Amazon is rapidly ‘backward-integrating’ its business

Amazon, the global online retailer, is investing $1.5 billion is its own air cargo hub, to be located in Kentucky.  Until relatively recently, it had outsourced its logistics operation in the USA to companies such as FedEx and UPS.  But increasingly it is ‘insourcing’ this activity.  It already has its own fleet of truck for some regions of the US.  And it has taken control of shipments from China.   They believe this shift will help them keep costs down.  More detail in this Forbes article.

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This entry was posted in Chap 05 Supply chain, Sector: Retail and tagged , . Bookmark the permalink.

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