Amazon Vendor Flex Model: A Business Strategic Alliance for Sustainable Development

Global economic development cannot be dissociated from global warming and sustainability concerns. The existence of supranational institutions such as the United Nations favour the process in the sense that they can share their vision, which is both global and inclusive. Nevertheless, the ultimate actions are undertaken by economic actors, such as companies and consumers. On the companies' side, sustainability issues have been identified on second, third and more upstream suppliers. The responsibility in dealing with sustainable issues of their suppliers can be attributed to the companies, so the role of multinational companies such as Amazon is clearly very relevant. They possess the financial and technological means to generate a positive impact on the sustainability of their suppliers. A possible way to handle it is by implementing strategic alliances between the company and its suppliers. This is the rationale under the Vendor Flex model of Amazon, in which we focus in this research. The Vendor Flex model is based on the use of Amazon's technology and labour to make a better use of supplier's assets, while providing a better service to Amazon's customers, especially in high demand seasons, such as Black Friday or Christmas. At the same time, mileage of merchandise transport is reduced, allowing Vendor Flex model to have a positive impact in sustainability. However, as any other strategic alliance, Vendor Flex has several issues in terms of governance, that are dealt with in this research.

Automated summary

Global economic development is closely linked to global warming and sustainability concerns. Supranational institutions like the United Nations play a role in sharing a global and inclusive vision. However, the responsibility for taking action lies with economic actors such as companies. Multinational companies like Amazon have the means to make a positive impact on the sustainability of their suppliers through strategic alliances. The Vendor Flex model implemented by Amazon is an example of such an alliance aimed at improving sustainability while providing better service to customers.