
Amazon is continuously innovating delivery methods to ensure faster order fulfillment, including the use of advanced autonomous vehicles Prime members may have already experienced compact, attractive self-driving bins delivering packages directly to their homes Recently, Amazon has begun testing versatile drones capable of flying directly to customers’ doors, showcasing their commitment to enhancing the customer experience These innovative delivery solutions not only generate media interest but also demonstrate Amazon’s leadership in integrating science and technology into everyday life, positioning the company as a pioneer in logistics innovation across new markets.
Figure 10: Picture of Prime Air
In addition, Amazon also cooperates with express delivery partners in the countries where Amazon operates
Figure 11: Courier Partners for Shipping Amazon Orders in India
Figure 12: Courier Partners for Shipping Amazon Orders in India (next)
Advantages and disadvantages of Amazon Global Supply Chain
• Amazon offers their customers a wide choice of shipping methods including: Free shipping, 2-day Prime shipping, and even a Prime Now option, get products in two hours
• Helping retailers also take advantage of existing delivery routes via FedEx and UPS
• Helping increase customer satisfaction through fast delivery and fruitfulness
• Amazon relies heavily on courier companies like FedEx and UPS or shipping companies in the countries where it operates
• Regarding the "bullwhip" aspect This means that Amazon can better integrate its SCM and move from a supplier partnership model to a orchestration mode
5.6 Impact of Covid-19 on Amazon's supply chain
Amazon faces a paradox: skyrocketing demand for household essentials and medical supplies like hand sanitizer and face masks increases revenue but strains its supply chain While Amazon is prioritizing logistics for these essentials, this shift hampers its ability to meet ongoing demand for non-essential items such as toys, electronics, and sports equipment This logistical challenge threatens to disrupt Amazon's overall system amid the surge in essential product demand.
Amazon's "just in time" delivery model ensures that fulfillment centers store minimal stock, enabling rapid replenishment and efficient inventory management A key aspect of Amazon's brand promise is fast delivery, exemplified by Amazon Fresh's same-day grocery and produce delivery Amazon Prime attracts subscribers with the benefit of free two-day shipping, while Amazon Dash enhances this experience by guaranteeing timely delivery of essential household supplies before they run out.
Disrupted supply chains, increased panic buying, and quarantine measures in certain cities are hindering Amazon's ability to fulfill its delivery promises As a result, some Prime orders are expected to take up to a month to arrive, significantly longer than the usual two-day delivery window.
Amazon faces challenges in controlling COVID-19 infections across its widespread warehouses located throughout the US and globally, making effective management difficult Despite a rise in positive tests among warehouse workers, many facilities continued operating with only affected employees asked to self-isolate, risking further virus spread In some cases, entire fulfillment centers had to shut down for deep cleaning, leading to significant disruptions in Amazon’s order fulfillment and responsiveness during critical times.
The potential risk of a deadly infection is discouraging Amazon workers, even those desperate for employment, highlighting the urgent need for safer working conditions The outbreak has also intensified political scrutiny, pressuring Amazon to enhance its employee relations and prioritize worker safety and well-being.
In Q1, the company recorded $600 million in COVID-19 related costs, primarily stemming from increased personnel expenses including higher compensation and employee relief funds, as well as costs associated with decreased productivity Additionally, operational expenses such as personal protective equipment and enhanced cleaning services contributed to this financial impact.
Figure 14: amazon's worldwide shipping costs in million of dollars
During the COVID-19 pandemic, shoppers faced store closures and empty shelves, turning to Amazon as their first choice for essential products such as hand sanitizer, face masks, and disinfectants to stay protected They stocked up on household essentials and groceries initially, and later ordered office supplies and fitness gear to adapt to staying indoors This surge in online orders led to record-breaking sales for Amazon in the second quarter In response, Amazon invested billions in coronavirus-related initiatives, including safety gear for workers and internal testing programs to ensure safety and continuity.
Figure 15: Revenue report for the third quarter of 2020
Figure 16: Revenue report for the third quarter of 2021
=> The world's leading e-commerce group said revenue has increased to 122 billion
While the U.S navigated widespread unemployment and economic turmoil, Amazon kept hiring The company brought on more than 175,000 new warehouse and delivery
Between March and mid-April, Amazon hired 36,400 workers to ensure timely fulfillment of customer orders In the three months ending June 30, the company's total workforce increased significantly, reaching 876,800 employees This represents a 34% year-over-year growth, reflecting Amazon's rapid expansion and increased operational capacity.
5.7 Amazon's solution to solve difficulties by covid-19
Managing logistics and operations, including inventory storage, distribution, and order fulfillment, presents significant complexity and costs for many businesses These challenges have intensified in recent years due to constrained supply chains leading to global inventory backups and fulfillment issues A recent survey of U.S Amazon sellers identified high storage prices, complicated fee structures, and limited storage capacity as the top pain points in upstream warehousing and distribution operations.
AWD offers a simple pay-as-you-go service that eliminates the time-consuming and cumbersome process of transferring inventory to Amazon fulfillment centers By providing supply chain as a service, AWD addresses inventory management challenges and enhances operational efficiency for sellers This innovative solution streamlines inventory logistics, allowing sellers to focus on business growth while benefiting from a reliable and efficient supply chain.
Enrolling in Amazon's fulfillment services is simple, allowing sellers to effortlessly send their inventory to Amazon Distribution Centers with just one click This seamless integration helps reduce storage costs significantly by eliminating complex pricing structures and long-term contracts typically found in the industry Sellers can synchronize their upstream inventory storage operations with the Amazon Fulfillment Network, ensuring optimal stock levels are maintained in the right locations at the right times to meet customer demand efficiently.
• Amazon open 100,000 full- and part-time positions in its fulfillment centers and delivery network
E-commerce has boomed as consumers worldwide practice social distancing and self- quarantining Amazon faced stock-outs on some household staple items as consumers went into panic-buying mode They are working around the clock to bring on additional capacity to deliver all of customer’s orders Amazon announced its plans to significantly ramp up fulfillment and delivery hiring to execute online orders The
Amazon is hiring 37 additional warehouse workers to enhance stocking and shipping operations for essential goods These workers will focus on quickly receiving, restocking, and shipping household staples, medical supplies, and other critical products This temporary prioritization aims to improve delivery times for crucial items at Amazon fulfillment centers, ensuring customers receive their essential orders efficiently.
• Vaccination organization for Amazon employees
Amazon's ongoing commitment to employee health and safety during the COVID-19 pandemic remains a top priority In collaboration with government and public health officials, Amazon has rapidly expanded its on-site COVID-19 vaccination program to protect frontline employees across the United States.
In late March 2020, Amazon launched on-site COVID-19 vaccination events at its fulfillment centers, expanding access to frontline employees These vaccination initiatives, conducted by licensed healthcare providers, have now been implemented at over 250 locations across the U.S and Canada As a result, more than half a million Amazon employees, contractors, and partners have gained access to critical COVID-19 vaccines, demonstrating the company's commitment to workplace safety and public health during the pandemic.
In some locations, they've partnered with local authorities to open their vaccination program to employees' household members to ensure employees are safe from
COVID-19 in the workplace and at home