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Running Head: LOGISTICS 1
Running Head: LOGISTICS 7
Logistics and Supply Chain Operations
Stanley Thompson Jr.
DB 8035
24 May 2020
INTRODUCTION
Amazon is one of the fastest growing online retailer
company in the United States of America that has been able to
overhaul its business structure by using innovative strategies in
supply chain management. Amazon has left most of its
competitors have a hard time trying to catch up. The firm has
made huge investments in the management of its inventory to
include recent forms of technology to beat its competition. The
firm has optimized every link in its supply chain to ensure its
customers are satisfied and well attended to (Leblanc, 2019).
This paper hence seeks to discuss Amazons supply chain
operation factors such as; transport and security, procurement
and inventory management, technology and information
management, and articulate some of the global risk factors
affecting the firm. Comment by TJS: Paragraphs need to be
left justified Comment by TJS: Great point here. Amazon is
dominating the industry Comment by TJS: Anthropomorphisms
should not be utilized. An anthropomorphism is the attribution
of human characteristics or behavior to a good, animal, or
object.
TRANSPORTATION AND SECURITY
Transportation cost structures, modes, and distribution centers,
inventory control systems, and inventory costs reduction
strategies
Amazon initially launched a two-day delivery program for
its customers to ensure that its customers had fast delivery of
products but soon other competitors started catching on.
Amazon hence had to make another adjustment in its freight
services and now offers a two-hour delivery service to Amazon
Prime customers. For product freight, Amazon has equally
sub-contracted firms such as the United Parcel Service to
transport its products to its customers. Amazon has been relying
on third-party couriers to make their deliveries as they have a
better-established delivery route and path that they can leverage
for efficient delivery services (Leblanc, 2019). Comment by
TJS: Yes. They set a new industry standard
However, due to the consideration of numerous factors involved
in using third-party carriers for deliveries, Amazon has
developed its privately-owned freight service. Amazon hence
uses its privately-owned vehicles to carry products to its clients
specifically for same-day deliveries. In recent times, Amazon
has been developing cargo freight service in certain specific
areas where the firm uses drones to carry items straight to their
clients who are within a 10-mile radius from their warehouses.
This has cut product deliveries to half an hour or less. Amazon
is progressively incorporating newer technologies in its supply
chain that systems can hence run without human supervision.
This strategy has been articulated to be efficient so far as there
are has been reduced inventory management costs over the last
few years since the acquisition of Kiva Systems (Leblanc,
2019). Comment by TJS: Which give them a greater level of
control Comment by TJS: Which will improve performance
even more
Relationships between freight rates and consignment weight
Amazon offers freight services for all products irrespective
of their size. Customers hence have a wide area of flexibility in
as far as product freight and its weight are concerned. It has
however been articulated that small packages tend to make most
courier services incur huge freight costs as they charge as per
their weight. Upon making an order on the Amazon website, the
firm has developed a standard shipping rate upon which the
customer is charged. The firm charges a standard four dollars
shipping fee and an additional half a dollar for every pound of
weight that the product weighs. There are however other factors
that come into play in calculation of the shipping fee such as
how fast the client expects the item (Amazon, (n.d.)).
Issues that can impact the efficiency of transport
Amazon prefers to outsource delivery services of their sold
products to outside delivery couriers. Amazon however, does
own several vehicles that they also use but their main use is
deliveries between warehouses. Amazon's strategy is to leverage
other courier services to deliver its products as the firm lacks a
well-defined delivery network as opposed to firms such as the
United Parcel Service and FedEx. Outsourcing for delivery
service has a direct influence on the cost incurred. Amazon had
found it cheaper contracting other firms for their deliveries and
have even further greatly encouraged some of their employees
to start up small cargo delivery services (Onstein, Tavasszy, &
Van Damme, 2019). Comment by TJS: This is an important
point to understand
Similarly, still on costs and efficiency of warehousing
operations, Amazon has greatly found favor in incorporating
more recent innovations in technology. More than half of every
aspect in each of the firm’s warehouse has been upgraded to
include a complex and automated inventory system. Amazon’s
warehouses are largely run by robots that have been equipped
with the ability to go about various activities within the
warehouse without any human supervision as previously
mentioned. Through the automation of the firm’s warehouses,
Amazon has been able to seamlessly achieve efficient ways of
delivering to its clients and influence the rate of satisfaction in
their clients (Onstein, Tavasszy, & Van Damme, 2019).
Comment by TJS: Passive voice needs to be removed. In
a sentence using active voice, the subject of the sentence needs
to perform the action expressed in the verb. Comment by TJS:
Exactly. Great point
Alternatively, geographical location is also a factor that
influences efficiency in transportation. Amazon’s warehouses
have been strategically positioned in numerous locations around
the globe. Their location ensures there is easy accessibility to a
well-defined road network for purposes of deliveries. With most
of the firm’s deliveries being handled by road, this greatly
favors the effective delivery of products. For clients within a
ten-mile radius, deliveries are often done within half an hour
placing the order with the help of cargo drones
(Onstein, Tavasszy, & Van Damme, 2019). Comment by TJS:
Passive voice needs to be removed. In a sentence using active
voice, the subject of the sentence needs to perform the action
expressed in the verb.
Impact of relevant security initiatives, logistics and
transportation risks, and transport security technical systems
Most if not all of Amazon’s customers expect that
deliveries of their products can be handled in a time-sensitive
manner. Therefore, this means that the firm ought to find ways
to guarantee timely product deliveries. For Amazon, this would
mean that to ensure that there are timely deliveries, there is a
need to take up newer technologies and find other measures
such as contract outside delivery services. Similarly, there
would also be a need to take up newer and innovative
technologies such as the use of drones for air freight (PwC,
(n.d.)). Comment by TJS: Yes. This is key to their success
Most of the firm’s warehousing operations are largely
handled by unmanned robots. This move to automate has proved
to be of great help to the firm. Orders are seamlessly being
processed as the warehouses have a complex inventory system
that can run without any human presence. This cuts the time
taken in processing and delivery of orders. Warehousing
activities can hence run on a 24-hour basis with orders being
processed on a real-time basis and efficiently being delivered to
meet the client’s expectation hence influencing the satisfaction
levels in customers (PwC, (n.d.)). Comment by TJS: Passive
voice needs to be removed. In a sentence using active voice,
the subject of the sentence needs to perform the action
expressed in the verb. Comment by TJS: Passive voice needs
to be removed. In a sentence using active voice, the subject of
the sentence needs to perform the action expressed in the verb.
