Amazon AGVs

Could Amazon Become a Competitor to FedEx and UPS In the Next Seven Years?

There’s no question about it, ecommerce is here to stay and is only becoming a bigger part of our consumer culture through the onset of COVID-19. While this time is hard on many businesses, ecommerce giant Amazon is thriving and plans to grow their Prime Air fleet from 42 to 200 planes in the next seven or eight years.

Does this mean Amazon could potentially become a competitor to FedEx and UPS? The short answer is, possibly. Prime Air has operated out of smaller regional airports close to their warehouses around the country making it easier to deliver goods. For this reason, some say Amazon will not become a competitor because they have a lack of a central hub and can only offer limited service to a small number of destinations.

However, with the purchase of more planes and a massive investment made in a large hub at Cincinnati/Northern Kentucky Airport, Amazon’s options for domestic delivery will widen.

The supply chain dance between FedEx, UPS and Amazon reflects the constant competition to stay ahead of consumer demand and to be the leader of innovation in the supply chain space.

To keep up with today’s supply chain, organizations of all sizes are moving toward the digital supply chain model. During this transformation, many organizations face some level of a talent skills gap and workforce shortage. MHI’s 2020 Annual Industry Report – Embracing the Digital Mindset compiles the survey results from over 1,000 manufacturing and supply chain professionals and provides insight into the technology innovation taking place across the supply chain industry—and the associated workforce challenges.

Download the 2020 MHI Annual Report and visit MHI view to learn more about today’s supply chain challenges and tomorrow’s disruptive innovation.