We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » The Amazon threat: part 2
Forward Thinking

The Amazon threat: part 2

February 26, 2020
Supply Chain Quarterly Staff
No Comments

Ravi Shanker, executive director at Morgan Stanley, came to the Retail Industry Leaders Association (RILA) LINK2020 supply chain conference to warn attendees about Amazon.

"Now before you say, 'Ravi, welcome to 1995,' let me clarify," quipped Shanker. "I am not talking about the e-commerce threat, I am talking about the logistics threat."

Since 2015, Amazon has been very thoughtfully building out an end-to-end logistics network, focusing on densely populated urban ZIP codes while using partners such as the U.S. Postal Service to handle delivery in rural areas.

According to Shanker, in 2019 Amazon moved half of its packages—2.5 billion boxes—in house. "[Amazon Logistics] will be larger than all FedEx by this year and UPS by 2022," he predicted.

Furthermore, according to Shanker, Amazon was able to accomplish this feat using a fleet a fraction of the size of the other companies'. Nor has the company finished investing in logistics. Shanker says Amazon plans to quadruple the size of its fleet in the next two to three years. With this type of scale, Shanker predicts that Amazon will be able to provide one-day delivery anywhere in the U.S. for under $5 per box.

Shanker believes that one of the reasons Amazon is building out this vast logistics network is that it plans to take a page from Amazon Web Services' playbook and provide logistics services.

"How are you going to compete on a cost basis?" Shanker asked attendees. "The last thing  you want to do is pay Amazon to use unused space on their truck."

  • Related Articles

    Study: Amazon's FBA Onsite program poses a threat to 3PLs

    Nike, Amazon, and IBM place the customer at the center of the supply chain

    Retail imports rising under threat of higher tariffs, report says

Recent Articles by Supply Chain Quarterly Staff

Kearney launches “supply chain institute” as more companies seek resilience plans

Trucking industry lobbies for leverage in transition to zero emissions

Safety will be top of mind on National Forklift Safety Day 2023

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: most Americans unaware that truckers face shortage of parking spaces

  • Best practices in logistics sustainability

  • Supply chain executives not yet seeing expected results from technology investments

  • Postal Service plans to seize items mailed with fake stamps

  • Inflation drops again as interest rate hikes hit home, NRF says

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing