“The future is already here — it’s just not very evenly distributed.” – William Gibson
AMAZON’S LAST MILE, LOGISTICS NEWS
- (Oct. 10) “The USPS seeks a 12.3% price increase” on the 40% of AMZ’s packages that it delivers. AMZ suggests that the projected $1B cost increase won’t matter in 2019. (?)
- (10/17) Hiring “Seasonal Delivery Associates” (for $17.25/hour). Doesn’t this compete with AMZ’s new “Delivery Partners” (6/28)? The Partner start-ups will use the 20K (initially 4.5K) of leased Mercedes Sprinter Vans. Perhaps: a) shipments are growing faster than total delivery capacity. Or, b) AMZ believes it can innovate lower last-mile costs than the USPS, etc.
- (11/5/18) Free holiday shipping for all (matches Target’s promotion). AMZ will win any battle of fulfillment-cost attrition because: a) It has best customer clickstream advertising income and b) most efficient warehouse costs.
- Resellers in LA can now use “Shipping With Amazon” (2/8/18) to ship goods to AMZ Fulfillment centers at further discounted rates (11/9): 50% less than FedEx and UPS! Controlling reseller replenishment to AMZ warehouses: a) insures better fill-rate service and productivity/package from fulfillment centers; and b) adds more volume to their AMZ Flex-driver, cloud platform.
Do these news-dots add to a vision? Can AMZ invent breakthrough metrics for last-mile logistics; and, an “Intra-City, Last-Mile Delivery Cloud Platform”?
LAST-MILE DELIVERY PLATFORM (LMDP)?
A digital platform business-model (like Uber’s, etc.) is where parties meet digitally to exchange value. The creator/host gets fees. Amazon has many reinforcing, winner-take-all platforms that add to increasing monopoly capabilities. Are they now creating a LMDP for some cities that distributors could both participate within and be challenged by?
More Thoughts about LMDPs
- Key goals for a LMDP: Deliveries (and their value) per route-mile must get dense enough to: lower cost-per-delivery and response-times to breakthrough levels. Say: 30 minutes for click-to-receiving at a cost of $2-4 cost!
- Platform density contributors (besides soaring, fulfillment-center shipments)? Ship-to stores (like AMZ’s tires to tire installers); lockers; (maybe someday) drones gliding down from elevator towers to job sites and apartment balconies; etc.
- Densest cities are most promising. AMZ is experimenting in London and LA.
- When will other shippers (beyond resellers) be invited on to AMZ’s existing LA platform?
- If so, will distributors (and contractors) allow their spare or off-hour drivers and vehicles to be a side-business on such a platform?
- Will freelance drivers with specialty trucks – bulk, frozen, refrigerated, etc – join in?
- Who else could get to critical-mass volume and winning economics for all? Many venture-backed startups? FedEx and UPS? But, will they disrupt their own to-the-hub-and back-same-city-delivery model?
- If a LMDP platform could deliver breakthrough response times and costs, should this be on your radar screen?
LEGACY-CHANNEL PLAYERS BECOME BUSINESS-MODEL INNOVATORS
AMZ is forcing all legacy channel players to rethink their ways. Do you have the vision, analytics, and courage to change and win at Customer-Centric Cloud Commerce 2021?