How to Compete with Amazon (Hint: It Starts in the Warehouse)
Amazon CEO, Jeff Bezos, is laughing at retailers and 3PL providers. Why?
Amazon JUST ENTERED the logistics market, officially, and is already THE TOP third-party logistics carrier globally.
Amazon employs 648,000 workers. That’s already more than FedEx (450,000), UPS (481,000) or USPS (497,000).
Amazon has invested heavily into its optimized infrastructure: 390 warehouses, 50 planes, 300 truck power units and 20,000 delivery vans.
Amazon is its own largest parcel carrier.
This leads to a lot of click-bait-y article headlines: “AMAZON IS TAKING OVER THE WORLD!” “WE’RE ALL DOOMED!” Albeit extreme, these ominous headlines would be more accurate if they read “WE’RE ALL DOOMED if we don’t act!”
For retailers, grocers, e-commerce brands, and 3PL providers, the truth is this:
Innovate, or Amazon will devour you.
With significant investments into their logistics capabilities including Amazon Prime Air, Freight, and Flex, the e-commerce giant looks to compete with heavy-weights like FedEx, UPS, and DHL. DHL and FedEx have already announced they will no longer deliver Amazon packages. At the same time, Bezos is eating the lunch of Target, Walmart, and the Grocer/Retail industry, with the acquisition of Whole Foods, the development of Amazon-branded consumer goods, and same-day delivery.
No doubt, Amazon is dominating several industries and threatening to disrupt major enterprises worldwide, but what can competing businesses do to take on the behemoth?
Modernize your Workforce
Most businesses do not have the capital means to entirely replace their human workforce with automated systems and robotics. Equipping your team with a hardware and software stack to improve performance is one way to reduce labor costs and drive down shipping cost & delivery times. WMS & ERP systems increase operational visibility based on inventory, while workforce analytics tools like WorkHero supercharge your workforce to boost productivity, increase accuracy, and drive labor costs down. The path to success against Amazon starts with giving your workforce the proper tools to move quickly and effectively.
Explore a Human + Machine Models: Solutions from Fetch, Locus Robotics, and more, allow robots to assist human workers and improve task speed and accuracy. Robotic solutions, combined with humans that are equipped with efficient IoT wearables, are an effective way to gain competitive advantage and meet consumer expectations.
Upgrade Legacy Technology
51% of employers site outdated technology as a barrier to operational success (Harvard Business Review)
Your workforce likely uses heavy or outdated mobile devices in the front and back of store. Upgrading from smartphones and RF guns to wearable devices can improve task productivity by up to 60% due to the benefits of wrist-worn, ergonomic, user friendly wearable technology.
Chances are your legacy systems are costing you more in productivity than a tech refresh. Newer tech means faster employee on-boarding, satisfaction, and higher efficiency rates.
Take advantage of your Traditional Infrastructure
Utilize Forward Deployed Retail Space to save on shipping cost and increase customer satisfaction.
Double-down on in-store experiences to provide value to Millennial + Gen Z consumers.
Be Proactive
Not all technology investments break the bank and several options are available for both traditional and modernizing businesses to see BIG improvements in efficiency, accuracy and safety.
New Purchasing Models are on the Rise. Seek out OpEx models over CapEx technology to boost margins and invest more capital into your product and customer service.
Amazon isn’t going anywhere, and neither are you if you embark on a path to innovate your operations today. The tools are out there for you to compete and exceed expectations.
If you’d like to learn more about how Rufus is modernizing workforces across the globe, drop us a line at enterprise@rufuslabs.com
