Amazon’s App & Supply Chain Paradigm Shift

Amazon’s App & Supply Chain Paradigm Shift

Already technology such as smart phones and related apps have changed how supply chains function from top to bottom. But are we ready for paradigm shift on last mile delivery? If not, supply chain executive and participants need to get ready, because Amazon is about to make that a reality…

In the past month, Amazon has put plans in motion to enlist ordinary people, rather than professional carriers such as United Parcel Service (NYSE:UPS), to deliver packages. Amazon’s new app, called “On My Way,” would recruit drivers to delivery packages as they take their typical commutes around urban areas and would operate on a model much like Uber’s,

Like Uber, which has come under some scrutiny for its security policies, Amazon will also need to overcome some hurdles on the way to completing its plan. After all “including how to make sure that deliverers don’t make off with the packages and whether physical retailers will cooperate with the online firm, one of their main rivals. Having competitive pricing will be another issue, as it costs UPS an average of about $8 to deliver a package in the U.S.”

Yet it seems inevitable that Amazon can tackle these problems. The company has a long-standing commitment to using and developing new technologies in order to meet and exceed consumer expectations. This kind of thought leadership leads to changes across supply chain, and already competitors are developing their own models.

It’s time to get ready for this paradigm shift. Though it may be disruptive at its start, it will set a new standard in the field.

 

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