Numerous firms offer stiff competition to Amazon in as
much as it is articulated to be one of the world’s largest
retailing firms. As a way to ensure that the firm keeps ahead of
its competition, Amazon needs to find ways to ensure it offers
satisfactory service and goods to their clients. Amazon has then
opted to manufacture as well as form partnerships with some
small retailing stores that supply to the firm most of the ordered
items. Amazon has hence redefined collaboration in business
(PwC, (n.d.)).
PROCUREMENT AND INVENTORY MANAGEMENT
Sourcing and procurement strategies
Most of Amazon’s supply chain depends heavily on
outsourced measures. Vendors can ship their products to
Amazon’s warehouse locations where they are stored
anticipating a client to make an order upon which they can
hence be shipped to a specified location. Amazon’s sourcing
and procurement strategies hence mandates that the firm stores
most of the frequently bought products while products that are
not frequently bought are not stored at the firm’s warehouse.
This hence greatly facilitates same-day deliveries to clients
which are mainly handled by the firm’s own logistics means.
Depending on outsourced logistics could greatly compromise
same-day deliveries due to delayed shipments (Leblanc, 2019).
Comment by TJS: Correct. This is something that has to
be monitored
Inventory control systems used by Amazon
Amazon as the leading online retailer in the U.S has been
articulated to greatly rely on innovative technologies. Amazon
warehouses are largely automated as a complex inventory
management system has been incorporated to run the firm’s
facilities. With most operations being automated, robots are
responsible for handling products within the warehouse without
any human supervision. Amazon boasts of a huge customer
following and to ensure the firm delivers its services to its large
clientele, Amazon has a sophisticated information technology
that can concurrently run its extensive network of warehouses.
With the multi-tier inventory management and well-defined
logistics plan, it can beat its competition in the market
(Leblanc, 2019). Comment by TJS: Passive voice needs to be
removed. In a sentence using active voice, the subject of the
sentence needs to perform the action expressed in the verb.
Comment by TJS: Passive voice needs to be removed. In
a sentence using active voice, the subject of the sentence needs
to perform the action expressed in the verb. Comment by TJS:
Passive voice needs to be removed. In a sentence using active
voice, the subject of the sentence needs to perform the action
expressed in the verb.
Inventory cost reduction strategies used by Amazon
Amazon, as a way to hit back on its competitors, the firm has
incorporated various strategies to out-do its competition. Most
of the logistics operations are mainly done by third-party
carriers. This reduced the pressure off the firm’s back in trying
to develop delivery routes yet some firms can be leveraged upon
to handle shipment on behalf of the firm. Similarly, amazon
outsources its inventory. Most of the items in Amazon’s
warehouses are obtained from third-party sellers whose goods
are stocked based on their demand in the market. With the help
of information technology systems, the firm can forecast the
projected inventory and stock their warehouses cutting on
delivery times (Leblanc, 2019). Comment by TJS: Passive
voice needs to be removed. In a sentence using active voice,
the subject of the sentence needs to perform the action
expressed in the verb.
TECHNOLOGY AND INFORMATION MANAGEMENT
Logistics automation and logistic systems costs
In the year 2012, Amazon acquired Kiva Systems which is a
company that mainly dealt with the development of robots. Kiva
Systems late became Amazon Robotics which now developed
robots that picked and packed items in Amazon’s warehouses
with barely any human supervision. Warehouse operations
became automated hence time was cut in processing orders
before deliveries. In recent times, Amazon has been developing
drones to deliver goods to their customers through a drone-
based delivery system dubbed Amazon Prime Air that operates
within a radius of 10 miles from any Amazon center and for
products below five pounds (Leblanc, 2019).
Data capture methods used
With Amazon’s great involvement in using newer technologies
in its business operations, the firm has been articulated to use
big data methodologies in understanding its clientele. Amazon
hence uses big data to gather information of their customers as
they browse through the firm’s website. This way, the firm can
develop a recommendation list that is specific to their customer
based on their previous searches. This innovative strategy tends
to streamline the convincing power urging the customer to
purchase whatever they can see on their product feed. Big data
is hence more collaborative filtering which gathers data of who
their customer is based on their searches and develops a profile
of each customer (Marr, (n.d.)). Comment by TJS: Passive
voice needs to be removed. In a sentence using active voice,
the subject of the sentence needs to perform the action
expressed in the verb. Comment by TJS: Good discussion
here
Data flows in the supply chain
It has been articulated that Amazon’s success comes from its
effective supply chain management. Amazon’s supply chain is
simple as it starts with an order being placed by a customer
which sends an alert to the warehouse indicating the order
details of the items ordered. With the complexity of the
inventory system in the warehouse, by automation a robot can
pick and place an item ordered and the item can be processed
ready for shipping. The item is cross-referenced by the order
details and sorted automatically then packaged for delivery. The
item can then be delivered based on the details of the
customer’s preference in the shipping method (Ovenden, 2018).
Comment by TJS: Passive voice needs to be removed. In
a sentence using active voice, the subject of the sentence needs
to perform the action expressed in the verb. Comment by TJS:
Passive voice needs to be removed. In a sentence using active
voice, the subject of the sentence needs to perform the action
expressed in the verb. Comment by TJS: Passive voice needs
to be removed. In a sentence using active voice, the subject of
the sentence needs to perform the action expressed in the verb.
GLOBAL RISK FACTORS
The effectiveness of Amazon’s approach to GSCM
Amazon has been ranked as one of the largest and fastest-
growing online retailer firm in the United States of America.
The firm boasts of a large customer following who has built a
close preference and relationship due to the effectiveness of the
firm’s services. Based on statistics, Amazon’s strategies in
supply chain management have been articulated to be
effectively working. Amazon has been able to significantly cut
down its delivery times over a rather short time. With the
inclusion of innovative technologies in the firm’s inventory
control and logistics, the firm has significantly reduced costs
incurred in logistics and procure of its inventory. This has only
enabled the firm to seamlessly serve its customers better.
Comment by TJS: Passive voice needs to be removed. In
a sentence using active voice, the subject of the sentence needs
to perform the action expressed in the verb. Comment by TJS:
Passive voice needs to be removed. In a sentence using active
voice, the subject of the sentence needs to perform the action
expressed in the verb.
