How Amazon’s delivery logistics redefined retail supply chains

Raanan Cohen

Journal of Supply Chain Management, Logistics and Procurement, 2018, vol. 1, issue 1, 75-86

Abstract: Amazon is setting very high standards for the entire retail industry with the market-leading ecommerce innovations they are implementing across their delivery logistics infrastructure, as well as the technologies behind it. As customer spend rapidly shifted over the past decade towards online commerce and away from physical stores, customer expectations around convenience, choice and speed of delivery have also changed drastically. The boom of on-demand technologies such as real-time tracking, alongside the widespread adoption of smartphones, means that retailers across the world need to quickly adapt in order to stay relevant with their customers. The implications of this shift towards customer-centric deliveries affect the entire retail supply chain, which needs to be redesigned to ensure companies gain maximum operational efficiency while providing an exceptional customer experience. This new retail landscape is having a huge impact on both the micro and the macro level. On the one hand, retailers need to optimise their fleets, delivery partners, warehouses, stores and customer service. On the other hand, regulators need help creating cities that provide the optimal infrastructure to efficiently manage the flow of goods. The last mile in particular is becoming one of the toughest challenges for retailers to support, and they will need to embrace technology that helps them manage their operations while maintaining a healthy bottom line. It is not a simple task to reach all customers wherever they are, whenever they want — especially in countries or cities with low population density. However, as delivery companies, in-house fleets and crowdsourced resources become more aware of these challenges, we will see the emergence of new models that efficiently utilise multiple tools, technologies and resources. The entire industry is working towards achieving flawless orchestration of a fully-transparent, fully-optimised supply chain, which is driven as much by cost-efficiency as it is by providing end-customers with exceptional brand experiences.

Keywords: last mile delivery; 3PL delivery; 3PL logistics; retail delivery system; retail logistics; Amazon (search for similar items in EconPapers)
JEL-codes: L23 M11 (search for similar items in EconPapers)
Date: 2018
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