The Role of Strategic Sourcing on Global Supply Chain Competitiveness

Supply Chain Integration


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Amazon is one of the companies that have integrated supply chain operations in its workplace. Supply chain integration entails the involvement of different company departments to fulfill its products and services into a single system. Thus, supply chain integration needs significant alignment and coordination to ensure each team member works for hand in hand and effectively to achieve the set goals and targets. The essay will look into the following: – how the company’s sales and operations planning in supply chain integration impact its performance, company’s medium- and long-term forecast and projections inform the operations management, how the transportation modes, logistics, and warehouse locations impact Amazon’s competitiveness, the impacts of global sourcing and procurement to the company’s overall effectiveness of the supply chain, the benefits, and challenges encountered when outsourcing logistic functions, how Amazon successfully leveraged e-commerce strategies to introduce, promote and boost sales and growth through supply chain integration, strategies that have been particularly effective and why, how Amazon sets an example for other firms to model regarding supply chain integration and lastly, how conscious capitalism and the Christian worldview impacts Amazon’s supply chain integration.

Sales and operation planning are among the essential aspects of the supply chain management of an organization. The concept focuses on providing primary communication links for upper management to coordinate various planning practices in a business. Amazon is among the top organizations that understand the most strategic sales and operation planning initiatives. In particular, S&O has a significant impact on the overall organizational performance and success. For instance, it has been linked to eliminating the conflict between ownership and finished goods inventory by offering vital visibility into the critical interactions between marketing, sales, production, and finance. It also facilitates better integration between functional areas in the organization. Specifically, a collaboration between the top levels of the functional areas is achieved; it can be transformed into detailed plans that align with top-level agreements (Kot, 2018). 

Medium and long-term prediction of an organization is vital to develop goals and set objectives to achieve such goals effectively. With the help of the forecasts, the operation management department can recognize that the company decisions made by Amazon are suitable and strategic; hence can align with the products that cannot be obtained at the same time. It will ensure that its customer-centric operation strategy and activities align with investment policy. Amazon’s logistic strategy has influenced its competitiveness to stand out from the crown. With its same-day provision and one-hour delivery in leading U.S. cities, in addition to WI-FI connected button, clients can reorder the selected goods immediately. The initiative has facilitated the company to use on-demand time slots, customer-focused delivery speeds, and flexible dispatch locations to separate the company from other players in the industry hence enhancing its competitiveness (Kot, 2018). 





Amazon’s supply chain has adopted the concept of global sourcing that has influenced its various strategic policies and decisions, which comprise inventory management policies. The lead times for globally sourced materials are often uncertain and lengthy, requiring more inventory. The organization has been forced to alter its inventory management policy, particularly if it believes in a lean supply chain. Business process offshoring decisions have also been influenced in that Amazon now searches for cheaper and higher quality materials. It has implemented business process offshoring, a practice where the company shifts the operations from the parent country to where resources are available at a lower price. Procurement has also influenced the supply chain management of Amazon. The company has an opportunity to use external sources such as transportation to ensure the supply of goods does not face any operational issues (Biazzin, 2020).

Some benefits have occurred when Amazon outsources logistics and other functions. Amazon has substantially enhanced its operations through improved efficiency and effectiveness. For instance, it has managed to reduce freight costs while improving the quality of its products. It has also become more flexible, which has enabled the firm to streamline the product delivery process, thereby addressing customers’ needs more effectively. However, outsourcing has been attributed to challenging meeting specific standards and results. For instance, Amazon’s growth needs may not be considered, and the approaches and systems used by parties may not align with those of Amazon, creating a rift (Biazzin, 2020).

Amazon has integrated its e-commerce approaches to foster supply chain integration and sales and growth. In particular, Amazon divides its customer segments and adheres to a price differentiation approach. Some dispatch forms comprise one-day delivery, prime client delivery, and superclass delivery. One of the e-commerce strategies that has stood the test of time is the two-day and one-hour delivery approaches. In particular, Amazon launched its Amazon Prime service in 2005 by allowing customers to pay a membership fee which guaranteed customers two-day shipping on many products. The implementation of the approach was a game-changer, and other players in the industry struggled to catch up. Amazon later launched one-hour delivery, giving Amazon dominance over other players (Bowen, 2019).

Amazon has set an example of supply chain integration by transforming from a basic online bookseller to optimum intriguing competitiveness in the retail sector, making it excellent and competent. Its innovative, highly efficient supply chain that reinforces the firm to dispatch goods to buyers in the shortest period has put significant pressure on other retail segment players worldwide, transforming supply chain management. It is the favorite choice for consumers due to its fast and efficient supply chain management. The integration of innovative information technology and remarkable transportation, a broad network of locations, and multi-level inventory governance make the company’s supply chain the most reliable among all the major players in the globe (Blanc, 2020).

My conscious capitalism and Christian view do not negatively influence Amazon’s supply chain because the company is operating morally and ethically. In particular, conscious capitalism entails businesses working ethically while pursuing profits. This indicates that they should consider serving all stakeholders involved, including employees, the environment, and humanity. Amazon has achieved this and has only focused on becoming top-notch operational. The world Christian view does not minimize profit-making but encourages the adoption of all common interests into the company. By making other players struggle to catch up with them, Amazon is not behaving unethically but rather competitively to stand out from the crowd. Some have argued that is approaches in the supply chain often devastate the competition, making it challenging for other firms to operate. However, this is not mean that the company is immoral or inconsiderate because it is obliged to continuously innovate and become the world’s best retail company in the industry (Lierow & Wyman, 2016). 

The company’s supply chain is ethical, given that its goal is securing and increasing customer convenience. Predicting parcel delivery in an hour is the manager’s perception, not the buyer’s mindset. In particular, providing clients who buy goods digitally with customer-focused and fee-derived dispatch slots is far more creative. Yet, such innovation is not always more expensive than traditional delivery approaches. Such innovation has seen the retail industry engage in healthy competition, enhancing growth and competitiveness.

Moreover, other companies such as JP Morgan and Berkshire Hathaway have managed to form a partnership with Amazon. Long term, the association has given Amazon the power and access required while safeguarding the partner company. Therefore, conscious capitalism and a Christian worldview would not negatively impact Amazon’s supply chain integration (Lierow & Wyman, 2016).


Integrating the supply chain into its systems has enabled Amazon to achieve a competitive advantage across its industry. For over a decade, Amazon has shown great performance. The supply chain helps coordinate the company’s operations into a single goal. It ensures teamwork across all the channels of production. Amazon achieves innovation through workplace diversity and teamwork, which are the key elements of the supply chain. 















Biazzin, C. (2020). The Role of Strategic Sourcing on Global Supply Chain Competitiveness. In Managing Operations Throughout Global Supply Chains (pp. 159-180). Retrieved from

Blanc, R. (2020, November 13). How Amazon Is Changing Supply Chain Management. Retrieved from The Balance Small Business:

Bowen, S. (2019, August 20). Five Ways Sales and Operations Planning Enables Success And Drives Business Integration. Retrieved from Forbes:

Kot, S. (2018). Sustainable Supply Chain Management in Small and Medium Enterprises. Sustainability, 10(4). Retrieved from

Lierow, M., & Wyman, O. (2016, February 18). Amazon Is Using Logistics to Lead a Retail Revolution. Retrieved from Forbes:



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