Amazon Bets Big On Faster Shipping

Amazon Bets Big On Faster Shipping

November 15, 2019

Amazon spent $1.5 billion to improve its transportation and warehouse infrastructure and increase its inventory to cut its Prime shipping from two days to one.

The next-day delivery investment has brought benefits, including new record sales, improved revenue growth, increased warehouse and shipping staff, and happier customers. However, shipping costs have also increased 46% in the company’s second quarter.

Investors are overall optimistic about the outlay, but Amazon’s recently predicted weak holiday demand, which has raised some concerns.


Video Spotlight: Amazon’s profit falls due to same-day delivery costs, and other top business news


This post is based on the CNET article, Amazon’s next-day shipping ambitions are costing it a fortune, by Ben Fox Rubin, October 25, 2019, and the YouTube video, Amazon’s profit falls due to same-day delivery costs, and other top business news, by CityNews Toronto, October 25, 2019. Image source: Daniel Grizelj/Getty Images

Discussion Questions:

1. Is Amazon’s one-day Prime shipping a strategic capacity decision?

Guidance: Yes – it enables Amazon to meet customers’ demand for next-day delivery, increases operating costs, reflects a long-term commitment to e-business, and enables competitiveness in e-retailing.

2. What investment did Amazon make to cut its Prime shipping from Continue reading

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UPS Wins the Race for Drone Deliveries

UPS Wins the Race for Drone Deliveries

October 18, 2019

Logistics master UPS has won the race to be the first Part 135 Standard certified operator of a drone airline.  This certification means UPS does not have size or scope limitations on its drone airline operations.

October 14 marked UPS Flight Forward’s first drone delivery flight under its new FAA certification, delivering medical supplies to WakeMed’s hospital campus in Raleigh, North Carolina. UPS’s certification allows its fleet to have as many drones and remote operators as it wishes, payloads in excess of 55 pounds, and permission to fly out of the line of sight both day and night.


Video Spotlight:


This post is based on the Robotics and Automation News article, UPS attains FAA’s first full approval for drone airline, by David Edwards, October 9, 2019, and the YouTube videos, UPS CEO David Abney on upcoming drone deliveries, by CNBC, October 1, 2019, and UPS wins approval to operate nationwide fleet of drones, by CNBC, October 2, 2019. Image source: Shutterstock/Mopic

Discussion Questions:

1. How did UPS position itself to be the first company granted the Part 135 Continue reading

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