How Amazon Inc is expanding in logistics sector
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How Amazon Inc is expanding in logistics sector
Amazon, the world’s largest online retailer, has been expanding its logistics sector to improve its supply chain management and delivery services. According to Forbes1, Amazon has revealed an 80% increase in its capital investments earmarked for logistics-related operations, both in its fleets of vans, planes and trucks, as well as new warehouses, with the aim of becoming its own end-to-end logistics operator. The company is focused on adding capacity to meet the current high customer demand and is committed to expanding its supply chain capacity.
Amazon has been expanding its network of delivery providers through the Amazon Delivery Service Partner Program. This program allows entrepreneurs to start their own delivery business with Amazon’s support. With low startup costs, built-in demand, and access to Amazon’s technology and logistics experience, this is an opportunity to build and grow a successful parcel delivery business. Amazon has also invested $1 billion in companies developing technologies in logistics, supply chain management and safety.
Amazon has been expanding its private fleet of long haul and last mile delivery trucks to reduce or eliminate its reliance on UPS, FedEx and the USPS to make deliveries. The company has grown its delivery fleet to include a total of 80 planes and 50,000 delivery trucks. It has also expanded its warehouse space by more than 50%.
However, Amazon still faces some major challenges such as high worker turnover rates, capacity issues, unknowns surrounding COVID-19, managing inventory across multiple websites, adhering to Amazon’s strict customer service rules and handling fulfillment and returns to Amazon’s high standards. Despite these challenges, Amazon’s investment in logistics-related operations is expected to reshape the future of the industry.
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