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Has the ‘Amazon Effect’ Hit You?

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Port of Long Beach Deputy Executive Director Dr Noel Hacegaba has characterized the wave of generational change as witnessed by ports and terminals globally as the enigmatic ‘Amazon effect’, showing how new logistics standards are drastically reworking the expectations levelled at ports.

Dr Hacegaba utilized the phrase in a technical paper which is due for publication in Edition 82 of The Journal of Ports & Terminals to be released on February 21st, 2019.

Read Edition 81 of the Journal of Ports & Terminals, the first ever digitally optimized e-Journal PTI has produced

Writing in his paper for Edition 82, Dr Hacegaba stated: “One of the major factors driving the need for end-to-end supply chain efficiency is Amazon and its ongoing quest to deliver products in the fastest and most reliable and cost-effective manner. 

“Also referred to as the ‘Amazon effect’, the emergence of e-commerce is shifting consumer behaviour and, with that, their expectations of their online order and delivery experience.”

The ‘Amazon Effect’ has also been a key foundation stone behind PTI’s plans for the Container Terminal Automation Conference (CTAC) 2019, which is due to address how port-centric logistics, artificial intelligence, and optimal automation practices can help terminals in delivering performance, thereby becoming the winners of the future.

 

 

Dr Hacegaba added: “Each year, the number of online shoppers and the frequency of their purchases grows exponentially. In fact, retail e-commerce sales worldwide are forecast to double in the next five years. 

“Amazon’s introduction of its Prime membership service is driving even more online shopping and, with that, more efficient ways to deliver goods to consumers more quickly and reliably.

“As a result, speed-to-market and precision are more important than ever before… [and] access to containers and quick, reliable transportation of the container is necessary to meet today’s ‘last mile’ requirements.”

Read Dr Hacegaba’s previous PTI papers

Dr Hacegaba concluded by stating ports are now being challenged to awaken to these demands and thereby evolve: “The massive expansion of e-commerce is changing the way goods are transported in the ‘last mile’ but ‘last mile’ delivery has to be supported by ‘first mile’ transportation and every mile in-between, including transport from the manufacturing firm, to the port of origin and to the port of destination.

“In order to achieve supply chain efficiencies, investments in physical infrastructure and operational enhancements are necessary but, by themselves, not sufficient… Ports can play a critical role in facilitating the digital transformation.”

You can read Dr Hacegaba’s upcoming paper in full in the next edition of The Journal of Ports & Terminals, which is entitled: ‘Port-Centric Logistics, the e-Journal’.  

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