CONCLUSION
From Amazon’s strategies, it is apparent that adopting new
technologies is a worthy measure in influencing the firm’s
growth and development. Amazon has been able to reduce its
cost that were previously incurred in business and been able to
pose a great challenge in its competitors such as Walmart within
the same market share. Through Amazon’s innovative
strategies, the firm has in recent times been ranked as the
fastest-growing retailer. The inclusion of innovative
technologies in a firm’s supply chain management can hence be
of great advantage. Amazon has been able to reduce logistics
costs and cut down on delivery times as a result of automation
and outsourcing of certain key activities and focused on core
areas of the firm (Leblanc, 2019).
References
Amazon. (n.d.). Set your shipping rates - Amazon seller
central. https://sellercentral.amazon.com/gp/help/external/G201
841310
Leblanc, R. (2019, October 15). How Amazon Is Changing
Supply Chain Management. Small
Business. https://www.thebalancesmb.com/how-amazon-is-
changing-supply-chain-management-4155324
Marr, B. (n.d.). Amazon: Using big data to understand
customers. Bernard
Marr. https://www.bernardmarr.com/default.asp?contentID=712
Onstein, A. T., Tavasszy, L. A., & Van Damme, D. A. (2019).
Factors determining distribution structure decisions in logistics:
a literature review and research agenda. Transport
Reviews, 39(2), 243-260. DOI:
10.1080/01441647.2018.1459929
Ovenden, J. (2018, March 19). Amazon’s supply chain process |
Articles | Chief supply chain officer. Innovation Enterprise |
Channels. https://channels.theinnovationenterprise.com/articles/
amazon-s-supply-chain-process
PwC. (n.d.). The future of the Logistics
Industry. https://www.pwc.com/gx/en/transportation-
logistics/pdf/the-future-of-the-logistics-industry.pdf
Running Head: LOGISTICS 1
Running Head: LOGISTICS 10
Logistics and supply chain context
Stanley Thompson Jr.
DB 8035
3 May 2020
INTRODUCTION Comment by TJS: Additional specifics on
the NAFTA tribunal process, outsourcing strategy, and global
supply chain would have been nice to see.
Firms understand the reputational risk that the environment
could cost their suppliers as a result of the launch of the green
supply chain management initiatives. Firms have then opted to
collaborate and work jointly with their suppliers to facilitate
activities within the business and ensure that they are
environmentally friendly. Firms can hence engage with their
clients one of the following two ways. One option would be to
monitor their environmental performance or engaging with
suppliers and collaborating and joining forces to ensure there
are pro-environmental processes and practices are taken up
(“Collaborate with suppliers to ensure green practices in the
supply chain”, 2017). Therefore, this paper seeks to discuss
trade agreements that affect Amazon and their consequences,
ways in which Amazon applies the NAFTA tribunal process to
navigate laws that affect the firm's dealings, some of the global
collaborations strategies that Amazon may have implemented
and their risk factors and finally Amazon's global supply chain
strategy. Comment by TJS: Note that paragraphs need to be left
justified Comment by TJS: This is a key point Comment by
TJS: Anthropomorphisms should not be utilized. An
anthropomorphism is the attribution of human characteristics or
behavior to a good, animal, or object.
REGIONAL TRADE AGREEMENT
Regional and other trade agreements that affect Amazon
Trade agreements are aimed at creating opportunities for
firms to help grow the economy. Rules and policies are laid
down for firms aiming to carry out businesses in the markets
around the word and barriers are reduced to influence exports
while protecting the interests of the involved firms. There are a
few trade agreements that affect firms in the US which include
the World Trade Organization agreements, the Free Trade
Agreements, and the Bilateral Investment Treaties. The
government of the US has entered into treaties and agreements
to facilitates trading activities across its borders. Trade
agreements regulate taxes, tariffs, and duties imposed on
exports and imports (“Trade agreements”, (n.d.)). Comment by
TJS: This is certainly the intention Comment by TJS: There are
hundreds of trade agreements out there
Trade agreements may not always favor firms by providing
reduced rates on tax and other forms of duties. Firms at times
depend on duties and protective tariffs to shield themselves
from the competition by other firms. This makes it rather
difficult to conduct business hence end up going bankrupt and
subsequently out of business. Trade agreements are known to
trigger competing agreements with other nations to do business
with. This has often attributed to undo the few advantages that
trade agreements bring forth in an attempt to level the business
ground to make treading and business transactions less harsh
and more bearable (Scott & Schott, 2016). Comment by TJS:
This is an important point Comment by TJS: Correct. It is
a matter of perspective
Consequences of choosing the wrong characteristics when
classifying products for tariffs
When making agreements and signing treating that
influence trading activity, it is important to make sound
decisions during the negotiation process. In the past, there have
been horrifying results of trade agreements causing more harm
than good to firms and countries' economies. Firms and
governments need to have strong negotiation skills to make
better trade deals that equally and positively impact both parties
to the agreement. President Trump has put some effort into
renegotiating trade deals as he had promised to do. Better deals
were made with China who was America's source of automobile
imports. The US had the upper hand as the national security
tariffs on steel and aluminum. Due to the trade war with China,
a new deal was made between the United States, Mexico, and
Canada to replace the NAFTA agreement with USMCA (Scott &
Schott, 2016). Comment by TJS: This certainly can be the case
if things are not fully thought out
The North American Free Trade Agreement had several weak
points which led to huge losses and damages. Both the
American and Mexican labor forces were negatively impacted
by the North American Free Trade Agreement. Amazon as one
of the firms whose largest area of operation was in the US
suffered. Amazon is the leading online retailer in the US hence
items such as automobile spare parts are just some of the items
that are most purchased by Amazon's users. Firms shifted their
production and manufacturing activities to Mexico as there was
a cheaper source of labor as opposed to the United States. At
least 682,900 jobs were lost in the US as activities were shifted
down south (“Trade agreements”, (n.d.)). Comment by TJS:
Great point here Comment by TJS: Correct. This has been a
big area of contention
For products produced in Mexico was subjected to duties
and other forms of tax. This made the trade and business
environment quite harsh to deal with. In many cases, importing
countries would also impose additional tariffs on components
making it next to impossible to trade with other countries. The
price of commodities tends to become inflated causing firms to
spend more than they are ready to spend on purchases and
making little profit margins less than bearable to operate in.
costs incurred in operation tend to go above the roof making
business processes unsustainable for many firms (“Trade
agreements”, (n.d.)).
