According to an article on ajot.com, giant ecommerce retailer Amazon is adjusting its domestic and international logistics strategy based on experiences abroad in India, where tight, cramped roads and cities have presented numerous delivery challenges. Apparently, in many cities, “snarl-ups are frequent and road signs unreliable.”
With India’s undeniable, exponentially growing demand for ecommerce goods, and the fact that India is the company’s largest growing pool of customers, Amazon is testing ideas such as picking up packages directly from sellers rather than first storing goods in warehouses, for example. Concepts like this can potentially save both time and money to offset already tight margins driven by heavy discounting. The company has also observed local competitors who have adapted to the landscape by changing logistics networks and using motorbikes instead of trucks on tight roads, for example.
It is fascinating to see the industry first develop new localized delivery strategies and then find new ways to apply those concepts back home too. One thing is for sure: Amazon is proving that it is much more flexible in its service delivery model than in the past and that it will do everything possible to stay competitive. The company is currently developing a model of cheaper deliveries and reduced warehousing costs to help it grow in the U.S., Mexico, and Brazil, according to the article.
What is the solution to delivering goods in tight, cramped, population dense cities? What other delivery innovations are local players using that the big box retailers can learn from?
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