May 19, 2020

Is Amazon getting into the airfreight logistics business?

Amazon
Supply Chain
Logistics
3PL
Cinch Translations
2 min
Is Amazon getting into the airfreight logistics business?

With its lightning speed and a marketplace network that has revolutionized ecommerce, Amazon is already known as a logistical powerhouse. Now details are emerging to suggest that Amazon could be getting ready to bring its logistics fully in-house, giving the company the power and control to improve its supply chain and delivery times even further.

RELATED CONTENT: Secrets of the Amazon(.com)

According to several reports, this month Amazon commenced with talks to lease 20 cargo planes. This is a move that would give Amazon full control over its transportation costs and its fulfillment schedules, by allowing the company to cut out the 3PL airfreight services that it currently relies on—services that, as these reports point out, have caused frustrations beyond Amazon’s control in the past:

Amazon would be able to sidestep carriers like UPS and FedEx to avoid the shipment delays that it has previously dealt with (most notably during the 2013 holiday season, when many customers didn't receive orders in time for Christmas). 

Vertically integrating a new piece of your supply chain is always a risk. Any problems or failures as the company adjusts will fall directly on its own shoulders. But a successful rollout could come with significant rewards, especially if Amazon eventually turns its in-house logistics program outward to take on the 3PL market as a competitor:

"Similar to the gradual roll-out of [Amazon Web Services], we would expect Amazon to introduce competitive transportation and logistics services to external clients on an incremental basis, with a long-term focus," [Baird Equity Research analyst Colin] Sebastian writes. "Amazon may be the only company with the fulfillment/distribution sophistication and scale to compete effectively with incumbent service providers (UPS, FedEx)."

RELATED CONTENT: 8 Ways Amazon's Customer Service Beats the Competition

Based on the success of AWS, analysts predict that an Amazon-run logistics service could be valued at as much as a $400-450 billion. But that’s a long way off. First Amazon will have to prove that it can handle this side of logistics within its own fulfillment chain.

 

[SOURCE: Business Insider]

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May 14, 2021

Driving Federal IT Transformation

U.S Air Force
Dell
Dell Technologies
2 min
Dell Technologies and the USAF: partners in IT modernization.

Dell Technologies and the U.S. Air Force have a longstanding partnership. On several programs of record, Dell Technologies supports mission-oriented areas, including providing data-centric applications for platforms that the Air Force leverages in testing and operations. For example, certain high-performance jet fighters rely on Dell Technologies software that helps provide critical information about aircraft performance to the service and the aircraft manufacturer. After a test flight, data modules gathered from the aircraft’s sensors are downloaded, processed and analyzed to provide critical insights.

The Air Force has also made a concerted effort to drive technology to the edge so that warfighters can gain value from their data where it lives. Dell Technologies is enabling dynamic decision-making at the edge, where collection, management, analysis, and the distribution of data is critical. Dell Technologies’ software factories are supporting some of the largest Air Force programs, like Kessel Run and Kobayashi Maru.

Kobayashi Maru is a cloud-based program designed to modernize the way the Air Force (now the U.S. Space Force) interacts with its allies. By the time Kobayashi Maru was a program, the service had a year or two of experience with the highly successful Kessel Run. According to the Air Force, this continuous user-centered approach enabled warfighters to quickly evaluate software improvements, provide direct feedback to Kessel Run developers, and rapidly iterate the software to provide maximum value and impact. Kobayashi Maru operates under the same principle: the existing software procurement process is too slow to satisfy requirements, so leverage best practices and partner with industry (in this case, Dell Technologies) to get new systems into the field as quickly as possible.

The U.S. Air Force is committed to IT modernization, as exemplified by its ability to embrace change and transformation in how critical systems are procured and deployed. And Dell Technologies is committed to supporting the Air Force in its endeavors, so the service will always be ready for what’s next.

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