It is important to identify tariffs in trade agreements that could
influence the daily business activities. Working around trade
tariffs could be of great benefit to firms as negotiations can be
made to subsidize certain costs such as duty and tax expenses
incurred during exports and imports. Finding tariffs or
negotiating tariffs that could impact business activities is
considered as intelligent strategies on attempting to make a
breakthrough in a given market space as often there could be
better working conditions that could favor the daily business
dealing creating more profits easier and faster (Scott &
Schott, 2016). Comment by TJS: Great point here
Areas of uncertainties that can impact business strategies
At times, rules and regulations in treaties are quite unfair
to one party hence the oppressed party will often retaliate spike
a trade war. In this circumstance, it important that a tribunal
process is taken up to help solve the issue amicably. As the
most preferred method of recourse, it could be preferred that
both parties try to arbitrarily solve the issues at hand. This
could be done renegotiating the initial terms that may have been
harsh and tight to operate in. both parties can then air their
views and points of grievances to the other party for
reconsideration, renegotiation, and adjustment of terms. Both
parties have an understanding of what they want from the trade
agreements and how much they may be willing to give up
(Ikenson, 2019). Comment by TJS: Correct. Tit for tat
There may certain areas of the trade agreement that may need
adjustments of consideration. Parties may consider a slight
simplification of procedures that could then reduce costs
incurred to meet all compliance requirements for the benefit of
the environment. Complicated procedures are often unnecessary
as it only complicates issues for host countries to effectively
harness the nosiness gains from global supply chains. This
discourages both foreign and domestic investments. Standards
of compliance may need to be reconsidered and adjusted to be
made reasonable and archivable for firms seeking to conduct
businesses in a host country (“policy framework for investment
user's toolkit”, (n.d.)). Comment by TJS: Great point. At
times simplification is the key
Similarly, upon negotiations, transaction costs can be
sliced by a given percentage using more predictable and
transparent processes. Simplified clearance systems can be
implemented, and administrative requirements can be
harmonized. This is often done by the adoption of applicable
standards such as certification procedures, testing processes,
and uniform and impartial administrative border requirements.
This releases pressure on firms as they attempt to comply with
requirements, standards, and procedures associated with trade.
Custom procedures ought to be designed to provide
predictability, transparency, and simplicity. Impractical
regulations and requirements often compromise business
activities. Similarly, inefficiencies in administration procedures
hence creating unnecessary obstacles to firms who seek to do
business and carry out trade transactions within a host country.
This unnecessarily increases operational costs beyond a
sustainable level hence could possibly drive out businesses as
well as potential investors. (Ikenson, 2019) Comment by TJS:
Good discussion here
GLOBAL COLLABORATIONS
Amazon has greatly relied on outsourcing its inventory
management with more than 80% of its sales coming from third-
party sellers. Amazon's warehouses have been strategically
located and stocked. This makes it easier to transport and
deliver products to its customers. Using the push strategy,
Amazon forecasts the demand for certain items within a given
region while when products are from third-party sellers, it uses
the pull strategy. Similarly, Amazon had to acquire robotic
automated services for its daily business procedures. This
service was called the Kiva Systems which was later rebranded
as Amazon Robotics which provides robotic warehouse
solutions. Warehouse processes such as pick, drop, and
rearranging procedures are done without human supervision.
Amazon has hence been able to complete warehouse activities
quicker than before and kept its overall cost per unit at a
minimum (Leblanc, 2019). Comment by TJS: Correct. Many
do not realize this Comment by TJS: Fragments need to be
removed . Every sentence must have at least one main clause. A
main clause contains an independent subject and verb and
expresses a complete thought. Comment by TJS: It did require a
hefty investment though
GLOBAL SUPPLY CHAIN STRATEGY
Most deliveries are still being done by Amazon's branded
vehicles. Amazon has been described as the only firm in the
United States of America to have been able to leverage its
position to the point of partnering with corporates such as the
United States Postal Services and FedEx to deliver its products
to its customers. Most of its customers are quite impressed by
the prompt and timely deliveries. Amazon has opted for delivery
firms as they have a better understanding of route networks that
are proficient and adequate for delivery purposes. Amazon can
hence focus on other logistical challenges as deliveries have
been handled by more professional and experienced couriers
that they are. Comment by TJS: I agree with this statement
Amazon has as well partially implemented a drone-based
system that delivers products to the firm’s clients. The service
is called Amazon Prime Air where it delivers products weighing
under five pounds to locations within a ten-mile radius.
Delivery times have been cut to thirty minutes or even less.
This has greatly increased people’s loyalty to the retailing
online firm as they now have the capacity to push more products
out of their warehouses and make delivery drops at an increased
rate. This strategy was however faced with many hurdles along
the way as the firm still sought to realize the dream. The drones
are yet to be fully commissioned to handle delivery drops and
designed to self-destruct during flight in the event of any
technical hitches to reduce any resultant damages and harm to
people. Comment by TJS: Correct. Delivery will continue to
be an area of focus
GLOBAL RISK FACTORS
There are certain risk factors that are common to firms that take
up Green Supply Chain Management as such firms are heavily
dependent on data. With a lot of customer data, cyber-attacks
tend to be quite common in a world that has been connected by
the internet. This could hence cost the firm a great deal in
damages and reputation to its customers. Similarly, war and
conflict have a direct impact on supply chains hence production
can be stopped as there is limited access to materials. Country
disputes might as well erupt leading boycotts and economic
turmoil that could greatly impact supply processes. Supply
chains have a direct relation to labor and related laws as they
are the heart of supply chains. Any issues related to labor might
bring about a huge ripple effect compromising logistics and
other areas of supply (Ortegoli, & Ghadim, 2016). Comment by
TJS: Great point here
CONCLUSION
It is of great importance that Amazon ought to closely
scrutinize any agreements and treaties that impact its business
strategy. Tariffs may at times be unfavorable for any business
ventures to take place to their unpractically or at times is often
unsupportive of the firm's business strategy. Firms should
invest in economies that have bearable policies to facilitate
business development and ventures as a key requirement to the
success and a guarantee of the future for the entity
(“Collaborate with suppliers to ensure green practices in the
supply chain”,2017).
References
Amadeo, K. (2020, February 14). 6 negative effects of NAFTA.
