Amazon’s logistics foray and UPS relationship

An article in the Wall Street Journal (December 23,2015) titled “Amazon Seeks to Ease Ties with UPS” describes the close relationship between the two companies evolving into one where Amazon is attempting to control it’s logistics costs, which increased from 10.4% to 11.7% in the past year. Amazon is described as hiring UPS managers, reserving aircraft for delivering, working with USPS and focusing on increasing service while decreasing costs. Will Amazon be successful in launching it’s own logistics alternative and decreasing costs? What can UPS do to retain the business? Should UPS invest in drones and other technologies so Amazon can decrease it’s role ?

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About aviyer2010

Professor
This entry was posted in Cost, Ecommerce, logistics, Supply Chain Issues, Uncategorized and tagged , , , . Bookmark the permalink.

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