|Quoting RDUDDJI (Reply 73):|
I'm not saying it wouldn't/won't work, but to say there's "little harm" if it fails isn't accurate.
You guys don't get what they are doing. They already spend hundreds of millions on delivery every year. To optimize costs, they have examined whether doing some of the work themselves can save money and improve reliability. Instead of saying, "Come get our shipments and take them to the customers", they have broken "delivery" into its component parts. Among others, these are pickup, sort, line-haul, sort, last-mile. They have then decided to move a portion of the overall delivery requirement by a system that includes components that they have brought in-house.
Sometimes, I get a ground package from Amazon that FedEx Ground has picked up at Amazon and brought to me through its Home Delivery service. Sometimes, I get something from Amazon that UPS has picked up somewhere (usually far) and has delivered by Next Day Air. Etc. But mostly these days, I get my Amazon deliveries by a different method (which come to me every few days because it's a big money-saver (and convenience-generator) here in Manhattan to buy essentials from Amazon and from Walmart.com). These days, a package is usually picked up from the warehouse (one of several in the Northeast) by Amazon contract line-haul, taken to Avenel, NJ
, where it is aggregated for the USPS
with other parcels coming to the NY and Long Island areas, among others, and then taken from Avenel by Amazon contract delivery to the individual post offices (DDUs) on Long Island and to USPS
ADCs (Area Distribution Centers) in Manhattan. (So my parcel for 10021 actually gets injected by Amazon at the bigger facility at 10022 and brought by USPS
from there to the carriers on my Zip.) This Amazon-run service gets me a parcel from the Delaware warehouse to my door overnight in most cases, by eliminating the delays inherent at the various stages when it's done by Smartpost or Newgistics, at essentially the same operating cost as those guys have.
Seems to me that all they would do with an air component, is supplement that operation. Instead of handing a parcel to FedEx at ONT
, for example, to deliver to 10021, they could use their own air to move it to ABE
or Avenel, and put it into their own pre-existing network using USPS
for the last mile. Is it cheaper to do it that way themselves? Only actually trying it will tell.
Or, they could use the air to balance warehouse inventory levels, air shipping say 20 Transformer toys to ABE
for boxing there and delivery through their existing ground network. That would save the weight of the delivery packaging. More likely, it would be speedier to delivery-package the stuff at the origin (as Apple often does with the iPhone in China), but the options are endless and what works best can be determined by the people who know best. (You guys knew that about the iPhone you pre-ordered, right? It is delivery-packaged and labelled with your address in China, put on a pallet and air-shipped to the nearest carrier delivery center in the US, where it is broken down and injected to the carrier's delivery network with no intermediate warehouse stop for processing in the US.)
In short, I don't think this is going to be as significant an expense as people think, and it is supplanting an alternative expense, so what's the big deal?