The Balance. https://www.thebalance.com/disadvantages-of-
nafta-3306273
Collaborate with suppliers to ensure green practices in the
supply chain. (2017, July 20). Ideas for
Leaders. https://www.ideasforleaders.com/ideas/collaborate-
with-suppliers-to-ensure-green-practices-in-the-supply-chain
Ikenson, D. J. (2019, April 10). USMCA: A marginal NAFTA
upgrade at a high cost. Cato
Institute. https://www.cato.org/publications/commentary/usmca-
marginal-nafta-upgrade-high-cost
Leblanc, R. (219, October 15). How Amazon is changing supply
chain management. the balance small
business. https://www.thebalancesmb.com/how-amazon-is-
changing-supply-chain-management-4155324
Ortegoli, A., & Ghadim, M. R. (2016). The effect of risk factors
on the green supply chain and prioritizing of the effects by
using AHP. INTERNATIONAL JOURNAL OF HUMANITIES
AND CULTURAL STUDIES, 1478-
1493. http://www.ijhcs.com/index.php/ijhcs/index
policy framework for investment user's toolkit. (n.d.).
OECO. http://www.oecd.org/investment/toolkit/policyareas/trad
e/PFItoolkitTRADE.pdf
Scott, R. E., & Schott, J. J. (2016, March 17). Are Trade
Agreements Good for Americans? The New York
Times. https://www.nytimes.com/roomfordebate/2016/03/17/are
-trade-agreements-good-for-americans
Trade agreements. (n.d.). International Trade Administration |
International Trade
Administration. https://www.trade.gov/trade-agreements

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  • 1. Running Head: LOGISTICS 1 Running Head: LOGISTICS 7 Logistics and Supply Chain Operations Stanley Thompson Jr. DB 8035 24 May 2020 INTRODUCTION Amazon is one of the fastest growing online retailer company in the United States of America that has been able to overhaul its business structure by using innovative strategies in supply chain management. Amazon has left most of its competitors have a hard time trying to catch up. The firm has made huge investments in the management of its inventory to include recent forms of technology to beat its competition. The firm has optimized every link in its supply chain to ensure its customers are satisfied and well attended to (Leblanc, 2019). This paper hence seeks to discuss Amazons supply chain operation factors such as; transport and security, procurement and inventory management, technology and information management, and articulate some of the global risk factors affecting the firm. Comment by TJS: Paragraphs need to be left justified Comment by TJS: Great point here. Amazon is dominating the industry Comment by TJS: Anthropomorphisms should not be utilized. An anthropomorphism is the attribution of human characteristics or behavior to a good, animal, or
  • 2. object. TRANSPORTATION AND SECURITY Transportation cost structures, modes, and distribution centers, inventory control systems, and inventory costs reduction strategies Amazon initially launched a two-day delivery program for its customers to ensure that its customers had fast delivery of products but soon other competitors started catching on. Amazon hence had to make another adjustment in its freight services and now offers a two-hour delivery service to Amazon Prime customers. For product freight, Amazon has equally sub-contracted firms such as the United Parcel Service to transport its products to its customers. Amazon has been relying on third-party couriers to make their deliveries as they have a better-established delivery route and path that they can leverage for efficient delivery services (Leblanc, 2019). Comment by TJS: Yes. They set a new industry standard However, due to the consideration of numerous factors involved in using third-party carriers for deliveries, Amazon has developed its privately-owned freight service. Amazon hence uses its privately-owned vehicles to carry products to its clients specifically for same-day deliveries. In recent times, Amazon has been developing cargo freight service in certain specific areas where the firm uses drones to carry items straight to their clients who are within a 10-mile radius from their warehouses. This has cut product deliveries to half an hour or less. Amazon is progressively incorporating newer technologies in its supply chain that systems can hence run without human supervision. This strategy has been articulated to be efficient so far as there are has been reduced inventory management costs over the last few years since the acquisition of Kiva Systems (Leblanc, 2019). Comment by TJS: Which give them a greater level of control Comment by TJS: Which will improve performance even more Relationships between freight rates and consignment weight Amazon offers freight services for all products irrespective
  • 3. of their size. Customers hence have a wide area of flexibility in as far as product freight and its weight are concerned. It has however been articulated that small packages tend to make most courier services incur huge freight costs as they charge as per their weight. Upon making an order on the Amazon website, the firm has developed a standard shipping rate upon which the customer is charged. The firm charges a standard four dollars shipping fee and an additional half a dollar for every pound of weight that the product weighs. There are however other factors that come into play in calculation of the shipping fee such as how fast the client expects the item (Amazon, (n.d.)). Issues that can impact the efficiency of transport Amazon prefers to outsource delivery services of their sold products to outside delivery couriers. Amazon however, does own several vehicles that they also use but their main use is deliveries between warehouses. Amazon's strategy is to leverage other courier services to deliver its products as the firm lacks a well-defined delivery network as opposed to firms such as the United Parcel Service and FedEx. Outsourcing for delivery service has a direct influence on the cost incurred. Amazon had found it cheaper contracting other firms for their deliveries and have even further greatly encouraged some of their employees to start up small cargo delivery services (Onstein, Tavasszy, & Van Damme, 2019). Comment by TJS: This is an important point to understand Similarly, still on costs and efficiency of warehousing operations, Amazon has greatly found favor in incorporating more recent innovations in technology. More than half of every aspect in each of the firm’s warehouse has been upgraded to include a complex and automated inventory system. Amazon’s warehouses are largely run by robots that have been equipped with the ability to go about various activities within the warehouse without any human supervision as previously mentioned. Through the automation of the firm’s warehouses, Amazon has been able to seamlessly achieve efficient ways of delivering to its clients and influence the rate of satisfaction in
