The biggest companies Amazona and Maersk both made it through supply chain during the pandemic, fight their way through it. One-stop logistics shop is being managed by these two companies; it will be huge help during the supply chain chaos.
The world largest shipping lines been developing every other step of the supply chain. Maersk can organise air freight, warehousing, trucking and last-mile delivery for its customers. Amazon, been handling warehousing and since 2006 last-mile delivery its sellers is expanding further up the supply chain. It aims control over its own logistics, it involved in long-haul trucking, air freight and even charters own ships to move goods and products around the world. It begins moving cargo for companies which does not sell on Amazon but use e-commerce for their giant courier.
Maersk’s and Amazon be competiting against same e-commerce clients and will be selling all-in-one service for acquire products and factory loading put Infront of a customer door. Eytan Buchman written about Maersk’s pivot away from a business model focused solely on shipping.
The company Maersk’s aims to transform to a one-stop logistics shop back in 2016, which is also know as a dark year of shipping. In China and Europe got slow economies and with increase in supply of ships and led to global freight rates to tank which caused Maersk’s profits to go decrease in value, the world seventh shipping line declare bankruptcy.
Since 2016 amazon expanding its supply chain.
Maersk gained $21 billion in profit, which they made during pandemic. In the period pandemic Maersk profit expanded and invested in the field of supply chain, they brought two customer brokerages KGH Customs and Vandegrift. KGH and B2C specialize in Europe, and Vandefrift, Visible SCM focuses on US. Maersk’s ability to bring its clients cargo off get it through the customs which transport to regional warehouses and deliver directly to customers door.
Amazon starts taking control after the disastrous event of 2013 holiday, and Amazon relied on couriers such as FedEx and UPS for their packages. The companies became mainstream and failed to maintain with torrent of gifts of US shoppers which led to extensive delays.
During pandemic accelerated Amaxon’s ambitions to build its own supply chains, they spend around $80 billion a year on logistics infrastructure in the year of 2020 and 2021, the company made its own shipping and own cargo ships. The company replicate the strategy behind (AWS) Amazon Web Services in house division met amazon web hosting needs before selling their service to other companies and becoming largest cloud computing business in the world.
In pandemic both the companies made profit, Maersk gained $21 billion.
Maersk’s and Amazon Arrival with one-stop logistics shop.
Amazon and Maersk control the movement of package and shipping container around the globe. These Two companies have chance to offer a new integrated model of logistics online retailers can outsource their transportation and delivery operations to a single provider.
One-stop logistics manages the entire supply chain and fill the gaps while partnering with local logistics in their network. This shop is sort of as whole logistics service into one package which boots efficiency and lower prices.
In the crisis such as in pandemic fuelled supply chain chaos which is at the present, those clients will be at the mercy of Maersk’s and Amazon decision which cargo to prioritize; which will give companies plenty of pricing power next time the supply chains get upturned.