Question

Before Amazon launched its air cargo operation, they invested in detailed planning.Describe the steps planning process and provide examples relevant to Amazon’s air cargo operation to support your discussion.

Answer 1

The planning process followed by Amazon to decide upon its air cargo operations, are as follows:

· Requirements gathering analysis: The primary stakeholders of business are met and their requirements with an air cargo operation is discussed upon. The functionalities desired by the stakeholders as well as the constraints identified by them are noted down for further contemplation

· Development of project scope and charter: Based on the analysis of the requirements gathered in the previous phase, the project scope and charter is developed. The dedicated timelines for different project phases is discussed upon. The project team needs to maintain a special tab on the constraints of the project

· Inventory planning: As Amazon was not into air cargo operations, it needs to comprehensively build up its inventory for facilitating the operations. A comprehensive inventory analysis and supplier research must be conducted so as to procure raw materials from high quality based suppliers. Based on the inventory requirement of business, the procurement plan must be finalized and suppliers and third party vendors must be selected

· Air cargo facility requirements: Amazon needs to be clear with the scale of the air cargo operations. Accordingly the facility requirements of air cargo will be decided upon. This is also based on the anticipated demand which the company is witnessing to meet in the coming future

· Environmental processing: As the overall world is going sustainable, it is essential that the carbon footprint of the company’s cargo operations is planned to be minimal. The company will also be required to adhere to the environmental regulations of the land.

· Air cargo facility design development: Finally the facility where the aircraft fleets facilitating the company’s cargo operations will be kept is designed. The scalability as well as scope of business will define the capacity of this facility

· Procurement of cargo fleets: Amazon may consider leasing the cargo fleets for its operations as the cargo operations plan is in its nascent stage. Leasing the cargo fleets will be cost effective in this scenario.

· Implementation of cargo operation plan: Once the overall facility and fleets are set up, the cargo operation plan can be put to implementation. The company can have a dedicated audit team so as to keep a check on the operations of the functionality and come up with interventions.