  • 4. their clients (Onstein, Tavasszy, & Van Damme, 2019). Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. Comment by TJS: Exactly. Great point Alternatively, geographical location is also a factor that influences efficiency in transportation. Amazon’s warehouses have been strategically positioned in numerous locations around the globe. Their location ensures there is easy accessibility to a well-defined road network for purposes of deliveries. With most of the firm’s deliveries being handled by road, this greatly favors the effective delivery of products. For clients within a ten-mile radius, deliveries are often done within half an hour placing the order with the help of cargo drones (Onstein, Tavasszy, & Van Damme, 2019). Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. Impact of relevant security initiatives, logistics and transportation risks, and transport security technical systems Most if not all of Amazon’s customers expect that deliveries of their products can be handled in a time-sensitive manner. Therefore, this means that the firm ought to find ways to guarantee timely product deliveries. For Amazon, this would mean that to ensure that there are timely deliveries, there is a need to take up newer technologies and find other measures such as contract outside delivery services. Similarly, there would also be a need to take up newer and innovative technologies such as the use of drones for air freight (PwC, (n.d.)). Comment by TJS: Yes. This is key to their success Most of the firm’s warehousing operations are largely handled by unmanned robots. This move to automate has proved to be of great help to the firm. Orders are seamlessly being processed as the warehouses have a complex inventory system that can run without any human presence. This cuts the time taken in processing and delivery of orders. Warehousing
  • 5. activities can hence run on a 24-hour basis with orders being processed on a real-time basis and efficiently being delivered to meet the client’s expectation hence influencing the satisfaction levels in customers (PwC, (n.d.)). Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. Numerous firms offer stiff competition to Amazon in as much as it is articulated to be one of the world’s largest retailing firms. As a way to ensure that the firm keeps ahead of its competition, Amazon needs to find ways to ensure it offers satisfactory service and goods to their clients. Amazon has then opted to manufacture as well as form partnerships with some small retailing stores that supply to the firm most of the ordered items. Amazon has hence redefined collaboration in business (PwC, (n.d.)). PROCUREMENT AND INVENTORY MANAGEMENT Sourcing and procurement strategies Most of Amazon’s supply chain depends heavily on outsourced measures. Vendors can ship their products to Amazon’s warehouse locations where they are stored anticipating a client to make an order upon which they can hence be shipped to a specified location. Amazon’s sourcing and procurement strategies hence mandates that the firm stores most of the frequently bought products while products that are not frequently bought are not stored at the firm’s warehouse. This hence greatly facilitates same-day deliveries to clients which are mainly handled by the firm’s own logistics means. Depending on outsourced logistics could greatly compromise same-day deliveries due to delayed shipments (Leblanc, 2019). Comment by TJS: Correct. This is something that has to be monitored Inventory control systems used by Amazon Amazon as the leading online retailer in the U.S has been
  • 6. articulated to greatly rely on innovative technologies. Amazon warehouses are largely automated as a complex inventory management system has been incorporated to run the firm’s facilities. With most operations being automated, robots are responsible for handling products within the warehouse without any human supervision. Amazon boasts of a huge customer following and to ensure the firm delivers its services to its large clientele, Amazon has a sophisticated information technology that can concurrently run its extensive network of warehouses. With the multi-tier inventory management and well-defined logistics plan, it can beat its competition in the market (Leblanc, 2019). Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. Inventory cost reduction strategies used by Amazon Amazon, as a way to hit back on its competitors, the firm has incorporated various strategies to out-do its competition. Most of the logistics operations are mainly done by third-party carriers. This reduced the pressure off the firm’s back in trying to develop delivery routes yet some firms can be leveraged upon to handle shipment on behalf of the firm. Similarly, amazon outsources its inventory. Most of the items in Amazon’s warehouses are obtained from third-party sellers whose goods are stocked based on their demand in the market. With the help of information technology systems, the firm can forecast the projected inventory and stock their warehouses cutting on delivery times (Leblanc, 2019). Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb.
  • 7. TECHNOLOGY AND INFORMATION MANAGEMENT Logistics automation and logistic systems costs In the year 2012, Amazon acquired Kiva Systems which is a company that mainly dealt with the development of robots. Kiva Systems late became Amazon Robotics which now developed robots that picked and packed items in Amazon’s warehouses with barely any human supervision. Warehouse operations became automated hence time was cut in processing orders before deliveries. In recent times, Amazon has been developing drones to deliver goods to their customers through a drone- based delivery system dubbed Amazon Prime Air that operates within a radius of 10 miles from any Amazon center and for products below five pounds (Leblanc, 2019). Data capture methods used With Amazon’s great involvement in using newer technologies in its business operations, the firm has been articulated to use big data methodologies in understanding its clientele. Amazon hence uses big data to gather information of their customers as they browse through the firm’s website. This way, the firm can develop a recommendation list that is specific to their customer based on their previous searches. This innovative strategy tends to streamline the convincing power urging the customer to purchase whatever they can see on their product feed. Big data is hence more collaborative filtering which gathers data of who their customer is based on their searches and develops a profile of each customer (Marr, (n.d.)). Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. Comment by TJS: Good discussion here Data flows in the supply chain It has been articulated that Amazon’s success comes from its effective supply chain management. Amazon’s supply chain is simple as it starts with an order being placed by a customer which sends an alert to the warehouse indicating the order details of the items ordered. With the complexity of the
  • 8. inventory system in the warehouse, by automation a robot can pick and place an item ordered and the item can be processed ready for shipping. The item is cross-referenced by the order details and sorted automatically then packaged for delivery. The item can then be delivered based on the details of the customer’s preference in the shipping method (Ovenden, 2018). Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. GLOBAL RISK FACTORS The effectiveness of Amazon’s approach to GSCM Amazon has been ranked as one of the largest and fastest- growing online retailer firm in the United States of America. The firm boasts of a large customer following who has built a close preference and relationship due to the effectiveness of the firm’s services. Based on statistics, Amazon’s strategies in supply chain management have been articulated to be effectively working. Amazon has been able to significantly cut down its delivery times over a rather short time. With the inclusion of innovative technologies in the firm’s inventory control and logistics, the firm has significantly reduced costs incurred in logistics and procure of its inventory. This has only enabled the firm to seamlessly serve its customers better. Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. Comment by TJS: Passive voice needs to be removed. In a sentence using active voice, the subject of the sentence needs to perform the action expressed in the verb. CONCLUSION From Amazon’s strategies, it is apparent that adopting new
