Application of Value Stream Mapping in E-Commerce: A Case Study on an Amazon Retailer

Yanfang Qin and Hongrui Liu
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Yanfang Qin: Department of Industrial and Systems Engineering, San José State University, San José, CA 95192, USA
Hongrui Liu: Department of Industrial and Systems Engineering, San José State University, San José, CA 95192, USA

Sustainability, 2022, vol. 14, issue 2, 1-16

Abstract: In recent years, the e-commerce market has grown significantly, and the online retail market has become very competitive. Online retailers strive to improve their supply chain operations to reduce costs and to improve customer satisfaction. Value stream mapping (VSM), a tool created by the lean production movement to identify and reduce errors, losses, and lead time and to improve value-added activities, has been proven to be effective in many manufacturing processes. In this study, we investigate the application of value stream mapping (VSM) in the supply chain of an e-commerce retailer on Amazon. By visualizing the entire supply chain with VSM, the waste that is produced during the delivery process from the retailer to the customer was identified. The five whys method was then applied to find the root cause of the waste. Furthermore, a scoring method was developed to evaluate and compare two different supply chain logistic models to identify a strategy for improvement. This study provides a systematic methodology to understand, evaluate, and improve the entire e-commerce supply chain process utilizing VSM. It was demonstrated that the methodology could improve supply chain management efficiency, customer satisfaction, and cost reduction.

Keywords: e-commerce supply chain; value stream mapping; customer satisfaction; cost reduction (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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