Monthly Archives: March 2021

238. Amazon’s Current “Logistics 4.0” Going to What “5.0”?

AmazonBusiness, Index

Just-Out, Must-Read Book: “Behemoth: Amazon Rising” (By Robin Gaster) 

I touted this book to distribution channel brass in last week’s blog. This blog is the first of a few to riff on some of Gaster’s chapters. This week, his: “Chapter 4: Logistics as Leverage”

Logistics 1.0 to 5.0 in 27 Years

Gaster details how Amazon’s logistics evolved to ever-greater from a “1.0” garage, e-bookstore in ’95 to it’s present “4.0”. Then, from 4.0, he speculates on how known trends and experiments foretell “5.0” by 2023 and beyond.

Scanning news on Amazon is good. But, far better is to digest Gaster’s deep investigative work. Your concerns about and ideas for partnering and countering Amazon will leap.

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236. “Minnow Division” v Data-Free Beliefs

Cost-to-Serve Math, Index

The Opportunity/Problem:

Best, customer-profitability analytics provide many insights for distributors. A common opportunity is an accumulated sea of small, unprofitable accounts: Minnows!  Typical group stats: 50% of all accounts that yield only 5% of the gross profit dollars on 18 – 30% of all transactions. Their cost-to-serve expense dollars greatly exceed their margin dollars for a big, hidden loss.

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235. Embrace All-Win, High-Hourly Wages (like Costco)

AmazonBusiness, Index, Service Value Innovation Guidelines

In the News: “$15 Living Wage” v Amazon and Costco Strategies

The “$15-hour living wage” movement will continue. It will: buy votes; liquidate jobs; and boost McDonald’s prices more than the new, net wages. Although many voters are weak at system-thinking math, Amazon and Costco are not.

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