Proposal For Buying A Shipping Company By Amazon To Solve Shipping Issues – Research Study

Background

In this study, the research is carried out to find and learn about a problem that is associated with one of the most renowned e-commerce based organization named Amazon. Amazon is an online store that comprises of the goods and items to be delivered throughout the world. Amazon additionally develops Kindle, which is accessible as a digital book reader and additionally a tablet computer. Amazon Web Services is a supplier of services in cloud computing. In this paper, the discussions are carried out based on the particular shipping problem of Amazon by defining the problem and developing a proposal for buying a shipping company. The proposal is prepared in the paper considering bid/no bid analysis and the resources that are required for execution of the project are provided in a resource matrix. The identifiable risks have also been reviewed in context to the proposal of buying a shipping company by Amazon to resolve the problem of shipping as it would change return on investment drastically.

The major problem being faced by the organization is shipping due to which the customers are losing reliance on Amazon. The organization competes with different companies existing in the same business industry so it is becoming difficult for Amazon to cope up with the competition due to the issues of shipping items. The e-commerce industry is growing at a rapid rate and also to win the market in this era of competition, the organization needs to take proper strategies that are costly (Kristensen et al., 2017). This is because the strategy may require a great deal of investment for warehouses, transportation gear as well as resources and so on. The capital expense being spent by Amazon does not includes the defined investments and it is not a business that will have expenditure for these areas. The buying of a shipping company by Amazon will help to resolve the problem of shipping and it would drastically change the return on investment.

This Request for Proposals (“RFP”) is being issued by Amazon in its ability as an overall eminent web based business for securing a delivery organization with the goal that will settle the transportation issues of the association. The motivation behind the notice is requesting proposals from Shipping Contractors to make an official list of bidders. The list of bidders might be refreshed every now and then and will be utilized to request fixed offers with the end goal of transportation products of Amazon to the clients so they can depend more on their administrations.

Major Problem

Nothing in this RFP should be interpreted to make any legitimate commitment with respect to Amazon or any other respondents.  Amazon spares the benefit, in its sole carefulness, to reexamine, suspend, end, or reissue this RFP in whole or to some degree, at any stage. In no event may Amazon be in danger to respondents for any cost or damages caused in regards to the RFP technique, including however not limited to, all costs of setting up a response to this RFP or some different costs realized in reliance on this RFP. No respondent ought to be fit the bill for repayment from Amazon for any costs, expenses or costs related to this RFP (Chan, 2015). All supporting documentation submitted in light of this RFP will transform into the property of the Amazon. Respondents may in like manner pull back their eagerness for the RFP, in creating, whenever as more information winds up perceptibly known.

Any agreement granted in accordance with this RFP sales should be for an agreement period up to year and a half, with the likelihood of an expansion. The agreement will be made on the premise of a proposition for transportation of $180,000.00 worth items. Extra spaces will be granted at the set up unit cost up to a maximum breaking point of $200,000.00. Contingent upon contractual worker execution, the agreement will be changed to another maximum point of confinement when as far as possible is come to.

Under the Legislative necessities in client benefit, Amazon have built up the Stabilization Program to settle the fulfillment of clients whose suitability is adversely influenced by things that have been dispossessed upon and relinquished (Kulak & Li, 2017). The modification program of Amazon offers endowments to states, neighborhood governments, philanthropies and a consortium of open and also private magnanimous substances on an engaged commence.

Respondents are emphatically urged to peruse these directions before presenting their reaction to this RFP. All SP reserves must be committed on particular qualified exercises no later than 12 August 2017 and half of SP stores must be spent no later than 25 August 2017.

Amazon is keen on encouraging the procurement of delivery things through the expense dispossession process with the end goal of conveying items. Amid the program time frame, which closes 30 August 2017, Amazon foresees the conveying of things to clients. Further, Amazon expects various demands inside a short time allotment.

Proposal for Buying a Shipping Company

This project will conform to all codes, gauges, directions, and laborers’ wellbeing decides that are managed by government organizations, state offices and some other nearby controls and in addition benchmarks that may apply.

