Tag Archive: FedEx

Will Amazon Pass UPS & FedEx?

January 26th, 2020

According to a CNBC article, Amazon is already delivering half of its packages. It appears that Amazon is on target to pass by FedEx and UPS. They have had distinctly different strategies. FedEx curtailed its contract with Amazon in early 2019, and Amazon just retaliated by not allowing 3rd party sellers to ship via FedEx. On the other hand, UPS is doubled down with Amazon. Which will turn out to be better in the long run? And, as we know, USPS has been delivering packages for Amazon behind-the-scenes. Could they come out on top?

Or will Amazon just crush everyone? In recently touring the Ontario airport (the powerhouse in package shipping), it is clear Amazon has a long way to go to catch up in air freight but they are also known to speed by competitors. Amazon is slowly making inroads to ocean shipping as well. No matter who you think might win this race, if you ship or receive anything, you should pay attention!

What Should We Consider and/or What Impacts Could Arise?
Simply think about Sears. They were Amazon prior to Amazon entering the scene. Unfortunately, they didn’t keep up with changes occurring, and they are largely out of business. That annoying but not worrisome competitor might just speed by you if you aren’t staying relevant!

Additionally, from a supply chain and logistics point-of-view, there are substantial impacts. With the sheer relevance of the last mile, transportation infrastructure, customer perceptions, technology advancements and much more are becoming relevant. Undoubtedly, no matter your industry, it will be impacted since everyone relates to logistics. Not only logistics, but many industries relate to oil and gas prices or would be impacted by delays in materials etc. The impacts are widespread and substantial. Have you thought through your strategy and positioning based on these factors?

At a minimum, continually re-evaluate your supply chain road map and think through related impacts. These topics certainly relate to our new LMA-i, LMA-Intelligence series including the Amazon Effect, the Resilient Supply Chain and Future-Proofing and contact us if you’d like an assessment path-forward plan to accelerate your bottom line and customer performance.



What’s New & Hot in Transportation?

October 31st, 2017

 

 

 

What’s New & Hot in Transportation?

I was a panelist at Mobility 21‘s (the Southern California Transportation Coalition) session, “Speed to Delivery: Goods Movement’s High-Tech Future”.  We had a fascinating discussion with a panel of experts from Walmart, Caltrans, the California Transportation Commission and Paul Granillo, Kome Ajise, Elizabeth Fretheim, FraInman.  One area with 100% agreement is that the Amazon Effect (inclusive of rapid deliveries, small shipments and easy returns) is the expectation.

For example, according to Fran, e-commerce is rising, master plan business parks are growing, omni-channel is taking over, the need for flexibility is at an all-time high and much more.  We live in a complex environment and transportation is gaining a larger role.  How will we deliver significantly more to Amazon-type customers?  How will we address the challenges of the last mile?  And certainly, in California specifically, how will we do all this with the traffic congestion? And with dramatically less emissions and with greater sustainability?  Will Amazon start competing with UPS and FedEx and what sort of impact will it have?  Let alone autonomous vehicles….

What Should We Consider and/or What Impacts Could Arise?

Who knew transportation could be so complex?  As much as goes into transportation, consumers are trained to think of it as “free” (think Amazon Prime) and quick.  That certainly provides two conflicting forces!

A good start is to absorb the vast topic transportation has become.  Are you or someone in your company thinking about transportation from a strategic viewpoint?  It doesn’t matter whether you have zero e-commerce and transportation doesn’t seem to be an issue.  Your transportation assets and shared infrastructure will likely be impacted by the vast amount of change taking place.  What might occur?  Will UPS and FedEx respond to Amazon’s moves?  Will truck capacity increase with autonomous vehicles?  Will your loads become more expensive because trucking companies have to invest in new infrastructure or will they becomes less expensive since an autonomous driver does not have to sleep and rest after 11 hours?  And if you own your own fleet, there are many rules and regulations to consider.

Join us at APICS Inland Empire’s executive panel and networking symposium to learn about the latest transportation trends, technologies and more.

 

 

 

 

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