Running Head: LOGISTICS 1 Running Head: LOGISTICS 10 Logistics and supply chain context Stanley Thompson Jr. DB 8035 3 May 2020 INTRODUCTION Comment by TJS: Additional specifics on the NAFTA tribunal process, outsourcing strategy, and global supply chain would have been nice to see. Firms understand the reputational risk that the environment could cost their suppliers as a result of the launch of the green supply chain management initiatives. Firms have then opted to collaborate and work jointly with their suppliers to facilitate activities within the business and ensure that they are environmentally friendly. Firms can hence engage with their clients one of the following two ways. One option would be to monitor their environmental performance or engaging with suppliers and collaborating and joining forces to ensure there are pro-environmental processes and practices are taken up (“Collaborate with suppliers to ensure green practices in the supply chain”, 2017). Therefore, this paper seeks to discuss trade agreements that affect Amazon and their consequences, ways in which Amazon applies the NAFTA tribunal process to navigate laws that affect the firm's dealings, some of the global collaborations strategies that Amazon may have implemented and their risk factors and finally Amazon's global supply chain strategy. Comment by TJS: Note that paragraphs need to be left justified Comment by TJS: This is a key point Comment by TJS: Anthropomorphisms should not be utilized. An anthropomorphism is the attribution of human characteristics or behavior to a good, animal, or object. REGIONAL TRADE AGREEMENT Regional and other trade agreements that affect Amazon Trade agreements are aimed at creating opportunities for firms to help grow the economy. Rules and policies are laid down for firms aiming to carry out businesses in the markets around the word and barriers are reduced to influence exports while protecting the interests of the involved firms. There are a few trade agreements that affect firms in the US which include the World Trade Organization agreements, the Free Trade Agreements, and the Bilateral Investment Treaties. The government of the US has entered into treaties and agreements to facilitates trading activities across its borders. Trade agreements regulate taxes, tariffs, and duties imposed on exports and imports (“Trade agreements”, (n.d.)). Comment by TJS: This is certainly the intention Comment by TJS: There are hundreds of trade agreements out there Trade agreements may not always favor firms by providing reduced rates on tax and other forms of duties. Firms at times depend on duties and protective tariffs to shield themselves from the competition by other firms. This makes it rather difficult to conduct business hence end up going bankrupt and subsequently out of business. Trade agreements are known to trigger competing agreements with other nations to do business with. This has often attributed to undo the few advantag.

1. Running Head: LOGISTICS 1
Running Head: LOGISTICS 10
Logistics and supply chain context
Stanley Thompson Jr.
DB 8035
3 May 2020
INTRODUCTION Comment by TJS: Additional specifics on
the NAFTA tribunal process, outsourcing strategy, and global
supply chain would have been nice to see.
Firms understand the reputational risk that the environment
could cost their suppliers as a result of the launch of the green
supply chain management initiatives. Firms have then opted to
collaborate and work jointly with their suppliers to facilitate
activities within the business and ensure that they are
environmentally friendly. Firms can hence engage with their
clients one of the following two ways. One option would be to
monitor their environmental performance or engaging with
suppliers and collaborating and joining forces to ensure there
are pro-environmental processes and practices are taken up
(“Collaborate with suppliers to ensure green practices in the
supply chain”, 2017). Therefore, this paper seeks to discuss
trade agreements that affect Amazon and their consequences,
ways in which Amazon applies the NAFTA tribunal process to
navigate laws that affect the firm's dealings, some of the global
collaborations strategies that Amazon may have implemented
and their risk factors and finally Amazon's global supply chain
strategy. Comment by TJS: Note that paragraphs need to be left
justified Comment by TJS: This is a key point Comment by

2. TJS: Anthropomorphisms should not be utilized. An
anthropomorphism is the attribution of human characteristics or
behavior to a good, animal, or object.
REGIONAL TRADE AGREEMENT
Regional and other trade agreements that affect Amazon
Trade agreements are aimed at creating opportunities for
firms to help grow the economy. Rules and policies are laid
down for firms aiming to carry out businesses in the markets
around the word and barriers are reduced to influence exports
while protecting the interests of the involved firms. There are a
few trade agreements that affect firms in the US which include
the World Trade Organization agreements, the Free Trade
Agreements, and the Bilateral Investment Treaties. The
government of the US has entered into treaties and agreements
to facilitates trading activities across its borders. Trade
agreements regulate taxes, tariffs, and duties imposed on
exports and imports (“Trade agreements”, (n.d.)). Comment by
TJS: This is certainly the intention Comment by TJS: There are
hundreds of trade agreements out there
Trade agreements may not always favor firms by providing
reduced rates on tax and other forms of duties. Firms at times
depend on duties and protective tariffs to shield themselves
from the competition by other firms. This makes it rather
difficult to conduct business hence end up going bankrupt and
subsequently out of business. Trade agreements are known to
trigger competing agreements with other nations to do business
with. This has often attributed to undo the few advantages that
trade agreements bring forth in an attempt to level the business
ground to make treading and business transactions less harsh
and more bearable (Scott & Schott, 2016). Comment by TJS:
This is an important point Comment by TJS: Correct. It is
a matter of perspective
Consequences of choosing the wrong characteristics when
classifying products for tariffs
When making agreements and signing treating that
influence trading activity, it is important to make sound

