'Amazon effect' | Will inspire the logistics industry to accelerate the transformation?

As automation becomes the new standard for the logistics industry, competition is bound to rise...

Amazon launched a shipping service (Shipping with Amazon (SWA)) designed to compete with UPS, FedEx and other companies. It is an end-to-end shipping solution that can be picked up from merchants and delivered to consumers. It will initially be in Los Angeles, California. The ultimate goal of operations is to provide freight rates for FedEx and UPS companies in other locations.

This means that Amazon has the potential to become a supplier to automate the supply and logistics chain, which will bring unprecedented impact to the entire logistics industry. This also means that traditional transport operators need to take advantage of digital transformation and automation to find The method, and the sooner the better, so as to ensure that their own business catch up with this wave of logistics automation.

Dan Stoll, technical product manager for workflow automation/digital solution provider Nintex, said in an interview with EBN: “This should not cause panic, but as automation becomes the new standard, competition is bound to rise;” Indeed, automation is for success. Expanding business is essential, and expanding business is the ultimate goal of all companies.

"FedEx still hopes that this "Amazon effect" will not steal too much business; but other logistics courier operators such as the USPS (US Post Office) and UPS, will need to change their logistics procedures that have been in operation for a long time as soon as possible. 'Stoll said: 'It can be difficult to change the workflow, but a successful automation solution saves time and fixes avoidable problems that can take up valuable work hours.'

With a third-party automation platform, logistics providers can quickly tie together several different processes, such as manufacturing, distribution, and transportation, and improve cargo delivery management. A study published by ChainLink Research, a market research organization Real with Digital Supply Chains pointed out that the freight management system can provide a wealth of functions, such as truck load mapping, container management, truck internal scanning, status monitoring, etc.

Automated systems are generally considered more suitable for logistics companies with large fleets, but small and medium-sized fleets or courier companies can also take advantage of automated systems deployed in targeted workflows; the benefits of workflow driven solutions, Regardless of how small your initial deployment is, you can quickly and easily pick up the goods and scan the order to see its value when you deliver it; this is a simple and efficient task, improving accuracy and reducing disputes. Can also speed up the collection process.

Stoll said: "The planning of automated processes is very important for the traditional logistics industry to maintain the mainstream. All industries, especially the logistics industry, should not have to say more than they should seek to automate the case in 2018, but this is clearly not a priority consideration for traditional freight forwarders. Perhaps the 'Amazon effect' can change these logistics players who are slow to respond to new trends.

As the logistics industry continues to be technologically advanced, perhaps competitors may consider commissioning external automation technologists and then focus on the logistics industry itself that can do better, thinking about how it can provide faster, more reliable, and automated freight forwarding. Process.

Compilation: Judith Cheng

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