  • 9. technologies is a worthy measure in influencing the firm’s growth and development. Amazon has been able to reduce its cost that were previously incurred in business and been able to pose a great challenge in its competitors such as Walmart within the same market share. Through Amazon’s innovative strategies, the firm has in recent times been ranked as the fastest-growing retailer. The inclusion of innovative technologies in a firm’s supply chain management can hence be of great advantage. Amazon has been able to reduce logistics costs and cut down on delivery times as a result of automation and outsourcing of certain key activities and focused on core areas of the firm (Leblanc, 2019). References Amazon. (n.d.). Set your shipping rates - Amazon seller central. https://sellercentral.amazon.com/gp/help/external/G201 841310 Leblanc, R. (2019, October 15). How Amazon Is Changing Supply Chain Management. Small Business. https://www.thebalancesmb.com/how-amazon-is- changing-supply-chain-management-4155324 Marr, B. (n.d.). Amazon: Using big data to understand customers. Bernard Marr. https://www.bernardmarr.com/default.asp?contentID=712 Onstein, A. T., Tavasszy, L. A., & Van Damme, D. A. (2019). Factors determining distribution structure decisions in logistics: a literature review and research agenda. Transport Reviews, 39(2), 243-260. DOI: 10.1080/01441647.2018.1459929 Ovenden, J. (2018, March 19). Amazon’s supply chain process | Articles | Chief supply chain officer. Innovation Enterprise | Channels. https://channels.theinnovationenterprise.com/articles/ amazon-s-supply-chain-process PwC. (n.d.). The future of the Logistics Industry. https://www.pwc.com/gx/en/transportation- logistics/pdf/the-future-of-the-logistics-industry.pdf
  • 10. Running Head: LOGISTICS 1 Running Head: LOGISTICS 10 Logistics and supply chain context Stanley Thompson Jr. DB 8035 3 May 2020 INTRODUCTION Comment by TJS: Additional specifics on the NAFTA tribunal process, outsourcing strategy, and global supply chain would have been nice to see. Firms understand the reputational risk that the environment could cost their suppliers as a result of the launch of the green supply chain management initiatives. Firms have then opted to collaborate and work jointly with their suppliers to facilitate activities within the business and ensure that they are environmentally friendly. Firms can hence engage with their clients one of the following two ways. One option would be to monitor their environmental performance or engaging with suppliers and collaborating and joining forces to ensure there are pro-environmental processes and practices are taken up (“Collaborate with suppliers to ensure green practices in the supply chain”, 2017). Therefore, this paper seeks to discuss trade agreements that affect Amazon and their consequences, ways in which Amazon applies the NAFTA tribunal process to navigate laws that affect the firm's dealings, some of the global collaborations strategies that Amazon may have implemented and their risk factors and finally Amazon's global supply chain strategy. Comment by TJS: Note that paragraphs need to be left justified Comment by TJS: This is a key point Comment by
  • 11. TJS: Anthropomorphisms should not be utilized. An anthropomorphism is the attribution of human characteristics or behavior to a good, animal, or object. REGIONAL TRADE AGREEMENT Regional and other trade agreements that affect Amazon Trade agreements are aimed at creating opportunities for firms to help grow the economy. Rules and policies are laid down for firms aiming to carry out businesses in the markets around the word and barriers are reduced to influence exports while protecting the interests of the involved firms. There are a few trade agreements that affect firms in the US which include the World Trade Organization agreements, the Free Trade Agreements, and the Bilateral Investment Treaties. The government of the US has entered into treaties and agreements to facilitates trading activities across its borders. Trade agreements regulate taxes, tariffs, and duties imposed on exports and imports (“Trade agreements”, (n.d.)). Comment by TJS: This is certainly the intention Comment by TJS: There are hundreds of trade agreements out there Trade agreements may not always favor firms by providing reduced rates on tax and other forms of duties. Firms at times depend on duties and protective tariffs to shield themselves from the competition by other firms. This makes it rather difficult to conduct business hence end up going bankrupt and subsequently out of business. Trade agreements are known to trigger competing agreements with other nations to do business with. This has often attributed to undo the few advantages that trade agreements bring forth in an attempt to level the business ground to make treading and business transactions less harsh and more bearable (Scott & Schott, 2016). Comment by TJS: This is an important point Comment by TJS: Correct. It is a matter of perspective Consequences of choosing the wrong characteristics when classifying products for tariffs When making agreements and signing treating that influence trading activity, it is important to make sound
  • 12. decisions during the negotiation process. In the past, there have been horrifying results of trade agreements causing more harm than good to firms and countries' economies. Firms and governments need to have strong negotiation skills to make better trade deals that equally and positively impact both parties to the agreement. President Trump has put some effort into renegotiating trade deals as he had promised to do. Better deals were made with China who was America's source of automobile imports. The US had the upper hand as the national security tariffs on steel and aluminum. Due to the trade war with China, a new deal was made between the United States, Mexico, and Canada to replace the NAFTA agreement with USMCA (Scott & Schott, 2016). Comment by TJS: This certainly can be the case if things are not fully thought out The North American Free Trade Agreement had several weak points which led to huge losses and damages. Both the American and Mexican labor forces were negatively impacted by the North American Free Trade Agreement. Amazon as one of the firms whose largest area of operation was in the US suffered. Amazon is the leading online retailer in the US hence items such as automobile spare parts are just some of the items that are most purchased by Amazon's users. Firms shifted their production and manufacturing activities to Mexico as there was a cheaper source of labor as opposed to the United States. At least 682,900 jobs were lost in the US as activities were shifted down south (“Trade agreements”, (n.d.)). Comment by TJS: Great point here Comment by TJS: Correct. This has been a big area of contention For products produced in Mexico was subjected to duties and other forms of tax. This made the trade and business environment quite harsh to deal with. In many cases, importing countries would also impose additional tariffs on components making it next to impossible to trade with other countries. The price of commodities tends to become inflated causing firms to spend more than they are ready to spend on purchases and making little profit margins less than bearable to operate in.
