Amazon has recently exclaimed that it will be sending out its own fleet of vans to deliver its packages to US customers’ doors, this is in its attempt to gain an even bigger control of its massive logistics network. They believe that this move is going to be beneficial for growth.
The company is encouraging all individuals with businesses to begin using Amazon fleets, which will allow companies to gain offers on their uniforms, fuel and insurance covers and will keep start-up costs at a low of $10,000 which could benefit many bigger businesses. With up to fleets of 40 vehicles, business owners could be making up to $300,000 in annual operating profit; a huge game-changer for many businesses, beginning in the US.
This new program will give Amazon additional powers and options which will include the “last mile” delivery of its parcels; often these are handled by FedEx or UPS and so it will put the power into Amazon’s hands. Amazon will also use individual drivers to deliver packages with their cars using a program they have built themselves, which will be named “Flex”.
Amazon has recently said that their efforts are meant to complement, rather than replace any services and will create further stronger relationships with carriers such as the postal service.
Is logistics really important for business growth and movement?
Logistics is an important part of the supply chain and will create the growth of a company and it’s something that you need to look at. There are certain applications and ways to enhance the logistics industry and these can vary. Blockchain can be effective as it allows a business to make transactions from individual to individual without the involvement of any third party and that is one way how blockchain can help the logistics industry.
It controls the effective forward and reverses flow of all goods and the services’ origin to its subsequent recipient. This means that logistics has an impact on the shipment of goods as well as finance of the company and how quickly the consumer can receive the goods. This can add a competitive edge to any business.
Logistics in business will create and increase the value businesses offer by improving merchandise and this can be completed in small businesses with fewer finance options. It will ensure the availability of products also which will provide further business value and allow a business to work on improving their own logistic activities or rely on any industry professionals to grow.
New technologies in logistics will naturally play an important role in business logistics for the future and we will see new software tools that will provide managers with better ways to analyze their performances and the networks. The demand for speed will always prevail and most naturally will result in companies taking inventory out of their systems. The technology which provides much of the ability to meet the demands for speed will improve and ultimately the new goals for the years ahead will be set and we will see an even bigger growth within business logistics.