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Barbmat Barbmat
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5 years ago
Discuss the Last Mile Supply Chain Problem faced by e-commerce companies like Amazon.
Textbook 
Managing Supply Chain and Operations: An Integrative Approach

Managing Supply Chain and Operations: An Integrative Approach


Edition: 2nd
Authors:
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5 years ago
 Providing inexpensive and fast shipping has become the battleground as competition heats and among e-commerce companies and also between e-commerce companies and traditional brick-and-mortar retailers. Companies like Amazon are pursuing same-day shipping and/or charging consumers a small annual fee in return for faster and sometimes free shipping.
The last mile supply chain problem has to do with shipping directly to a consumer's doorstep rather than to a retailer storefront creates a lot of variability. This coupled with increasing reports of stolen packages from consumer's doorsteps, has resulted in added costs. In addition, routing of direct-to-home deliveries changes so frequently that carriers can never rely on the same routes twice. This variability in delivering to a consumer's doorstep in what is commonly called the last mile supply chain drives up the costs of logistics for a company. For many companies like Amazon, the cost of shipping goods to consumer's doorsteps are rising more rapidly than what fees the companies are able to charge consumers for faster and more reliable shipping services.
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