Newsthird-party truck companies, world's largest online retailer, supply chain management, delivery on same day, two-day delivery
Dec 07, 2015 02:07 AM EST
Despite its future plans for dropping goods via drones, Amazon is strengthening its fleet of trucks for ensuring timely delivery. Amazon has announced thousands of new trailers, which are being added to its fleet.
The world's largest online retailer has forged alliances with several carriers. The new fleet of trailers will take supply chain management of Amazon further forward for ensuring delivery options on same day or within two days as chosen by shoppers.
The new trailers are branded under Amazon, which started rolling out the branded trailers from 5 December 2015 onwards.
On the occasion of flagging off the new trailer, Amazon organized an event at McCormick Place, where staff loaded a new truck with over 2,000 care packages. The trailer will transport these packages to overseas military troops for those who can't come home for the holidays.
As part of the agreement with Amazon, third-party carriers will transport goods using the new trucks.
According to a news report by Chicago Tribune, Mike Roth, Vice-President (operations) for North America, Amazon, said, "We have a very good and longstanding commercial relationship with many carriers, but we know that there is supplemental capacity needed in the market. So we are supplementing our existing carriers with our own trailer equipment."
This is for the first time in the US that Amazon-branded trailers are used for transporting the retailer's inventory.
However, Amazon will have more control and monitoring the shipping network. The new trucks wouldn't be utilized for delivering goods directly to customers, but transporting inventors between the warehouses of Amazon.
As per a report published by CNET, Amazon hopes that thousands of new trailers facilitate delivery process mostly on the same day or maximum two days.
The Seattle-based e-commerce major owns trailers only while the third-party truck companies will have to provide actual trucks and drivers. The US retailer will, however, continue to utilize the services of FedEx, US Postal Service, United Parcel Service and several regional carriers for delivering goods directly to customers.
The new fleet of trailers under own brand is part of continuous innovation at Amazon to satisfy ever-increasing requirements of customers.
Amazon believes that the new supply chain management will help it avoid delays and provide shoppers more time to choose Amazon's delivery options one-day shipping or two-day shipping, as reported by engadget.
Amazon is banking on its partners for drivers and trucks. Amazon's Prime Now Service is a same-day delivery option. This is being implemented with regional couriers and branded vehicles.
Amazon prefers to have its own shipping network enabling it speed up shipments and ensure timely deliveries.