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The basic scope of this paper is to analyze the importance and need for operation and quality management in a company and to take a company the operation and quality management of which shall be examined with the help of credible sources. The chosen company for this composition is Amazon; Amazon's operation and quality management techniques will be analyzed to find out if there is an issue that the company might be facing and how can those issues be resolved with the help of proper academic means.
Operation management is essential for the smooth functioning of any organization as it helps the company to operate in a proper manner (Abbas, 2020). The management of a company's operating system is necessary as it helps in smoothing out the process through well-crafted strategic planning. If operation management takes care of the internal operating system of an organization, quality management helps in keeping the relationship with the customers and clients to be in a healthy shape (A?imovi?, Mijuškovi? and Miloševi?, 2020). Quality management is a strategic way of trying to please the customers and clients of a business by keeping the quality of the products and services in check.
The company, as aforementioned, which has been chosen for this composition is Amazon. Amazon is an American multinational company which was founded in 1994 by Jeff Bezos. Amazon is an organization that deals in multiple facets of society, from e-commerce to cloud computing and artificial intelligence. Although there are several areas in which Amazon functions, the primary reason it is famous is its e-commerce service and the digital streaming platforming named amazon.com and prime videos, respectively (Bastas and Liyanage, 2018). Amazon is a huge organization; therefore, the importance of operation and quality management for it increases manifolds; for the smooth internal and external functioning of a company as vast and diverse as Amazon, management and strategic planning is of the utmost importance.
Operational and Quality Management
Operational management
In the present economy and market, the importance of operational management has exponentially increased as the current market structure is heavily influenced by globalization; globalization has increased a sense of competition among the companies as there has been an increase in the number of organizations functioning in a particular market (Khan, Cao and Luo, 2020). The changing market structures, product's shorter life cycle and an overwhelmingly increasing demand among the customers have made it necessary for companies and big organizations to adopt operational management techniques in order to function in an efficient manner. Operational management influences every product and service that the organization is dealing with as it helps in managing the entire operational procedure of a system. The business environment of today has been significantly affected by the several changes within the structure of the market, and that change within the structure has made it necessary for companies to adopt several structural changes in order to stay firmly rooted in the market and against the increasing number of fierce competitors. Operational management helps an organization by adopting such structural change by bringing about a sense of flexibility within the organization and its aspects of innovation, finance, time and quality. Operations management is a necessary facet within an organization, especially in the current competitive economic climate of society.
Fig: Operation management
Quality management
Quality management is the act of managing and overlooking all the aspects within an organization which is related to the functional quality of the concerned organization; it helps maintain the excellence in quality which is required and necessary for a company to maintain a healthy relationship with the customer and to help in satisfying the customer-base by meeting their desired requirements (Lai et al., 2020). Total quality management is another name through which quality management is known as. Long term goals are tried to be achieved by adopting initiatives of quick and short terms with the help of quality management. The core and basic philosophy behind the importance of quality management within an organization is that it helps the company achieve success through championing the cause of loyalty and satisfaction towards the customers and clients.
Fig: Principles of quality management
Quality management requires the involvement of every member of an organization, including the employees, leaders and stakeholders, so as to improve the products and services offered by the company by improving the processes through which the products and services are created, developed and introduced.
Amazon: The background
Amazon was founded in a garage in 1994, and since then, Jeff Bezos has taken the company to greater heights. Amazon has earned a tremendous reputation for being a giant in the retail market through technological innovation and mass-scale production. From e-commerce to a streaming platform, Amazon also deals in technology and artificial intelligence; for an organization as diverse as Amazon, operation and quality management are important facets for the smooth functioning of the company. Amazon's great success depends upon the great efficiency that it has achieved with the help of operational management; operational management directly determines the performance and productivity of Amazon as the basic function of operational management is to smoothen up the international operational processes and system which is necessary for the proper working of the organization. Amazon has achieved optimal efficiency in its services through technologically supported productivity (Sadq, Sabir and Saeed, 2018). Operational management helps in bringing about a change within the structure of an organization with respect to the changing scenario of the market. In this competitive economy, companies feel the constant need to bring about changes, improvisations and innovations within their operational process in order to work properly in the face of constant competition and changing nature and structure of the market. Adopting operational management and quality management processes in the organization would help in bringing about a sense of development within the company, and it would be beneficial for its advancement and success in the longer run.
Fig: Operations technology of Amazon
It is through effective operational and quality management that Amazon has been able to maintain a huge lead in the retail industry; to be able to maintain a smooth functioning organization and to keep the quality of the products and services good requires the adoption of the operation and quality management has helped significantly.
Amazon is an American multinational company which was founded by Jeff Bezos in 1994, and the company has rapidly grown ever since, reaching the heights of development, fame and importance in the global market. Despite its great success and its optimal usage of its resources to produce a great variety of products and services, keeping in mind the operational and quality management processes, there are several issues and challenges within the organization that Amazon needs to deal with in order to stay firm upon the market by properly meeting the requirements of its clients and customers (Tien, 2022).
