Category Archives: eRetailers

Amazon And Alibaba Bet The Future On Supply Chain Management: eRetailers Invest Big In Logistics

Description:  The world’s largest retailers are planning to not only grow into the world’s biggest logistics companies, but to completely revolutionize the industry.

Source: Forbes.com

Date: May 31. 2016

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Both Amazon and Alibaba have recently made significant investments to their supply chain capabilities and in the not distant future they will soon handle more shipments than most specialist delivery postal and courier companies.

In effect, these companies are building their own streamlined delivery systems that may replace the more established specialists.

Earlier this month, Amazon signed a new deal to lease more cargo jets, in effect doubling the size of its fleet. This is partly a response to increasing demand (shifted 27% more units in last quarter) but also a part of a grander plan.

The aimfor these internet giants is nothing less than the obliteration of all alternative forms of retail. When it comes to sales, Wal-Mart dwarfs Amazon by a factor of four. Jeff Bezos, Amazon CEO, plan is to undermine these lead by competing for consumer attention in ways that Wal-Mart can never match. That is, by offering a nearly infinite menu of goods, same-day delivery and liberating from the tiresome trip to the busy out-of-town store.    read rest of story

Questions:
1.  How do Amazon and Alibaba plan to revolutionize the logistics industry?

2.  Do you feel these companies will be successful in this strategy?  Why or Why not?