Tuesday, December 3, 2013

Amazon Flies!

imageI know that it is old news already: After all, it has been almost 24 hours since it was widely reported that Amazon may start delivering your packages using autonomous drones. And of course, there is plenty of commentary about how this may not happen soon (or never, may be) with the concerns about the technology, FAA rules, and even our ability to fight crime! But I think everybody is missing the point.

Lost in the whole buzz is the fact that Amazon has just upped the ante. Again. It used to be two (business) days, then it became next day (now with Saturdays included with a little help from USPS), then came the same-day delivery and now it is 30 minutes! The point that is being missed is that Amazon is not going anywhere, it is not letting any pressure on its competition, and it is still primarily a tech company that just happens to be also retailing.

The other question to ask: What should the other retailers be doing to respond?

With its sharp focus on customer satisfaction, deep pockets, and its habit of leveraging technology to solve problems, Amazon is redefining the retail landscape for ever. Retail as an industry has historically lagged when it came to adopting cutting-edge technology, but Amazon is changing that. It is not business as usual in retailing any more. To survive and grow, retailers will have to reinvent themselves as technology companies first just as I wrote earlier talking about Amazon. 

Retailers will have to leverage technologies to help them in everything they do – better demand management, better merchandising refreshes (life-cycle management), better pricing (near real-time response to demand and competition), and an across-the-board battle on logistics efficiencies including inventories, warehousing, and shipping costs.  

Related Articles:

Other Sources:

Want to know more about supply chain processes and supply chain strategy? Check out my books on Supply Chain Management at Amazon.
© Vivek Sehgal, 2013, All Rights Reserved.

No comments:

Post a Comment