OPERATIONS

Report: Amazon continues taking control of supply chain

BY Dan Berthiaume

Amazon is reportedly making yet another move seemingly aimed at creating its own logistics network.

According to FreightWaves, Amazon has launched a proprietary digital freight brokerage platform. With the platform, Amazon acts as a broker between shippers and truckers moving its goods. Reportedly, Amazon is offering prices up to 33% below market rates to broker 53-ft. full truckload dry van freight in New York, New Jersey, Pennsylvania, Connecticut, and Maryland.

Amazon rolled out its freight brokerage service one day after announcing it will shift the standard Amazon Prime delivery time down to one da y. In response, a Morgan Stanley analyst predicted Amazon would use one-day shipping as a “Trojan Horse” to create a third-party logistics network.

Other recent moves the e-tail giant has reportedly made to take logistics in-house include introducing a new service known as “Amazon Shipping” that directly delivers packages from sellers to customers, as well as using temporary storage tents to support rapid growth of proprietary deliveries.

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