Rachel Nielsen Staff Writer Puget Sound Business Journal
Peter Wynn Thompson
Amazon.com (Nasdaq: AMZN) is focusing on an ambitious logistics effort that could allow it to bypass standard middlemen and carriers and lower your expenses for deliveries, according to an innovative new document that appeared this week.
An Amazon spokesman stated the internet retail monster is not commenting regarding Bloomberg report.
In accordance with Amazon’s program, major providers will likely to be displaced.
“Sellers will no longer reserve with DHL, UPS or Fedex but will reserve directly with Amazon, ” the report said. “The ease and transparency for this disintermediation will likely to be revolutionary and vendors will flock to FBA given the competitive prices.”
FBA, or Fulfillment By Amazon, is Amazon’s solution for 3rd party vendors for which it handles the packing and shipping associated with vendors’ services and products. Attracting more vendors towards the program would enhance Amazon's bottom line. It will also imply the business will be recruiting and employing a lot more folks in Seattle and internationally to create out exactly what could become a very sophisticated distribution system.
Amazon has recently shown willingness to create from infrastructure necessary to do its own deliveries. The company features launched its Prime today one- and two-hour delivery service in many major U.S. towns and cities. The company currently leases a large number of vehicles in order to make those deliveries feasible. Planes are the next reasonable action.
In December, the Seattle days stated that Amazon had been negotiating to lease 20 Boeing 767 freighter planes for its very own deliveries. That could mean that Boeing’s (NYSE: BA) Seattle-based unit, Boeing Commercial Airplanes, could benefit from Amazon’s logistics effort. FedEx already uses the 767s for its fleet. Another big delivery business getting in in the online game could be a good start towards Everett range.
The logistics effort would turn into a full-fledged program, become known as worldwide Supply Chain by Amazon, that could launch since in 2010, the document said.
Amazon will form partnerships with 3rd party freight businesses and carriers to create the program after which gradually drive all of them out when volume is sufficient and Amazon can perform operating the machine by itself.
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