Reference no: EM131211438

Taking advantage of one of the highest growing expenses

Embry Riddle Aeronautical University

With the demand for electronic trading the demand for cheaper delivery of products has grown. Companies have made it essential to find better ways to deliver customer orders in the least amount of time possible with lower cost. As the leading e-commerce company Amazon is looking into new innovative measures to satisfy their customers. With the improvement for bettercustomer service and better product prices Amazon is improving the delivery of products to customers. Amazon's expansion and growth in the logistics market reveal the company's strategy to reduce operation costs and realize on-time product delivery. The company has made a move to expand its air cargo network to replace its current transportation resources. This new strategy will allow the company to achieve its fast delivery objectives to its growing customer purchases.

The purpose of this research is to study Amazon's logistics management strategy with the opening of their own air delivery service and its impact on the company.This study presents the Amazon's logistic strategy in air cargo.  The researchexamines how the company is implementing the logistics strategy and its overall impacts on different business units of the company specifically the supply chain. The effectiveness of the logistics strategy is evaluated to determine whether it meets the company's objectives. The company's logistics strategy aims at reducing transport costs and reduces the delivery time of products to the customers. "Creating an air transportation network is expanding our capacity to ensure great delivery speeds for our Prime members for years to come," Dave Clark, Amazon's Senior Vice President of worldwide operations. Amazons announcement in August has limited the pros and cons available for the analysis for their business model.