Amazon Beats Supply Chain

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As supply chain disruptions cause shipping delays, experts believe Amazon's logistics empire and predictive analytics will help it avoid the worst of it. #Amazon leased long-haul planes to expedite the delivery of goods from China to the United States, and it has been manufacturing its containers and chartering private cargo vessels for years. Retailers such as Walmart, Home Depot, Target, IKEA, and Costco are now experimenting with the strategy, chartering smaller vessels to transport goods to less congested ports.

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Online holiday orders are pouring in, but supply chain disruptions are causing concern this season. 77 container ships are waiting in San Pedro Bay, California. That's a record, but some of those ships are unscheduled container charters with no docking plans. The ports of Los Angeles and Long Beach have announced that beginning November 1st, shipping companies will be fined for each container left on the dock. According to new data released this week, the trucker shortage in the United States has reached an all-time high of 80,000.

However, Amazon has made some unusual and significant moves to avoid the worst of it. Los Angeles has 79 vessels that have been stranded for up to 45 days. Amazon's latest venture, which I've been following for the past two days: it sat in the harbor for two days. For years, Amazon has chartered its cargo ships, a strategy that retailers such as Walmart, Home Depot, and Costco are experimenting with this holiday season. Amazon is also manufacturing its containers, expanding its workforce and warehouses, and leasing long-haul planes for the first time to expedite high-priority goods from China to the United States. They've been waiting for this.

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How Amazon Beats #Supply #Chain #Chaos

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