Bid Factor	Positive	Neutral	Negative
	10	9	8	7	6	5	4	3	2	1	0
Scope matches with service offerings by the company	High	Average	Low
Customer experience	Various projects or at least some related projects	Few projects or at least one project	None projects
Intelligence for marketing	Magnificent learning base of client, rivalry, and win criteria	Proper awareness	Request for surprise proposal
Information access	Providing full details	Partial details provided	There is no detail
Technology	Company being preferred	Supportable or emerging	Non-strategic, new or unknown technology

The Selection Committee will include Amazon staff who will audit capabilities as per the assessment criteria put forward in this and SP destinations and strategies. Proposition that are submitted auspicious and agree to the obligatory prerequisites of the RFP will be assessed as per the terms of the RFP (Chauhan, 2015). Any agreement coming about because of this RFP will not really be granted to the seller with the least cost. Rather, contract should be granted to seller whose proposition got the most focuses as per criteria put forward in RFP.

Reactions to this RFP are expected by 12:00 PM on August 15, 2017. Reactions to this RFP must be messaged to Zidane Endean at [email protected] Every Respondent is in charge of naming the outside of the settled envelope containing the suggestion response with the recommendation number, suggestion name, suggestion due date and time, and the organization’s name.

The below provided checklist have to be provided in response to the RFP:

• Letter of expressing interest
• Proof of insurance
• License or legal permissions
• Proof of financial stability
• Statement for conflict in interest
• Statement describing the company
• Capability of the company
• Proposal for pricing

Procurement manager / procurement team leader
Process type:	Open competitive
Name:	Scott Adams
Position/title:	Procurement lead
Signature:	Scott Adams	Date:

Project sponsor
Approval to:	Visit to the market and identifying the preferred supplier
Tender start:	15 August 2017
Contract start:	05 September 2017
Name:	Ascot Will
Position/title:	Marketing lead
Signature:	Ascot Will	Date:

Delegated financial authority holder
Total cost:	$2.6 Million GST excl.	Cost code: C102
Name:	Jeffrey Hadron
Position/title:	Financial Analyst
Signature:	Jeffrey Hadron	Date:

Subject matter expert
Name:	Wilmer Patrick
Position/title:	Technical writer
Signature:	Wilmer Patrick	Date:

Legal advisor
Contract type:	Service Agreement
Contract term:	[5 + 1] years
Name:	Stephen Roberts
Position/title:	Legal Administrator
Signature:	Stephen Roberts	Date:

With an end goal to control working costs, Amazon needs to have its own delivery organization in France, and a US shipping obtaining may take after. Amazon has concluding its procurement of a French delivery organization in a move to take more control over transportation costs, as indicated by the Seattle Times (Kaur & Wadera 2017). Amazon initially procured 25 percent of the organization, Colis Privé, in 2014, and is ready to wrap up the rest of the 75 percent throughout the following three months.

Transportation costs are a tremendous cost for Amazon. In 2013, the web based business monster charged clients a worldwide aggregate of $2.8 billion for conveyance, yet despite everything it lost $3.3 billion on delivery. That same year, a huge number of clients did not get their Christmas presents on schedule for the occasion, which constrained both Amazon and UPS to issue discounts on transportation charges.

Despite the fact that Amazon’s transportation and conveyance forms have expanded in effectiveness from that point forward, the organization’s delivery costs have expanded by around 30 percent each of the previous two years (Economics, 2016). Amazon’s turn to obtain a remote transportation organization might be an endeavor to both lower its transportation expenses and take firmer control of item conveyance.

Request for Proposals (RFP)

Amazon advertising methodology execution had a financial plan adding up to $3.3 billion, $2.4 billion, and $2.0 billion out of 2014, 2013, and 2012 individually.  

