RKP Paper

Orange group: Rint, Kazuki, Winnie

The purpose of this memo is to provide the best solution for Amazon to solve the problem that a lot of the packages cannot be delivered as scheduled during Christmas, which was caused by reasons like bad weather and short holiday shopping time. Various factors have caused package shipping problems, and the solutions we provide will solve the problems and regain the trust of the costumers. The possible solution that we came up with, which are first, we can improve delivery efficiency by hiring part-time external carriers to relief holiday rush. Second, we can offer a discount to customers who place their orders and schedule delivery early prior to the holidays. This approach can reduce the risk that customers across the country order their products at the last minute which can lead to too many packages to be delivered on time. Third, we can coordinate with external carriers but develop and expand our own shipping department at the same time. The best solution is to start our own shipping department, but still coordinate with our current carriers in the early phase. Obviously, we will need to make investments into the shipping department, but we will have control over the delivery and in the long run, we will save a sizeable shipping cost and make returns on the development of the shipping department. In the first step, we will maintain the partnership with our current carrier because our shipping department is relatively small at the beginning and we can not make all the delivery on our own. We can start our own delivery in dense urban areas first, and utilize our carrier to distribute packages to suburb and rural areas. Eventually, we will be doing all the delivery on our own so that we can have total control over the delivery plan and status to avoid any possible crises. In the second step, we need to develop a system to make logistics more efficient. The first function of the system should be able to estimate the size of the package to maximize the loading of our shipments. It should also be able to determine the drivers’ delivery route and optimize the loading order of the package so the driver doesn’t need to spend a lot of time looking for the package in the back of their truck. With this system, we can manage the delivery more efficiently and decrease the waste of time. In the third step, we can conduct survey from the two steps mentioned above and make an expansion plan. We should invest and expand our shipping department in the most needed areas in order to deliver on time. We should also offer customers to pick

Orange group: Rint, Kazuki, Winnie

up their package at our ware house, especially in the areas where we don’t have enough resource to make our own delivery. By doing so, we save a lot of time from delivering those packages and lower the risk of not deliver packages on time.