Amazon learns a lot from logistics in India

Author without image icon
Editorial
23 November 2015
2 min

The
US company Amazon intends to apply the strategies it uses in countries with
less developed logistics infrastructure to other countries as well. For
example, Amazon cites the way it delivers in India.

The
heavy traffic and the country’s inadequate infrastructure have
caused headaches in the past, but the experience gained and
information gathered will now be used to
countries as well.

A
motorbike is not secured

Traffic
traffic in India is often completely gridlocked, causing major delays in the delivery of orders. This is, of course, a problem for
all parcel delivery services. Amazon therefore uses motorbikes in India
that can weave more easily through the heavy traffic and thus still deliver an
on time.


What is the competition doing?

The
American company’s competitors are largely grappling with the same
problems. Flipkart, a parcel delivery firm also operating in India, uses
some cases even uses food delivery couriers who carry the parcels on their heads
and deliver them that way. The 4,500 to 5,000 so-called dabbawalas deliver
busy streets of Mumbai and
outperform many other couriers when it comes to punctuality.

Amazon
as a marketplace

Because
Amazon is only permitted to operate as a marketplace for partners in India and is therefore
is not permitted to operate large distribution centres, creative solutions had to be found to
deliver parcels on time. Collecting orders from suppliers and delivering them directly to the
recipient’s door has proved highly lucrative and has already been a
success in India. This method of delivery saves a great deal of money, and Amazon is
is now considering whether it might also be possible to roll out this ‘Easy
Ship method in England as well. A distribution centre
would then become unnecessary and would save logistics companies a great deal of money.

Editorial LogistiekProfs