Amazon showcasing spending plan is spent for publicizing, deals advancement, occasions and encounters, advertising and direct promoting components of the showcasing mix. The organization additionally pays commission to members in its Associates program when their client referrals result in item deals (Rossman, 2016). Additionally, Amazon participates in helpful publicizing game plans with sure of its merchants, and other outsiders.

Timeframe for the project

WBS	Task Name	Duration	Start	Finish	Predecessors
0	Amazon’s Shipping Company Purchase	167 days	Thu 8/3/17	Fri 3/23/18
1	Planning stage	26 days	Thu 8/3/17	Thu 9/7/17
1.1	Requirement Analysis	10 days	Thu 8/3/17	Wed 8/16/17
1.2	Feasibility study	7 days	Thu 8/17/17	Fri 8/25/17	2
1.3	Review with stakeholders	5 days	Mon 8/28/17	Fri 9/1/17	3
1.4	Approval of requirements documentation	4 days	Mon 9/4/17	Thu 9/7/17	4
2	Design stage	52 days	Fri 9/8/17	Mon 11/20/17
2.1	Develop Request for Proposals	7 days	Fri 9/8/17	Mon 9/18/17	5,4
2.2	Proposal responses	15 days	Tue 9/19/17	Mon 10/9/17	7,3
2.3	Proposal evaluation	10 days	Tue 10/10/17	Mon 10/23/17	8
2.4	Review of proposal	5 days	Tue 10/24/17	Mon 10/30/17	9
2.5	Final selection of proposal	3 days	Tue 10/31/17	Thu 11/2/17	10
2.6	Cost ceiling established	12 days	Fri 11/3/17	Mon 11/20/17	11
3	Implementation stage	82 days	Tue 11/21/17	Wed 3/14/18
3.1	Procure required materials	10 days	Tue 11/21/17	Mon 12/4/17	12
3.2	Gather resources	15 days	Tue 12/5/17	Mon 12/25/17	1,14
3.3	Start contract	8 days	Tue 12/26/17	Thu 1/4/18	15
3.4	Review of contract	4 days	Fri 1/5/18	Wed 1/10/18	16
3.5	Develop governance policies	10 days	Thu 1/11/18	Wed 1/24/18	17
3.6	Review contract progress	20 days	Thu 1/25/18	Wed 2/21/18	18
3.7	Implement changes	15 days	Thu 2/22/18	Wed 3/14/18	19
4	Closure stage	7 days	Thu 3/15/18	Fri 3/23/18
4.1	Closeout documentation	4 days	Thu 3/15/18	Tue 3/20/18	20
4.2	Post project review	3 days	Wed 3/21/18	Fri 3/23/18	22

Task Name	Financial Analyst	Business Analyst	Marketing Manager	Project Manager	Procurement Lead
Amazon’s Shipping Company Purchase
Planning stage
Requirement Analysis	R	C	I	R	C
Feasibility study	C	I	R	A	I
Review with stakeholders	R	A	C	C	I
Approval of requirements documentation	C	A	R	I
Design stage
Develop Request for Proposals	A	C	I	I	R
Proposal responses	C	I	C	C	A
Proposal evaluation	A	R	I	A	R
Review of proposal	I	C	R	R	C
Final selection of proposal	R	A	A	R	I
Cost ceiling established	C	C	I	A	C
Implementation stage
Procure required materials	I	I	R	C	R
Gather resources	R	R	A	I	A
Start contract	C	C	C	I	I
Review of contract	A	A	I	C	C
Develop governance policies	R	I	R	A	C
Review contract progress	I	R	C	R	R
Implement changes	C	C	I	C	A
Closure stage
Closeout documentation	I	C	A	A	C
Post project review	C	R	R	A	I

R (Responsible): This means the person will be responsible for that particular activity.

A (Accountable): This means that the particular person has to carry out the activity.

C (Consulted): This means that the particular person has to be consulted before carrying out that activity.

I (Informed): This means that the particular person have to be informed prior to executing that activity.

