Could Amazon.com Become A Courier?

It sounds strange at first, but it could very well be true.  Amazon is after the momentum that Apple has and are analyzing what they can do to issue more blows to their greatest competitor.  Amazon's next possible move is to become a courier.

Amazon is the world's largest retailer; doing business online with products we have come to love crave for.  The kindle fire sold an estimated $5 million units last year and is doing well the first quarter of 2012.  The company sell e-books by the millions and has control of this  specialty market.  The online business industry grew over 15% and Amazon is one reason why.  The online giant shows dominance in the retail world.

A recent Forbes reported how Amazon already performs Fed-ex like services to its' customers.  They provide third-party logistic services to businesses that utilize Amazon for selling their products.  They also spent over $4 billion last year building 17 fulfillment centers.  This enabled Amazon to offer their retail business clients warehousing and shipping services for product stored.  According to the Mercent Corporation, online sales specialty company, Amazon commissions about 10 percent on any item sold by a third party as 100 percent profit and also charges fees to those same retailers that utilize their warehousing.

Amazon is providing services just like shipping giant Fed Ex, which is a global courier.  Colin Gillis, a BGC Partners LP analyst, stated in an interview, "They're building out fulfillment because they realize that fast and predictable delivery of product is a huge driver of their business".  Essentially, Amazon can meet all their customers' needs.  The only service left is the actual physical transportation and product delivery.  It would make sense to gradually begin to deliver their products to the end user themselves.  The Forbes report mentions Amazon is testing pick up stations where customers can have packages delivered.  

Either way, Amazon's success is only complete when that product arrives at the customer's front door.  Even if Amazon does not involve itself in delivering product themselves, the consumer wants it fast and desires no delays in their shipment.  This type of fulfillment within the supply chain is ideal for using couriers like A-1 Express The company is a nationwide courier and can provide same-day delivery, which is very beneficial when it comes not only the order fulfillment, but shipment returns and replacements.    

References:  3.24.12, San Francisco Chronicle, Danielle Kucera, Associated Press-Amazon.com wrings profit from fulfillment. 3.26.12, Forbes, Michael Canellos-Will Amazon Become The Next FedEx?

Prescription Drug Distributor Set To Buy Courier

The prescription drug industry may not be as headlined as others when it comes to shipping, but this time it has.  AmerisourceBergan has released they will buy World Courier Group for $520 million in cash to increase their market in North America and abroad.

In the recent Business Journal report, AmerisourceBergan's primary strategy for the purchase is to increase their service range to drug manufacturers.  “The acquisition of World Courier adds a new premium specialty service to our existing portfolio of market leading pharmaceutical manufacturer services,” said president and CEO of AmerisourceBergen Steven Collis. “The addition of World Courier’s unique capabilities and expertise to our existing commercialization services further strengthens our offerings to global pharmaceutical manufacturers, and provides an established platform for the introduction of our specialty services outside North America.” 

The prescription drug giant expects the buy to impact their 2012 sales right out the gate.  World Courier Group forecasts to bring $500 million in revenue this year.  World Courier Group is a logistics specialty courier in the biopharmaceutical industry, providing deliveries of prescription drugs, blood samples, medical supplies, and machines.  AmerisourceBergen's deal is set to close around June.

The buyout constitutes the benefits of courier use.  In most cases, companies within the industry, not only distributors, but hospitals and medical technology firms, require deliveries that have to be shipped on-demand and rapidly.  The shipments are very critical can mean life or death for customers and patients.  This includes sending couriers to deliver medicine to jails, prisons, and nursing homes daily.    

Without question, courier services are necessary in the industry and will continue to thrive.  Courier Services such as A-1 Express can be trusted to help prescription drug distributors with same-day deliveries on a regular basis and can provide these on-demand services nationwide.  The move by AmerisourceBergan appears to be a great move and could be the beginning of more drug industry shipping initiatives.  It definitely shows couriers are the perfect fit for servicing prescription drug companies and the medical industry worldwide. 

References:  3.6.12, Philadelphia Business Journal, John George, AmerisourceBergen to buy World Courier for $520M

Same Day Car Part Distribution

Cars. Most of us have them and most of us need them. And while we enjoy their performance on the road, it's what's inside of them that gets us where we need to go. Parts. Without vehicle parts, cars could not be manufactured or repaired. These necessary parts build the vehicles we have come to rely on everyday.

Same-day car part distribution has proven to be an asset in doing business today. From car manufacturers and repair facilities, to auto part retailers, there are many benefits for every group within the part supply chain with implementing an effective same-day car part distribution system.

1. Customer Satisfaction - Whether your company is the manufacturer or a reseller, the end user is the customer to ultimately satisfy. Same-day part distribution achieves the goal of obtaining and maintaining a satisfied customer base. Therefore, your can provide optimal service to your customers.

2. Real-Time Demand - Companies can meet on-demand expectations, especially if emergencies occur and a part is needed quickly. With this type of distribution system, you can know real-time when the parts you need will be in your hands.

3. Inventory Reduction - Same-day part distribution lowers the costs of warehousing part inventory. As a result, various cost savings on vehicle parts and repair labor are made available for your company.

4. Minimize Transportation Costs - Upon factoring all variables of handling your own part distribution operation, transportation costs can be reduced and a courier may prove to be more cost effective to handle your same-day part distribution. It will positively effect any reverse logistics you may need as well. 5. Increase Operation Efficiency - With having a same-day distribution for your parts, operation efficiency increases. It allows more time for your personnel to devote to making your core competencies even better.

A-1 Express Delivery Service, Inc. is the recognized leading provider of same-day transportation and distribution services across the country. If you need same-day vehicle part distribution, we can do this for you. We have a customer base where we currently provide this same type of service need. Same-day service is our expertise and we successfully deliver nationwide. We provide tracking visibility from origin to destination. We have a customer and service-focused operation coupled with the latest real-time information management technology. We understand today's business. We understand that technology is a major component to achieving optimal logistics distribution. We also understand you not only need the parts, but more importantly, your customer needs them also. We provide excellent customer service and perform our deliveries fast! Allow A-1 Express to be a part of your distribution success today!