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Industrial Manufacturing

Amazon Grows Distribution Network

While traditional retail stores have been in an ever-increasing slide, the company most responsible for their predicament is doing great things.

Released Monday, June 19, 2017

Amazon Grows Distribution Network

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Researched by Industrial Info Resources (Sugar Land, Texas)--While traditional retail stores have been in an ever-increasing slide, the company most responsible for their predicament is doing great things. As more consumers around the world choose to do their shopping online as opposed to brick-and-mortar establishments, those companies in e-commerce face ever increasing needs to deliver the vast amount of goods purchased online with speeded-up delivery times in order to keep those customers happy. To this end, Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington), arguably the leader in the e-commerce field, has several large properties in various stages of development throughout the world to shorten delivery times and enhance customer experiences and satisfaction.

In the U.S. alone, over the past three months, Amazon has begun work on nine fulfillment centers, where packages are picked, packed and shipped, and three sortation centers, where those packages are sorted by zip code and grouped to speed up and enhance delivery options (such as providing weekend or late-night delivery). These centers are spread all over the country, from Miami, Florida and Logan Township, New Jersey, in the east, to Fresno, California, and Troutdale, Oregon, in the west, and several points in between. These ongoing projects represent an investment of more than $1.2 billion, and this is not counting other projects Amazon already has in varying stages of construction or has recently completed.

As the demand for e-commerce grows, the companies that have better delivery times and options will begin to separate themselves from the pack and gain a better market share, leading to more profits in the long run, even though to do so may require a large investment in their warehousing and distribution capabilities. With these new projects in play and more projected in the near term, Amazon is clearly sending a message that it intends to maintain its leadership in in the industry.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at https://www.industrialinfo.com.
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