The Logistician
  • Home
  • Mode
    • Air
    • Sea
    • Road
    • Rail
    • Waterway
  • Industry
    • Aerospace
    • Automotive
    • Chemical
    • Cold Chain
    • E-Commerce
    • Fashion & Lifestyle
    • FMCG
    • Hi-Tech
    • Industrial
    • Luxury Goods
    • Project & Heavylift
  • Technology
  • Library
    • Books
    • Videos
  • Contact us
  • Tiếng ViệtTiếng Việt
No Result
View All Result
  • Home
  • Mode
    • Air
    • Sea
    • Road
    • Rail
    • Waterway
  • Industry
    • Aerospace
    • Automotive
    • Chemical
    • Cold Chain
    • E-Commerce
    • Fashion & Lifestyle
    • FMCG
    • Hi-Tech
    • Industrial
    • Luxury Goods
    • Project & Heavylift
  • Technology
  • Library
    • Books
    • Videos
  • Contact us
  • Tiếng ViệtTiếng Việt
No Result
View All Result
The Logistician
No Result
View All Result
Home Industry

Amazon prioritizes capacity over speed with peak approaching

05/08/2020
in Industry
Amazon ưu tiên năng lực làm hàng hơn tốc độ làm hàng để tiếp cận mùa cao điểm
0
SHARES
31
VIEWS
Share on FacebookShare on Twitter

Amazon moved into its flex space usually reserved for peak season to handle the 40% Q2 jump in sales, Olsavsky said. With the slack in the network absorbed, the company is building up supply chain capacity ahead of an online-centric holiday shopping season.

“We need to build the inventory more for Q4, and we’ve run out of space,” Olsavsky said.

Amazon is also instituting tighter controls on what fills that space. New restrictions on warehouse space for third-party sellers go into effect Aug. 16, aimed at removing slow-moving inventory from Amazon warehouses.

Amazon’s operational costs related to pandemic precautions, including personal protective equipment (PPE), extra cleaning, onboarding and training of 175,000 new workers, went over the $4 billion Olsavsky projected for Q2 back in April. The CFO said changes to 150 established processes were necessary to facilitate social distancing, which also added to the cost. Amazon will spend an additional $2 billion on COVID-19 supplies and mitigation in Q3, according to Olsavsky.

“We realize that our first priority is to keep our employees safe, and the second is to focus on getting our capacity increased. Once we’ve done that, we are working very hard to get faster shipments,” he said. “We don’t think we’re going to be back in the short run, but we will continue to improve it. And hopefully, it’ll be less noticeable for our consumer base.”

Amazon’s expectations and approach for peak contrast that of UPS, which won’t build up capacity for Q4 this year. CEO Carol Tomé said Thursday that the 40,000 new workers the carrier brought on in the first half will get the company through the second — though it may be selective on what volume it takes in order to maintain service quality and pricing.

Amazon went through its own experiment with prioritizing volume in the first half when it temporarily restricted inbound shipments to essentials only. The company’s plan to continue building capacity through the end of the year suggests great expectations for Q4 volume and/or a preference for order volume over service level — which, at Amazon, means speed.

Source: Supplychaindive
Tags: amazonfeatured
Previous Post

Issue specific badges for vehicles entering and leaving Da Nang port in the middle of Covid-19

Next Post

A container from China arrives in Narvik. It could pave way for a new transport route

Related Posts

Đầu tư 1.830 tỷ đồng xây dựng hạ tầng KCN Yên Phong II-A
Industrial

An amount of VND 1,830 billion will be invested in the project of Yen Phong II-A Industrial Zone

01/03/2021
Trung Quốc rót tiền đầu tư vào các dự án “Vành đai, con đường xanh”
Industrial

China pours money into green Belt and Road projects

28/01/2021
Vietnam enjoys trade surplus with many FTA partners
Business

Vietnam enjoys trade surplus with many FTA partners

13/01/2021
Lần đầu tiên Ấn Độ xuất khẩu gạo sang Việt Nam sau nhiều thập kỷ
Comodity

India is about to export the first rice shipment to Vietnam after many decades

06/01/2021
GDP năm 2020 tăng 2,91%
Industrial

Vietnam’s GDP growth rate for 2020 reached an impressive 2.91%

28/12/2020
Thời điểm chín muồi để xây dựng hệ sinh thái phân phối Vaccine
Business

The time is now for a vaccine distribution ecosystem

27/11/2020

PHỔ BIẾN

Tại sao container rơi xuống biển và ai sẽ là người chịu trách nhiệm? Phần 2: Truy cứu trách nhiệm

Why do containership stacks collapse and who is liable?- Part 2: Legal liability

20/06/2020
Tình trạng khan hiếm container đang trở nên nghiêm trọng ở khu vực châu Á

Container Availability drops across Asia prior to Shipping Peak

17/09/2020
A Comprehensive Guide on the Shipping Industry’s many Bills of Lading

A Comprehensive Guide on the Shipping Industry’s many Bills of Lading

22/05/2020
Vietnam Airlines sẽ bay quốc tế từ 1/7

Vietnam Airlines plans to re-operate international flights from July 1st

12/06/2020

NỔI BẬT

THACO tiếp tục xuất khẩu sơmi rơmoóc sang Mỹ

THACO continues to export semi-trailers to the US

03/06/2020
Singapore Airlines cắt giảm hàng nghìn vị trí

Singapore Airlines Announces Thousands Of Job Cuts

11/09/2020
Samsung phủ nhận về việc chuyển nhà máy sản xuất màn hình từ Trung Quốc sang Việt Nam

Samsung Denies Reports of Move of China Display Output to Vietnam

22/06/2020
Chính quyền địa phương đẩy mạnh sự phát triển của cảng Ninh Ba – Chu San (Trung Quốc)

Ningbo-Zhoushan port integration promoted by local governments

08/09/2020
  • Home
  • Mode
  • Industry
  • Technology
  • Library
  • Contact us
  • Tiếng ViệtTiếng Việt
Email: info@logistician.org

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

No Result
View All Result
  • Home
  • Mode
    • Air
    • Sea
    • Road
    • Rail
    • Waterway
  • Industry
    • Aerospace
    • Automotive
    • Chemical
    • Cold Chain
    • E-Commerce
    • Fashion & Lifestyle
    • FMCG
    • Hi-Tech
    • Industrial
    • Luxury Goods
    • Project & Heavylift
  • Technology
  • Library
    • Books
    • Videos
  • Contact us
  • Tiếng ViệtTiếng Việt

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.