WBS	Task Name	Cost
0	Amazon’s Shipping Company Purchase	$199,107.00
1	Planning stage	$16,308.00
1.1	Requirement Analysis	$1,522.00
1.2	Feasibility study	$3,266.00
1.3	Review with stakeholders	$3,625.00
1.4	Approval of requirements documentation	$7,895.00
2	Design stage	$39,344.00
2.1	Develop Request for Proposals	$12,005.00
2.2	Proposal responses	$2,365.00
2.3	Proposal evaluation	$4,521.00
2.4	Review of proposal	$9,875.00
2.5	Final selection of proposal	$3,624.00
2.6	Cost ceiling established	$6,954.00
3	Implementation stage	$141,253.00
3.1	Procure required materials	$12,566.00
3.2	Gather resources	$65,214.00
3.3	Start contract	$32,654.00
3.4	Review of contract	$9,654.00
3.5	Develop governance policies	$8,548.00
3.6	Review contract progress	$10,256.00
3.7	Implement changes	$2,361.00
4	Closure stage	$2,202.00
4.1	Closeout documentation	$1,202.00
4.2	Post project review	$1,000.00

The verification matrix that will be used as part of the evaluation are illustrated as below:

Evaluation options	Criteria
Fit for purpose	Ability to deliver	Value for money
Written offer and documents for tender	ü	ü	ü
Buyer clarifications of offer	ü	ü	ü
Checking of references	ü	ü	ü
Interview	ü	ü
Presentation	ü	ü
Audited accounts		ü
Checking of credit		ü
Checking of company office		ü
Acceptance of conditions for proposed contract		ü
Checking for security and police		ü

There are various conditions in which Amazon will contract with another get-together including organization contracts, bargains agreements, leases and union understandings. An agreement is an understanding that is enforceable at law (Delaney, 2016). It is the fundamental gadget through which an affiliation speak to associations and appreciation with the other party. There are 5 segments of an agreement, all of which must exist all together for the agreement to be lawfully official on the gatherings.

Legal Capacity: The social occasions to the agreement must have the honest to goodness capacity to go into an understanding. Authentic point of confinement suggests that the social occasions are of legitimate age and are prepared. It is like manner infers that the social occasion is a legitimate substance. Individuals denoting the agreement must have the master to attach the genuine substance to the understanding.

Offer and Acceptance: There must be a genuine objective to go into the comprehension from all social events (Kaur, 2017). Cases of weight or threatening can be grounds to render the understanding void.

Thought: To be legitimately enforceable something of huge worth must be given by one assembling as a final product of the certification of action, or oversight of action by the other party. Most as a rule the idea shows up as money, yet it could be something one of a kind of noteworthy worth.

Selection Criteria

Lawful Purpose: The motivation behind the agreement must be for lawful attempts (Tan, Ho & Tan, 2015).

Conditions: The agreement must indicate the terms that will represent the understanding.

Contracting can possibly make many dangers. Care in dealing with these dangers can shield the association from misfortune. It is proposed that the Amazon have a created procedure regarding chance organization in contracts (Resca & Spagnoletti, 2014). This technique should address far reaching danger issues related to all understandings including:

• All agreements must be composed of requirements
• Designated expert levels have been arranged and signing contracts
• It is required that all agreements have to be investigated for hazard administration
• Requirement that any repayments allowed by the Organization are endorsed in accordance with the prerequisites of the Financial Administration Act
• Designated central limit locales, including who can get the opportunity to secure contracts and technique to get copies;
• Requirement that present postings of all agreements be kept up (Al Sayyed, 2016);
• Schedule portraying the amount of the time contracts should be investigated for both execution and risk organization issues;
• Archiving systems for ended contracts, including to what degree they will be held.

Anyone overseeing contracts must know whether they have the master to orchestrate and consent to the arrangement and, in case they do not, who does. The delegates of the affiliation must appreciate the responsibilities under the agreement and the threats related with those duties (Shaw & Hamilton, 2016). Agents accountable for agreement exchange should get rule or get ready on the most capable technique to satisfactorily review an understanding.

