BLOG: LOGISTICS, E-COMMERCE, AMAZON, LAST MILE, TRANSPORTATION. 1 OF A SERIES

With making supply chain management strategic and weaponized, the changes in supply chains are moving into logistics.  Much of what is happening involves Amazon.  For better control and improved end-to-end supply chain velocity, they are taking more involvement in their logistics.  More exactly, they are being parts of their logistics in-house--reverse outsourcing.

Their actions have included forwarding from China, leasing airplanes, having trucks, and starting actions with customer deliveries.  The latter is often referred to as the Last Mile.

Logistics service providers are concerned that Amazon may become a logistics service competitor.  This has value potential from a supply chain, not a logistics, view.  Being a "shipper", Amazon can sell that they better understand a customer's needs than does a logistics firm.  

There is an underlying issue with the ongoing disruption in the various logistics segments and the need to transform.  Do some providers no longer fit the needs of customers.  Do they need new business models.  And with that--are they resistant to change?

E-commerce and retail competitors have concerns.  What Amazon is doing is taking control of the logistics of its supply chain and improving the velocity--so important for the customer order delivery velocity.

As it stands, many e-commerce firms are concerned about the cost of Last Mile deliveries.  They are used to moving trailer loads of products to stores, not moving individual packages to individual customers.  Some of the concern is justified and some is misdirection which keeps these companies from making needed changes to their supply chains in order to compete in this new selling reality.

Amazon recently announced with grocery delivery.  They are making grocery delivery free--that Last Mile.  This compares to grocers that use outside logistics firms and some customers pay a fee.  It also contrasts with stores that have customer pickup their orders--click and collect--a less customer convenient option.   https://af.reuters.com/article/commoditiesNews/idAFL3N27D3TM?mod=djemlogistics_h

I will provide other observations on what is happening and will happen in logistics in country after country to support what is happening in the New Supply Chain. 

For more on the new logistics and its driver, the new supply chain and more read the white papers: www.ltdmgmt.com