Amazon has a complex organizational structure which makes it difficult for the new sellers and individuals who try to connect with the company in order to function in collaboration for the success of themselves and Amazon. The detailed shipping options, logistics related to FBA, re-negotiating fees, duplicate listings, MAP issues. are complex issues for the non-specialists to learn about and understand; sellers who connect with Amazon in order to acquire the partnership of its e-commerce website, find it difficult to understand the entire process. Success on Amazon requires an experienced set of individuals or teams who can properly assess the rules and regulations which they have to understand and abide by in order to collaborate with the organization.
Amazon sometimes suffers from poor supply chain management. It happens due to two main reasons: mistakes of the suppliers and inefficiencies within the process. Amazon has collaborated with many suppliers, and if there is a problem in a product or service due to the mismanagement of the supplier, then it becomes a disaster as many customers are not satisfied with the service. Also, if a supply chain is functional, it does not mean that it is working in its optimal condition, and there can be several faults and defects within the system which has to be carefully looked through and solved in order to avoid any mistake or mishap which can cause dissatisfaction among the customers. Dissatisfaction among the customers in this competitive and easily communicative market is a nightmare, and customers can easily switch their business due to the great number of alternatives present within the society.
There is great competition, and in this competitive market, running out of stocks or an inefficiently functioning supply system or production unit can prove lethal for the success of the organization. Amazon does feel the pressure of inadequate supply and running out of stocks; for a big organization like Amazon, running out of stock is simply due to inefficiency within the production or supply unit because Amazon has all the infrastructure which is required for a smooth flow of products and an adequate supply; operational and quality management processes can help overcome and avoid these problems by helping the organization to function in an optimum level so as to efficiently meet the requirements and satisfaction of the customers and clients of the organization.
Application of the Theory of Total Quality Management to the Operational Process of Amazon
As per the theory of Total Quality Management, an organization is supposed to utilize a TQM system to ensure continuous improvement of the quality of the processes and products of the business. As per the views of Mescheryakov et al. (2020), in terms of making continuous improvements within the organizational process, the employees are supposed to perform in an excellent and efficient way. Based on this concept, the initiatives for continuous improvement in Amazon are considered to seek out the areas that require improvement actively.
Quality Management Challenges of Amazon
In the last few years, the utility of Amazon reached a hike. The popularity of Amazon is visible frequently. People around the world benefit from its growth in an eCommerce business. Almost 40 to 46 percent of all ecommerce sales are captured by Amazon (Kumar et al., 2020). In spite of having a huge growth in e-commerce, Amazon has to go through many challenges. These challenges came after the growth—challenges like complications, competition and probable profit rate. The sellers have to face many obstacles to grow the selling point. Besides, they have to be cautious about the shipping details, the info, the product info, cancellation, delivery locations. Sometimes they can find the exact location of the delivery. The shipping details of the product are not clearly given. As the profit rate is uncertain, it is not easy for a company to maintain the same profit rate throughout all the years. Besides, Amazon tries to reach the goals of the public's requirements.
Fig: Transformation procedure at Amazon
Sometimes they have to create offers that do not benefit the sellers always. The process of purchasing a particular product from the seller is not always profitable to the sellers (Dua et al., 2020). Competition is something that holds back the enthusiasm of a growing company. This makes it harder for a company to grow fast. Besides, other companies are making huge promotions with ad headlines. So the investment in promotion is put into another competition. Competition between companies and the absence of third-party promotion is not done by the company. The seller should have the proper deal with the buyer. The profit can not be maintained the same each time. So it has to be taken care of by other people. Competition from other companies will remain. The sellers or the delivery authorities
Possible Solution to the Challenges
One of the biggest challenges for Amazon is considered to be its failure for nit capitalize on its actual potential, which has made the operational process of this company a little bit complex. The performance potential of Amazon can be compared and measured by relocating its resources through other channels (Li, 2020). It would help in analyzing and forecasting its potentiality with the products and services of Amazon.
On the other hand, a third party can be involved in reporting and analyzing the business data of Amazon. It is considered to help the business to track its margin across different channels and allow better decision-making. This can also assist grasp Amazon's sales projections and price suggestions depending on the categories of research for their services and goods.
Thereafter, the competitive environment of Amazon can be managed by evaluating the product mix as well as improving the advertising strategy. As per the views of Ogbuke et al. (2022), and improved advertising strategy is considered to attract new customers as well as promote brand value. Thus the company is considered to achieve a sustainable competitive advantage over its rivals.
Conclusion
The primary goal of this article is to investigate the significance and necessity for operation as well as quality management in a business, as well as to select a corporation whose operation and quality control will be examined using reputable sources. The chosen firm for this work is Amazon; the operation as well as quality management systems of Amazon have been examined to see if there are any concerns that the company may be facing and how certain issues may be remedied using correct academic approaches. Despite its rapid expansion in e-commerce, Amazon faces several hurdles. Amazon has been observed to have major operational challenges in managing its complex operational system, growing rival environment in the business market as well as tracking its profitability. By transferring Amazon's resources through various routes, its performance potential may be contrasted and analyzed. A third party, on the other hand, may be engaged in collecting and analyzing Amazon's business data. Following that, Amazon's competitive climate may be handled by assessing the product mix and adjusting its advertising strategy.
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