Back in October I asked the question:
What is Amazon? A 3PL, Retailer, IT Company, Delivery Company? And, I answered the question by saying: All of the Above. Now it is February and with the advent of
Amazon registering as a NVO and
with their purchase of trailers it has become clear - they are a 3PL and most likely will quickly become the best there is.
Amazon has such a unique ability to do things very quickly, apply incredible technology and put rock solid processes in place (supported by the incredible technology) that when they do this it seems like it comes out of no where. But, of course, it does not. I have written many times that Amazon could easily do this with their fulfillment capabilities.
In Supply Chain Quarterly, the magazine asks this question:
Amazon a 3PL? The most interesting part of this article is the "head in the sand" responses from some of the major company CEOs. Only 6 of the CEOs considered Amazon to already be a 3PL. Let's look at the basics of what Amazon does:
- They have huge warehouse / order fulfillment centers
- They take in product both from themselves but also from other retailers and e-tailers
- They provide customized fulfillment
- They now have trucks and do deliveries
- They are building out a courier service for final mile.
Let's close this once and for all. Amazon is a 3PL. Amazon is a cloud computing company. Amazon is a retailer (Now including bricks and mortar). And, most importantly, if you are in those businesses, Amazon is coming after you.
Read this book and you will see how easy it is to ignore the facts - but you do that at your own peril.