Amazon ad nauseum

Submitted by admin on Wed, 01/08/2020 - 09:42

... E-commerce has become a growth driver in all 3PL segments and working with or against Amazon remains a hot topic, notes Evan Armstrong, president of A&A.

The consultancy estimates 2018 U.S. e-commerce logistics costs were $141.6 billion, with no immediate signs of a slowdown.

“E-commerce presents many opportunities for 3PL providers,  and is also bringing omni-channel business with it,” says Armstrong. “Furthermore, it can result in higher margins for 3PL providers, and its volatile volumes play well for non-asset-based companies.

According to Armstrong, manufacturers and 3PL providers continue to strategize on how to work with or against Amazon, while some are following FedEx’s challenges after its recent decision to discontinue direct business with this mega 3PL...

This was excerpted from the 6 January 2020 edition of Supply Chain Management Review.