Amazon is everywhere these days: grocery, parcel, healthcare. Industry mainstays are shaking in their boots. Will these sectors be upturned in the way Amazon changed everything else it’s touched?
The shipping industry, in particular, was turned on its head. What started as an online shopping boom has quickly created new supply chain logistics challenges. Consumers now expect shipments of all kinds (not just e-commerce) to arrive fast and cheap, with complete end-to-end visibility. In our opinion, this has changed the industry for the better.
Here’s a breakdown of some of the upsides of the Amazon effect.
With the Amazon effect creating demand for more final-mile deliveries than ever before, consumers will continue to seek visibility in shipping. This will drive transparency throughout shipping logistics. To meet customer demands, shippers will need more information about where their products are. This, in turn, will drive efficiencies.
Consumers’ desire for quick shipping creates more shuffling of goods between points to get them closer to purchasers. Amazon’s logistics model calls for more short-haul trips, with more trucks traveling directly to purchasers’ homes rather than to distribution centers.
This means every aspect of the supply chain must tighten up. Shippers and carriers must streamline inventories, orders, the loading of trucks, and routes. Reviewing supply chains regularly to assess efficiencies will improve overall logistics.