3. decisions during the negotiation process. In the past, there have
been horrifying results of trade agreements causing more harm
than good to firms and countries' economies. Firms and
governments need to have strong negotiation skills to make
better trade deals that equally and positively impact both parties
to the agreement. President Trump has put some effort into
renegotiating trade deals as he had promised to do. Better deals
were made with China who was America's source of automobile
imports. The US had the upper hand as the national security
tariffs on steel and aluminum. Due to the trade war with China,
a new deal was made between the United States, Mexico, and
Canada to replace the NAFTA agreement with USMCA (Scott &
Schott, 2016). Comment by TJS: This certainly can be the case
if things are not fully thought out
The North American Free Trade Agreement had several weak
points which led to huge losses and damages. Both the
American and Mexican labor forces were negatively impacted
by the North American Free Trade Agreement. Amazon as one
of the firms whose largest area of operation was in the US
suffered. Amazon is the leading online retailer in the US hence
items such as automobile spare parts are just some of the items
that are most purchased by Amazon's users. Firms shifted their
production and manufacturing activities to Mexico as there was
a cheaper source of labor as opposed to the United States. At
least 682,900 jobs were lost in the US as activities were shifted
down south (“Trade agreements”, (n.d.)). Comment by TJS:
Great point here Comment by TJS: Correct. This has been a
big area of contention
For products produced in Mexico was subjected to duties
and other forms of tax. This made the trade and business
environment quite harsh to deal with. In many cases, importing
countries would also impose additional tariffs on components
making it next to impossible to trade with other countries. The
price of commodities tends to become inflated causing firms to
spend more than they are ready to spend on purchases and
making little profit margins less than bearable to operate in.

4. costs incurred in operation tend to go above the roof making
business processes unsustainable for many firms (“Trade
agreements”, (n.d.)).
It is important to identify tariffs in trade agreements that could
influence the daily business activities. Working around trade
tariffs could be of great benefit to firms as negotiations can be
made to subsidize certain costs such as duty and tax expenses
incurred during exports and imports. Finding tariffs or
negotiating tariffs that could impact business activities is
considered as intelligent strategies on attempting to make a
breakthrough in a given market space as often there could be
better working conditions that could favor the daily business
dealing creating more profits easier and faster (Scott &
Schott, 2016). Comment by TJS: Great point here
Areas of uncertainties that can impact business strategies
At times, rules and regulations in treaties are quite unfair
to one party hence the oppressed party will often retaliate spike
a trade war. In this circumstance, it important that a tribunal
process is taken up to help solve the issue amicably. As the
most preferred method of recourse, it could be preferred that
both parties try to arbitrarily solve the issues at hand. This
could be done renegotiating the initial terms that may have been
harsh and tight to operate in. both parties can then air their
views and points of grievances to the other party for
reconsideration, renegotiation, and adjustment of terms. Both
parties have an understanding of what they want from the trade
agreements and how much they may be willing to give up
(Ikenson, 2019). Comment by TJS: Correct. Tit for tat
There may certain areas of the trade agreement that may need
adjustments of consideration. Parties may consider a slight
simplification of procedures that could then reduce costs
incurred to meet all compliance requirements for the benefit of
the environment. Complicated procedures are often unnecessary
as it only complicates issues for host countries to effectively
harness the nosiness gains from global supply chains. This
discourages both foreign and domestic investments. Standards

