Introduction
Currently, supply chains are extremely complex in order to meet the needs of customers. The value proposition is a set of all services and goods that the supply chain offers to the consumer (Payne et al., 2020). Modern supply chains have gone beyond the focus of delivering services and goods at the lowest cost, making them more complex. To describe and analyze modern supply chains, the EERS model was presented, which includes the key characteristics of the present environment. Within the framework of this model, it is possible to evaluate such features of supply chains as effectiveness, efficiency, relevance, and sustainability. Amazon, in this case, as the largest multinational company, has an extremely strong value proposition, which well reflects all aspects of the EERS model.
Amazon’s EERS Value Diamond
Within the EERS model, to assess the value proposition of a company, it is important to consider the entire domain of the EERS model. For a company as large as Amazon, all aspects of the value proposition are significant and easy to track. When it comes to efficiency, Amazon always has focused on easy and fast access to products and services. Starting as an online bookstore, the company aimed to provide customers with ubiquitous access to books. The company now delivers thousands of products to people around the world in the shortest possible time, which is the basis of its value proposition.
In terms of efficiency, Amazon also minimizes the cost of delivering a unit of goods to a customer through the reduction of points in the supply chain. In particular, the company has its own warehouses, sorting centers, and delivery services, which allows you to cut costs. Amazon needs to partner only with manufacturers of goods and services, minimizing additional delivery costs. When it comes to relevancy, Amazon’s supply chains are extremely flexible, as they allow customers to choose from millions of products. Each of them can be delivered anywhere in the world in the shortest possible time, which makes the supply chain susceptible to change.
Amazon, as one of the largest multinational companies, pays special attention to the sustainability of its activities and supply chains. In particular, the company is working to reduce carbon emissions, promote electric transport, raise awareness of socially significant issues, and create equal and comfortable working conditions (Amazon sustainability, n.d). This approach is one of the integral parts of the company’s value proposition and allows creating more sustainable supply chains.
Conclusion
Within the EERS model, it is important to be aware that not all dimensions are of equal importance. The importance of an element can vary from customer to customer, requiring the supply chain to respond effectively to individual needs. The value proposition conclusion drawn from the analysis of measurements of the EERS model for Amazon emphasizes that the company’s supply chain is stable and flexible enough to meet customer needs. Most importantly, the company offers a huge selection of products, all of which can be delivered to customers. Minimizing delivery costs also satisfies efficiency needs in most cases. The company focuses on continuous growth and development, which makes it flexible and sensitive to changes in the environment. Additionally, efforts to create more sustainable supply chains allow Amazon to position itself as a socially significant business. Thus, the value proposition of the company implies concern for the needs of customers and maximizing focus on all domains of the EERS model. This factor makes the company’s supply chains the most efficient under current market conditions.
References
Amazon sustainability. (n.d). Amazon. Web.
Payne, A., Frow, P., Steinhoff, L., & Eggert, A. (2020). Toward a comprehensive framework of value proposition development: From strategy to implementation. Industrial Marketing Management, 87, 244-255. Web.