‘The Amazon effect’ changing logistics

By Laura Raines, Contributing Write, Atlanta Business Chronicle, Aug 26, 2016

It’s not faster than a fairy godmother — but Amazon is close.

With its almost-endless product choice, focus on customer service, and rapid delivery, Amazon is dominating e-commerce. The company accounted for 60 percent of U.S. online sales growth in 2015, according to Forrester Research data. The Amazon effect is driving change throughout the retail, supply chain, and logistics industries.

“Companies used to capture customers on their own terms. Now they have to address them on their terms. It’s no longer a transaction, but an experience,” said Irv Grossman, executive vice president Americas, CHAINalytics, a global leader in supply chain consulting, analytics and marketing intelligence.

The expectation of 24/7 accessibility has pushed the function of supply chain to front and center, he said. “Supply chain used to be about taking costs out of the system through economies of warehousing, distribution and transportation. Companies did strategic planning maybe every three years. Now improvements are ongoing to ensure that the supply chain is nimble, responsive, employs the best technology, and people. Its role is improve customer service and drive revenues. We’re seeing chief supply chain officers in the C-suite,” said Grossman. [Full Story]

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