How Amazon Uses Last Mile Delivery To Improve Logistics

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Last mile delivery is the costliest part of logistics management process. In this video, we look at the journey that Amazon has traversed to reduce the cost of last mile delivery, including its initiatives going into the future.

The biggest challenge that any e-commerce business like Amazon faces is the last mile delivery process. Here is how Amzn used last mile delivery for logistics management.

Amazon started in 2009 under the name "local express delivery." Then Amazon took their in-house logistics and last-mile delivery expertise to the world via Operation Dragon Boat.

Needing to improve its last mile delivery capabilities to keep up with its expansion, Amazon bought a 25% stake each in Colis Prive and Yodel, two shipping companies.

In 2015, Amazon launched 58 delivery hubs all over the US with the aim of achieving last mile delivery within a couple of hours. After that, Amazon launched Amazon Flex- an on-demand delivery service to deliver goods from Amazon warehouses to customers directly.

Amazon Logistics was launched to reduce the cost of logistics and shipping. In 2019, Amazon launched its free one-day delivery.

Amazon launched a Delivery Service Partner Program, with which amazon partners with logistics start ups. Amazon is planning on starting to use drones for last mile delivery by 2030.

Amazon Scout is a fully electric robot that is designed for the direct delivery of packages to customer doorsteps.

With all these tactics, Amazon has conquered and is successful in overcoming challenges of last mile delivery.

Therefore, if you are looking for solutions for your business, you would do well to study how Amazon went about analyzing and developing its in-house logistics solutions.

You will also discover that embedded within all such successful logistics systems of today, are advanced tech tools like an automated, modern last mile delivery software.

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