Amazon’s New Delivery System Will Depend on Logistics
Freight transportation is an industry that has been a cornerstone of the US economy for decades, and more corporate juggernauts are showing interest in the field than ever before.
Companies like Uber, Tesla, and others have thrown their hat in the ring, claiming their ideas and technology have the capacity to modify this crucial field and take it in a whole new direction. The latest household name to jump into the fray is Amazon, with the online retailer aiming to make affordable grocery delivery a reality.
The company made headlines when they acquired Whole Foods Market Inc., an upscale grocery company. Now the online marketplace and plans for delivery depends almost solely on the company’s ability to acquire and use logistical information.
Produce shipment has been one of the most difficult tasks to master for the freight industry, with the state of the freight making it a high risk if things are handled improperly. In the past, this potential liability was enough to cause many companies to back off the idea entirely. However, Amazon’s immense resources and favorable reputation in the mind of consumers may be enough to break new ground in this area.
The grocery sector is one that Amazon still hasn’t mastered, especially when compared to its presence in fields like consumer electronics, clothing, and gift items. Characteristics like quick delivery and free shipping have helped the e-commerce giant grow to its current size, and analysts behind the scenes believe this can be continued by combining it with reliable logistical information.
Logistics has played a larger role in freight transport over the past decade, with new technological solutions making it easy for companies to plan ahead and coordinate their resources in a more efficient manner. Logistical analysts from financing companies have spoken favorably of Amazon’s progress thus far, citing their network of distribution and fulfillment centers as a good start.
This isn’t the first company to try their hand at affordable grocery delivery. HomeGrocer launched in 1997, but the dot-com crash three years later stopped them from getting the financing they need. With Amazon’s impressive market share and dominance in so many areas, their chances are substantially better.