Amazon pitch ‘tent’ warehousing solution as optimisation worries grow

Amazon is reportedly using fabric tents as makeshift warehouses in a number of American states, in the latest story to break in recent weeks hinting at the company’s aggressive growth plans.

The ‘delivery stations’ are used for the housing and sorting of packages before they reach their final destination, and are said to be temporary whilst Amazon builds its permanent warehouses.

The tents are located Tennessee, South Carolina, Arkansas, Georgia, Colorado, Louisiana, Kentucky and Idaho, according to Business Insider.

Several reports within the last quarter that have shown the rapid scaling of the logistics giant, including a previous story which saw the introduction of Amazon Shipping as a new service. The report suggested that Amazon was inviting companies to join its fulfilment service, enabling Amazon carriers to deliver product for its network of third-parties.

The company’s annual filing with the Securities and Exchange Commission (SEC) saw it list ‘companies that provide fulfilment and logistics services’ as its competitors for the first time.

Amazon seems to be being put under pressure from its own ‘Prime Effect’ with more than 5 billion deliveries made using the same or next-day service in 2017 alone. The price of providing the Prime service is growing year-on-year, and this number doesn’t even begin to cover Amazon’s ‘standard’ delivery service. There have been suggestions that if the e-commerce powerhouse doesn’t optimise its strategy, it could see disaster.

“We seek to mitigate costs of shipping over time in part through achieving higher sales volumes, optimizing our fulfilment network, negotiating better terms with our suppliers, and achieving better-operating efficiencies,” the company said in its SEC filing.

“We rely on a limited number of shipping companies to deliver inventory to us and completed orders to our customers. If we are not able to negotiate acceptable terms with these companies or they experience performance problems or other difficulties, it could negatively impact our operating results and customer experience.”

admin2019-04-17T16:59:13+00:0017 April 2019|Tags: 3PL, Logistics|

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Amazon pitch ‘tent’ warehousing solution as optimisation worries grow

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Amazon pitch ‘tent’ warehousing solution as optimisation worries grow

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