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R
Rolf
5 years

Amazon and Its Disruption of Logistics

When we think about innovation and technology in the e-commerce sector, it is virtually impossible to ignore Amazon's success. 

Amazon is always researching and innovating in ways to take customer experience to the next level, and it starts from the ground up. More specifically, since the ordering process passing all the way through the logistics and shipping. 

 

How is Amazon disrupting Logistics? 

 

1. Robotics

From inventory to delivery, the organization and process is aided by different types of robots. 

According to their Amazon Robotics website, they state that: 

Amazon Robotics has a dedicated focus on research and development to continuously explore new opportunities to extend its product lines into new areas that will redefine what ‘Now’ means and allow Amazon to continue to offer customer experiences that will delight and amaze.


2. Amazon Air 

To say they have come a long way from their bookselling business days is an understatement. 
A while back, rumors started about Amazon introducing drones for faster delivery. They have various images of prototypes on their website. 

But today, the eyes are more centered on Amazon's latest investment in aircraft fleet.
A lot of noise is being made about revolutionizing shipping methods with Amazon Air and competing with UPS and FedEx on logistics. 

According to UBS, Amazon “remains a meaningful long term risk” for FedEx and UPS as they work on building their package delivery operations. Considering that Amazon is the biggest customer UPS has, this new venture is something to watch closely. 

 

3. Personalization and Multiple Delivery Options

Amazon is nailing down exactly what their customers need, which is why they work hard at ensuring fast and reliable shipping methods. They have recently announced that you can now receive all of your packages at once, as part of their Shipment Zero initiative, aiming to reduce contamination and help with customer satisfaction. 


Where do you think Amazon is headed with logistics?