Taking advantage of one of the highest growing expenses
Brandon Patrick
MGMT 411
Embry Riddle Aeronautical University
With the demand for electronic trading the demand for cheaper delivery of
products has grown. Companies have made it essential to find better ways to deliver
customer orders in the least amount of time possible with lower cost. As the leading ecommerce company Amazon is looking into new innovative measures to satisfy their
customers. With the improvement for better customer service and better product prices
Amazon is improving the delivery of products to customers. Amazon’s expansion and
growth in the logistics market reveal the company’s strategy to reduce operation costs
and realize on-time product delivery. The company has made a move to expand its air
cargo network to replace its current transportation resources. This new strategy will allow
the company to achieve its fast delivery objectives to its growing customer purchases.
The purpose of this research is to study Amazon’s logistics management strategy
with the opening of their own air delivery service and its impact on the company. This
study presents the Amazon’s logistic strategy in air cargo. The research examines how
the company is implementing the logistics strategy and its overall impacts on different
business units of the company specifically the supply chain. The effectiveness of the
logistics strategy is evaluated to determine whether it meets the company’s objectives.
The company’s logistics strategy aims at reducing transport costs and reduces the
delivery time of products to the customers. "Creating an air transportation
network is expanding our capacity to ensure great delivery speeds for
our Prime members for years to come," Dave Clark, Amazon’s Senior
Vice President of worldwide operations. Amazons announcement in August has
limited the pros and cons available for the analysis for their business model.
