Amazon Trying To Get Its Hands On Freight Management Technology
Amazon’s freight transportation network has been expanding at a breakneck pace recently, and companies that provide the technology needed for such operations are now reporting that the retail giant has been reaching out to them.
Amazon has recently taken steps to register ocean cargo shipments and lease cargo planes in what many experts believe is a move to slash shipping costs and get rid of middlemen. Their quest to obtain the right technology to determine efficient shipping routes and organize fleets of planes, ships and trucks now appears to be in full swing. According to sources that have been contacted by the firm, Amazon is seeking existing technology in hopes of reducing development time.
While transportation management software is being increasingly used to control goods as they move through supply chains, not everyone has gotten on board yet. This has been an area of great interest to investors, but many of the new entrants in this field have yet to give any of the top forwarders a run for their money.
Lower Shipping Costs Lead To Lower Prices
If they succeed in obtaining a platform for freight forwarding, Amazon would be able to reduce the costs incurred by sellers, which would have the ultimate result of keeping prices as low was possible for consumers.
Amazon could eventually become a real threat to existing forwarders if it manages to make headway with their smaller clients, many of whom are already sending their goods to Amazon distribution centers.
Freight forwarding is a $150 billion-per-year industry, and Amazon rarely enters into anything half-heartedly. Observers will be watching their next moves very closely to see exactly how this plays out as any major move by Amazon could well have a ripple effect on the entire industry.