With a specific end goal to encourage predictable and careful contract audit rehearses it is suggested that Amazon builds up an apparatus, for example, an agenda keeping in mind the end goal to guarantee the nature of the survey procedure. All agreements must be investigated irregularly to choose whether changes are required, or paying little attention to the likelihood that the understanding should be continued (Bulov, Fedorov & Kurenkova, 2014). Examinations for contract continuation fuse the changing needs of the affiliation, new bearings or institution and execution appraisal of the contracted party.

Expecting contractual workers to demonstrate they convey adequate protection to cover the exposures intrinsic in their administrations gives affirmation the temporary worker has the money related ability to repay and hold the association safe. There is nobody measure fits-all protection prerequisite (Dollar, 2015). The sorts and measures of protection ought to be altered pertinent to a particular contract. Consider the exercises the contractual worker will perform to convey the merchandise or benefits, and the dangers emerging from those exercises.

Restriction of obligation provisions are progressively depended upon by specialist organizations to limit the hazard exposures of contracting parties. An impediment of obligation, not at all like a waiver, does not completely discharge the other party from risk (Chaudhary & Kumar, 2016). Rather, it constrains how much one gathering can be considered dependable by topping, or restricting the measure of harms the association can recover from the supplier for misfortune emerging out of the agreement. A confinement of risk condition might be drafted so it allocates the potential obligation between the gatherings, or the statement may constrain the dollar sum for which the other party can be held at risk (Lam, 2014). As often as possible, an agreement will try to confine risk to a sum no more noteworthy than the measure of expenses paid or payable under the agreement. In actuality, the measure of charges paid or payable makes little difference to the level of hazard in the agreement. It is never satisfactory to confine obligation for death, substantial damage, break of security or classification or encroachment of licensed innovation.

Checklist

A contractual worker ought to repay for the extent of administrations they are paid to give without strange confinements (Hopkin, 2017). Preceding consenting to acknowledge constraints, association needs to consider what could possibly turn out badly because of the administrations, that it is so liable to happen, and on the off chance that it occurs, what is the effect to the association (Pritchard & PMP, 2014). Besides that the confinements asked for are sensible in light of the potential effects to the association they might be acknowledged. If not, further arrangement is required.

Risk	Likelihood	Consequence	Rating	Mitigation action	Responsible
Understatement of the need	Unlikely	Likely	Low	Analysis need to be accurate	Business Analyst
Overstatement of the need	Possible	Moderate	Medium	Use functional and performance requirements	Business Analyst
Insufficient funding	Low	High	High	Obtain appropriate approvals before undertaking process	Financial Analyst
Impractical timeframe	Almost certain	Extreme	Extreme	Improve forecasting, planning and consultation with users	Project Manager

Risk	Likelihood	Consequence	Rating	Mitigation action	Responsible
Inadequate statement of requirements	Unlikely	Likely	Low	Use an Expression of Interest or Request for Information to clarify requirements	Business Analyst
Failure to identify potential sources	Possible	Moderate	Medium	Improve procurement planning processes	Procurement Lead
Selecting inappropriate method	Low	High	High	Improve implementation of procurement policies, guidelines and practices	Project Manager
Breaches of security	Almost certain	Extreme	Extreme	Maintain, audit and review security procedures	Business Analyst

Conclusion

From the study, it has been analyzed that the buying of a shipping company will help to resolve the problems of Amazon as well as increasing their profitability. However, in context to the proposal or contract various factors have to be taken into consideration such as procurement and risk management to ensure their success. The buying of the shipping company will increase their profit margin by reducing the expenses associated with transportation. The risk management plays an important role in the entire process of buying the shipping company and giving contract for delivering of the products to customers. Hence, there is a requirement for proper review and evaluation of the risks associated with procurement as well as delivering the contract. The procurement management plan being developed has been provided with a checklist to ensure successful acquisition of resources required for the project. In the risk management plan, the essential points have been discussed that the organization must consider before execution of the contract with a shipping company.  

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