The consumer millennial generation is now beginning to focus on the delivery of product and services that will fit in better and support their lifestyle demands. This leaves retailers and the supply chain in a continuation of the next phase of upheaval to the retail marketplace. Amazon has been expanding into the consumer delivery marketplace in order to support and expand their relationship with consumers. Now carriers should be concerned about the impact this entry will have on their business. I anticipate Amazon bringing the same focus on consumer demands and willingness to experiment to the consumer delivery market that they brought to the consumer shopping and purchasing market to continue their disruption of the retail marketplace.
I know that there is a tremendous amount of room for improvement in the consumer delivery market for improvement and consumers, especially millennial consumers, are anxious for change to support their lifestyles. This requires though the type of foundation and infrastructure to collaborate with the end consumer that Amazon has been building since the very beginning. Now with Amazon’s entry into the consumer delivery supply chain they bring those same traits of collaboration, interaction and experimentation to this delivery services that will surely remake the delivery services market. This should worry carriers because of the Amazon impact on the consumer shopping and purchasing marketplace. Amazon does not enter a service or a market without a plan to dominate and the delivery market is no different.
Amazon has already been experimenting with grand delivery concepts in their general practice of experimenting with big ideas. This practice has a large potential to change the consumer delivery practice as their large ideas and concepts have changed the retail shopping and purchasing market. Their trial balloon of delivery with drones follows their retail shopping and purchasing practices by throwing out a concept prior to fully defining the concept. This practice allows the review and development of the concept to begin experimentation. I admire this practice because it allows for development of a large concept in a continuous improvement method that moves the market forward and also allows for tuning and revisions to ensure the concept meets consumer and market demands.
Amazon will work with consumers one step at a time to remake the omni supply chain in much the same way as they worked with consumers to remake the retail shopping and purchasing market. Carriers should be very concerned now about this expansion into the consumer delivery market for two reasons; Amazon has shown the desire and ability to disrupt a market and the consumer delivery market is now ripe for disruption.
And now for the audience participation portion of the show…
ECommerce will have wide ranging impacts on both the retail and manufacturing sectors. How can you focus these abilities to improve the consumer's experience? Improving the consumer’s experience will require a re-evaluation of the sales channels, the manufacturing channels and practices and the supply chain channels and practices from the raw materials to the consumers’ homes. In order to ensure and maintain success in this new reality you must harness the tools and capabilities in many new areas. How can you support these continuously changing requirements?