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Lean Six Sigma in E-Commerce: Successes of Amazon vs. Failures of Home Depot Essay

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Keys to a Successful LSS implementation

Organizations constantly seek ways to enhance their operations for efficient delivery of products or services. Lean Six Sigma (LSS) is a distinctive approach that focuses on process improvement without compromising quality (Alnadi & McLaughlin, 2021).

In the current digital age, e-commerce and online retailing form the core of many organizations, especially after the COVID-19 pandemic. Amazon is the most recognizable e-commerce company that has succeeded through using LSS. The company’s policy requires all employees to be trained on LSS, given that they must interact daily with a blend of the virtual world and the real world using robust systems and algorithms grounded on powerful software (Alnadi & McLaughlin, 2021).

For over two decades, the company has kept improving on handling defects, returns, and fast deliveries by launching services such as the Amazon Way, Amazon Web Services (AWS), Amazon Prime, and Prime Now, among many others. The company is a contemporary example of LSS aimed at operational efficiency, reducing costs, and fast delivery through which it has maintained business competitiveness.

What Not to Do When Implementing LSS

On the contrary, many companies do not benefit from implementing LSS due to numerous challenges. For instance, Home Depot suffered huge losses despite the CEO’s determination to enforce LSS. As one of the leading retailers in the United States, the company failed to adopt a behavioral change in favor of the LSS methodology. The employees reported reduced motivation to work, and the CEO, Robert Nardelli, did not do enough to develop the appropriate culture that would be embraced by the workforce and customers (‌Sunder & Ganesh, 2021). As a result, the company’s share price plunged due to reduced investor confidence, causing him to lose his job.

Correcting The LSS Failure with the Keys to Success

The examples of Amazon and Home Depot certify that LSS can work or fail depending on its enactment. Sunder and Ganesh (2021) state that failure can be corrected by the institution’s appropriate teams and by providing the resources to carry out LSS successfully. The management must support the teams in choosing LSS projects that are aligned with the organization’s objectives. The assigned projects should not satisfy a few individuals’ desires.

References

Alnadi, M., & McLaughlin, P. (2021). . International Journal of Lean Six Sigma. Web.

‌Sunder M, V., & Ganesh, L. S. (2021). . Technovation, 104. Web.

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"Lean Six Sigma in E-Commerce: Successes of Amazon vs. Failures of Home Depot." IvyPanda, 30 Oct. 2024, ivypanda.com/essays/lean-six-sigma-in-e-commerce-successes-of-amazon-vs-failures-of-home-depot/.

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IvyPanda. 2024. "Lean Six Sigma in E-Commerce: Successes of Amazon vs. Failures of Home Depot." October 30, 2024. https://ivypanda.com/essays/lean-six-sigma-in-e-commerce-successes-of-amazon-vs-failures-of-home-depot/.

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IvyPanda. "Lean Six Sigma in E-Commerce: Successes of Amazon vs. Failures of Home Depot." October 30, 2024. https://ivypanda.com/essays/lean-six-sigma-in-e-commerce-successes-of-amazon-vs-failures-of-home-depot/.

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