Archive for Amazon.com

Guest Commentary: Not So Fast: How Technology is Slowing Express Delivery

Over the last few years, FedEx and UPS have seen significant shifts in how domestic and international customers are shipping. The shift from express to ground products is growing at an unprecedented rate – impacting carrier financials and even their own networks. As recently as last month, UPS posted a four percent drop in revenue with CEO Scott Davis calling the financials “disappointing.” He, like FedEx’s Fred Smith, acknowledges the shift to slower – and […]

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This Week in Logistics News (April 1-5, 2013)

Welcome to April. One quarter down, three to go in 2013. It was a relatively quiet week for news, so let’s get to the items that caught my attention. JDA Software Announces Release of JDA eight Roadnet Technologies Releases MobileCast On Track for Management of Mobile Workforce Employees CEVA Group plc Announces Preliminary Unaudited Results for Full-Year 2012 Diesel prices decline for the fifth straight week, reports EIA (Logistics Management) Amazon Ups the Ante, Delivers […]

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In Logistics, Somebody Has to Own the Assets

In most aspects of life, an asset is an asset, “a useful and desirable thing or quality,” as Dictionary.com defines it. But not in the logistics world, at least not to private equity investors and venture capitalists who view a 3PL with assets like an overweight runner, wearing a lead track suit and cement sneakers, in a field of sprinters. Non-asset is non-fat, it’s sexy and desirable, it’s what every start-up 3PL tattoos on its […]

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Amazon Plans Carefully Its Distribution Capacity Growth

It’s that time of year again, when shoppers hit the stores on Black Friday and go online on Cyber Monday, the biggest day of the year for Internet sales. Experts predict that Internet sales will increase 12 percent this year; Amazon’s sales this holiday season will grow much faster. At the CSCMP Annual Conference in October, Mike Roth, Amazon’s VP of North American Fulfillment Services, gave a speech titled “Supply Chain Technology Powering Earth’s Biggest […]

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The New Amazon Distribution Model

Recently, Kiva Systems told its existing clients how its acquisition by Amazon would affect them. But the news also revealed something about Amazon’s distribution strategy. So here is the news: Kiva will not be selling any new systems to new customers for the next one and a half to two years. Instead, Amazon will be filling its new one million square foot distribution centers (DCs) with Kiva robots. In its second quarter financial statement, Amazon […]

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Kiva Systems Acquired at a Very Steep Price!

Amazon.com’s acquisition of Kiva Systems keeps coming up in my conversations with industry peers and colleagues. Kiva is a provider of advanced robotic material handling systems — or looked at in an alternative way, the company brought to market much more intelligent Automatic Guided Vehicles (AGVs) than we had seen before. Adrian wrote about the acquisition shortly after it occurred. Now I’d like to add my two cents. Back in 2009, I wrote a Strategic […]

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Supply Chain and Marketing: A Growing Collaboration

I recently received a newsletter from Lehigh University’s Center for Value Chain Research that showed the American Marketing Association’s (AMA) definition of “marketing” right next to the Council of Supply Chain Management Professionals (CSCMP) definition of “supply chain management.”  Here are their definitions: AMA – Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.  CSCMP – Supply […]

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