Foundering

Amazon Part 5: The Price of Speedy Delivery

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Mar 31, 2022
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ANECDOTE

Local Couple's Hard Start Running DSP

  • Ted Johnson and his wife moved to New England to run an Amazon Delivery Service Partner and thought it would be a life-changing opportunity.
  • The operation felt rushed, disorganized, and overwhelmed them with unexpected costs and responsibilities.
INSIGHT

Christmas Meltdown Catalyzed Logistics Buildout

  • Amazon's delivery failures in 2013 exposed dependence on carriers and triggered a rapid buildout of its own logistics network.
  • The company raced to add sortation centers, planes, and trucking to control capacity and avoid future holiday meltdowns.
INSIGHT

Automation Approach Extended To Transport

  • Amazon applied its automation-and-software playbook from warehouses to transportation to scale quickly.
  • That approach prioritized speed, control, and cost reduction often at the expense of traditional carrier relationships.
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