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It seems obvious that Amazon Logistics will eventually accept external customers and become a profitable division like AWS because their delivery workers are all contractors instead of full time employees with benefits.
Generally, parcel delivery workers make a living wage and are protected by unions. I’m quite certain that companies like Fedex and UPS have brought enormous amounts of efficiency to the process. By Amazon creating their own system filled with contractors, they’re making a frontal attack on worker’s wages. Instead of being paid by the hour and having benefits, Amazon pays people by the lot and they get no benefits. They are contracted to deliver a set of packages to a geographic area no matter how long it takes. Amazon argues that if you can do it faster, than you can make more money. I’m not stupid enough to think that Amazon won’t increase the number of packages needed to be delivered if a route is consistently being completed quickly. They have access to that data in real time.
What do you call it when there’s integration, but it isn’t horizontal?
Not gonna lie, I ordered 3 items during Black Friday.
When shipment arrived, only 2 items were packed but Amazon didn’t know both arrived.
A week later it admitted defeat and said package lost. I was refunded on all 3 items
I know it’s early but my advice today: order shitloads of stuff and hope amazon doesn’t know it delivered the items! FREE
The most fascinating thing to me about Amazon that truly separates them from 99.9% of businesses is that they focused on building an efficient supply chain that they then built a business on top of. As someone who works in supply chain consulting, I can verify that many many business (big businesses) do not focus on supply chain until it becomes a large enough expense that they have to, they build a business and then adapt a supply chain that works for them. There are incredible opportunities for savings within companies that have poorly executed supply chain networks. Often by the time they realize this, it’s too late to truly realize all the benefits of a “perfect” supply chain.