  • 13. costs incurred in operation tend to go above the roof making business processes unsustainable for many firms (“Trade agreements”, (n.d.)). It is important to identify tariffs in trade agreements that could influence the daily business activities. Working around trade tariffs could be of great benefit to firms as negotiations can be made to subsidize certain costs such as duty and tax expenses incurred during exports and imports. Finding tariffs or negotiating tariffs that could impact business activities is considered as intelligent strategies on attempting to make a breakthrough in a given market space as often there could be better working conditions that could favor the daily business dealing creating more profits easier and faster (Scott & Schott, 2016). Comment by TJS: Great point here Areas of uncertainties that can impact business strategies At times, rules and regulations in treaties are quite unfair to one party hence the oppressed party will often retaliate spike a trade war. In this circumstance, it important that a tribunal process is taken up to help solve the issue amicably. As the most preferred method of recourse, it could be preferred that both parties try to arbitrarily solve the issues at hand. This could be done renegotiating the initial terms that may have been harsh and tight to operate in. both parties can then air their views and points of grievances to the other party for reconsideration, renegotiation, and adjustment of terms. Both parties have an understanding of what they want from the trade agreements and how much they may be willing to give up (Ikenson, 2019). Comment by TJS: Correct. Tit for tat There may certain areas of the trade agreement that may need adjustments of consideration. Parties may consider a slight simplification of procedures that could then reduce costs incurred to meet all compliance requirements for the benefit of the environment. Complicated procedures are often unnecessary as it only complicates issues for host countries to effectively harness the nosiness gains from global supply chains. This discourages both foreign and domestic investments. Standards
  • 14. of compliance may need to be reconsidered and adjusted to be made reasonable and archivable for firms seeking to conduct businesses in a host country (“policy framework for investment user's toolkit”, (n.d.)). Comment by TJS: Great point. At times simplification is the key Similarly, upon negotiations, transaction costs can be sliced by a given percentage using more predictable and transparent processes. Simplified clearance systems can be implemented, and administrative requirements can be harmonized. This is often done by the adoption of applicable standards such as certification procedures, testing processes, and uniform and impartial administrative border requirements. This releases pressure on firms as they attempt to comply with requirements, standards, and procedures associated with trade. Custom procedures ought to be designed to provide predictability, transparency, and simplicity. Impractical regulations and requirements often compromise business activities. Similarly, inefficiencies in administration procedures hence creating unnecessary obstacles to firms who seek to do business and carry out trade transactions within a host country. This unnecessarily increases operational costs beyond a sustainable level hence could possibly drive out businesses as well as potential investors. (Ikenson, 2019) Comment by TJS: Good discussion here GLOBAL COLLABORATIONS Amazon has greatly relied on outsourcing its inventory management with more than 80% of its sales coming from third- party sellers. Amazon's warehouses have been strategically located and stocked. This makes it easier to transport and deliver products to its customers. Using the push strategy, Amazon forecasts the demand for certain items within a given region while when products are from third-party sellers, it uses the pull strategy. Similarly, Amazon had to acquire robotic automated services for its daily business procedures. This service was called the Kiva Systems which was later rebranded as Amazon Robotics which provides robotic warehouse
  • 15. solutions. Warehouse processes such as pick, drop, and rearranging procedures are done without human supervision. Amazon has hence been able to complete warehouse activities quicker than before and kept its overall cost per unit at a minimum (Leblanc, 2019). Comment by TJS: Correct. Many do not realize this Comment by TJS: Fragments need to be removed . Every sentence must have at least one main clause. A main clause contains an independent subject and verb and expresses a complete thought. Comment by TJS: It did require a hefty investment though GLOBAL SUPPLY CHAIN STRATEGY Most deliveries are still being done by Amazon's branded vehicles. Amazon has been described as the only firm in the United States of America to have been able to leverage its position to the point of partnering with corporates such as the United States Postal Services and FedEx to deliver its products to its customers. Most of its customers are quite impressed by the prompt and timely deliveries. Amazon has opted for delivery firms as they have a better understanding of route networks that are proficient and adequate for delivery purposes. Amazon can hence focus on other logistical challenges as deliveries have been handled by more professional and experienced couriers that they are. Comment by TJS: I agree with this statement Amazon has as well partially implemented a drone-based system that delivers products to the firm’s clients. The service is called Amazon Prime Air where it delivers products weighing under five pounds to locations within a ten-mile radius. Delivery times have been cut to thirty minutes or even less. This has greatly increased people’s loyalty to the retailing online firm as they now have the capacity to push more products out of their warehouses and make delivery drops at an increased rate. This strategy was however faced with many hurdles along the way as the firm still sought to realize the dream. The drones are yet to be fully commissioned to handle delivery drops and designed to self-destruct during flight in the event of any technical hitches to reduce any resultant damages and harm to
  • 16. people. Comment by TJS: Correct. Delivery will continue to be an area of focus GLOBAL RISK FACTORS There are certain risk factors that are common to firms that take up Green Supply Chain Management as such firms are heavily dependent on data. With a lot of customer data, cyber-attacks tend to be quite common in a world that has been connected by the internet. This could hence cost the firm a great deal in damages and reputation to its customers. Similarly, war and conflict have a direct impact on supply chains hence production can be stopped as there is limited access to materials. Country disputes might as well erupt leading boycotts and economic turmoil that could greatly impact supply processes. Supply chains have a direct relation to labor and related laws as they are the heart of supply chains. Any issues related to labor might bring about a huge ripple effect compromising logistics and other areas of supply (Ortegoli, & Ghadim, 2016). Comment by TJS: Great point here CONCLUSION It is of great importance that Amazon ought to closely scrutinize any agreements and treaties that impact its business strategy. Tariffs may at times be unfavorable for any business ventures to take place to their unpractically or at times is often unsupportive of the firm's business strategy. Firms should invest in economies that have bearable policies to facilitate business development and ventures as a key requirement to the success and a guarantee of the future for the entity (“Collaborate with suppliers to ensure green practices in the supply chain”,2017). References Amadeo, K. (2020, February 14). 6 negative effects of NAFTA. The Balance. https://www.thebalance.com/disadvantages-of- nafta-3306273 Collaborate with suppliers to ensure green practices in the supply chain. (2017, July 20). Ideas for
  • 17. Leaders. https://www.ideasforleaders.com/ideas/collaborate- with-suppliers-to-ensure-green-practices-in-the-supply-chain Ikenson, D. J. (2019, April 10). USMCA: A marginal NAFTA upgrade at a high cost. Cato Institute. https://www.cato.org/publications/commentary/usmca- marginal-nafta-upgrade-high-cost Leblanc, R. (219, October 15). How Amazon is changing supply chain management. the balance small business. https://www.thebalancesmb.com/how-amazon-is- changing-supply-chain-management-4155324 Ortegoli, A., & Ghadim, M. R. (2016). The effect of risk factors on the green supply chain and prioritizing of the effects by using AHP. INTERNATIONAL JOURNAL OF HUMANITIES AND CULTURAL STUDIES, 1478- 1493. http://www.ijhcs.com/index.php/ijhcs/index policy framework for investment user's toolkit. (n.d.). OECO. http://www.oecd.org/investment/toolkit/policyareas/trad e/PFItoolkitTRADE.pdf Scott, R. E., & Schott, J. J. (2016, March 17). Are Trade Agreements Good for Americans? The New York Times. https://www.nytimes.com/roomfordebate/2016/03/17/are -trade-agreements-good-for-americans Trade agreements. (n.d.). International Trade Administration | International Trade Administration. https://www.trade.gov/trade-agreements