5. of compliance may need to be reconsidered and adjusted to be
made reasonable and archivable for firms seeking to conduct
businesses in a host country (“policy framework for investment
user's toolkit”, (n.d.)). Comment by TJS: Great point. At
times simplification is the key
Similarly, upon negotiations, transaction costs can be
sliced by a given percentage using more predictable and
transparent processes. Simplified clearance systems can be
implemented, and administrative requirements can be
harmonized. This is often done by the adoption of applicable
standards such as certification procedures, testing processes,
and uniform and impartial administrative border requirements.
This releases pressure on firms as they attempt to comply with
requirements, standards, and procedures associated with trade.
Custom procedures ought to be designed to provide
predictability, transparency, and simplicity. Impractical
regulations and requirements often compromise business
activities. Similarly, inefficiencies in administration procedures
hence creating unnecessary obstacles to firms who seek to do
business and carry out trade transactions within a host country.
This unnecessarily increases operational costs beyond a
sustainable level hence could possibly drive out businesses as
well as potential investors. (Ikenson, 2019) Comment by TJS:
Good discussion here
GLOBAL COLLABORATIONS
Amazon has greatly relied on outsourcing its inventory
management with more than 80% of its sales coming from third-
party sellers. Amazon's warehouses have been strategically
located and stocked. This makes it easier to transport and
deliver products to its customers. Using the push strategy,
Amazon forecasts the demand for certain items within a given
region while when products are from third-party sellers, it uses
the pull strategy. Similarly, Amazon had to acquire robotic
automated services for its daily business procedures. This
service was called the Kiva Systems which was later rebranded
as Amazon Robotics which provides robotic warehouse

6. solutions. Warehouse processes such as pick, drop, and
rearranging procedures are done without human supervision.
Amazon has hence been able to complete warehouse activities
quicker than before and kept its overall cost per unit at a
minimum (Leblanc, 2019). Comment by TJS: Correct. Many
do not realize this Comment by TJS: Fragments need to be
removed . Every sentence must have at least one main clause. A
main clause contains an independent subject and verb and
expresses a complete thought. Comment by TJS: It did require a
hefty investment though
GLOBAL SUPPLY CHAIN STRATEGY
Most deliveries are still being done by Amazon's branded
vehicles. Amazon has been described as the only firm in the
United States of America to have been able to leverage its
position to the point of partnering with corporates such as the
United States Postal Services and FedEx to deliver its products
to its customers. Most of its customers are quite impressed by
the prompt and timely deliveries. Amazon has opted for delivery
firms as they have a better understanding of route networks that
are proficient and adequate for delivery purposes. Amazon can
hence focus on other logistical challenges as deliveries have
been handled by more professional and experienced couriers
that they are. Comment by TJS: I agree with this statement
Amazon has as well partially implemented a drone-based
system that delivers products to the firm’s clients. The service
is called Amazon Prime Air where it delivers products weighing
under five pounds to locations within a ten-mile radius.
Delivery times have been cut to thirty minutes or even less.
This has greatly increased people’s loyalty to the retailing
online firm as they now have the capacity to push more products
out of their warehouses and make delivery drops at an increased
rate. This strategy was however faced with many hurdles along
the way as the firm still sought to realize the dream. The drones
are yet to be fully commissioned to handle delivery drops and
designed to self-destruct during flight in the event of any
technical hitches to reduce any resultant damages and harm to

7. people. Comment by TJS: Correct. Delivery will continue to
be an area of focus
GLOBAL RISK FACTORS
There are certain risk factors that are common to firms that take
up Green Supply Chain Management as such firms are heavily
dependent on data. With a lot of customer data, cyber-attacks
tend to be quite common in a world that has been connected by
the internet. This could hence cost the firm a great deal in
damages and reputation to its customers. Similarly, war and
conflict have a direct impact on supply chains hence production
can be stopped as there is limited access to materials. Country
disputes might as well erupt leading boycotts and economic
turmoil that could greatly impact supply processes. Supply
chains have a direct relation to labor and related laws as they
are the heart of supply chains. Any issues related to labor might
bring about a huge ripple effect compromising logistics and
other areas of supply (Ortegoli, & Ghadim, 2016). Comment by
TJS: Great point here
CONCLUSION
It is of great importance that Amazon ought to closely
scrutinize any agreements and treaties that impact its business
strategy. Tariffs may at times be unfavorable for any business
ventures to take place to their unpractically or at times is often
unsupportive of the firm's business strategy. Firms should
invest in economies that have bearable policies to facilitate
business development and ventures as a key requirement to the
success and a guarantee of the future for the entity
(“Collaborate with suppliers to ensure green practices in the
supply chain”,2017).
References
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with-suppliers-to-ensure-green-practices-in-the-supply-chain
Ikenson, D. J. (2019, April 10). USMCA: A marginal NAFTA
upgrade at a high cost. Cato
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