Therefore, the challenges towards the disruptions in the supply chain have increased in recent years which include evident factors of sufficient demand oriented supply, preparation of resources for holding large orders and improvement in the technical Infrastructure. With consideration to the significant factors of risks in supply chain management of Amazon, it can be gathered that the challenges related to lost packages has increased. With the majority of the products getting lost, the company of Amazon ensures the compensation on an hourly basis towards the sellers and the consumers which is causing the company to suffer with a huge amount of losses (Tadaiesky et al., 2022). With certain disruptions including demand orient supply, the procedures of reimbursements and terms of policies are thus also maintained by the corporation. Further, it can be gathered that with the peak season demands like Black Friday and Christmas, Amazon has faced disruptions in certain regions. According to Ding et al., (2022) In the Christmas of 2013, a major breakdown in the logistics system was experienced by the corporation of Amazon which resulted in severe losses during peak seasons and also failed to receive orders from consumers. As Amazon intends to ensure the largest shipping organisation in the globe with the inclusion of the largest delivery network, the disruptions towards the supply chain management system of Amazon can be difficult to incorporate and streamline operational procedures in different regions.
Therefore, it can be observed that the corporation of Amazon is signified towards their unfair practices which are causing higher rates in unemployment with higher factors of unreliability, lower wages, unsafe conditions of working as well as growth in unequal factors of working conditions which is also highlighting a negative portrayal of the brand image in the current retail sector. According to Yu et al., (2022), it can be found by the ILSR that at the end of 2015, the corporation had an overall employee count of 146,000 which was further suspended with a force elimination of 295,000 retail jobs with a net loss in employment of 149,000 jobs. Therefore, it can be gathered that the corporation’s practices towards labourers are seemingly causing temporary employment structures along with gruelling working procedures which cannot be tolerated in the current consumer market. With consideration towards the factor of lower wages it can be derived that the Amazon warehouses earn a less amount of wage than the overall counterparts of the industry. It can be also found that Amazon's wages can be significantly 15% lower than the comparable wages of metropolitan areas in a country, with a declined factor of 19% lower in living wage in a specific region (Mestanza-Ramón et al., 2022). Therefore, the factors of reliability are highly declining in the sectors of Amazon labouring conditions, where the majority
of the labourers can be positioned as “seasonal”. Therefore, difficulties related to staffing and unsafe working conditions enable a greater challenge to the corporation of Amazon in ensuring effective manufacturing benefits to the company.
References
Tadaiesky, D.C., Neto, J.L.D.N., Melo, A.C.S., Anholon, R., de Castro Coutinho, E. and Martins, V.W.B., 2022. Challenges to Promoting Resilience in Supply Chains Observed during the COVID-19 Pandemic: An Exploratory Study of the Amazon Region Using the TOPSIS Technique. Logistics, 6(4), p.78.
Ding, C., Liu, L., Zheng, Y., Liao, J. and Huang, W., 2022. Role of Distribution Centers Disruptions in New Retail Supply Chain: An Analysis Experiment. Sustainability, 14(11), p.6529.
Yu, W., Hassan, A. and Adhikariparajuli, M., 2022. How did Amazon achieve CSR and some Sustainable Develop-ment Goals (SDGs)-climate change, circular economy, water 3 resources and employee rights during COVID-19? 4.
Mestanza-Ramón, C., Mora-Silva, D., D’Orio, G., Tapia-Segarra, E., Gaibor, I.D., Esparza Parra, J.F., Chávez Velásquez, C.R. and Strafe, S., 2022. Artisanal and Small-Scale Gold Mining (ASGM): Management and Socioenvironmental Impacts in the Northern Amazon of Ecuador. Sustainability, 14(11), p.6854.