Prime Day's peaks bring supply chain dilemma for delivery networks

Prime Day’s peaks bring supply chain dilemma for delivery networks

July 15, 2019

As today is Amazon Prime Day, when consumers in their millions are expected to flock online for deals, what does this short, sharp peak in demand mean for the thousands of logistics businesses, big and small, which make up the Amazon delivery network?

Mohit Paul, senior vice president EMEA a BluJay Solutions, a leading provider of supply chain software and services. explores the pressures and risks associated with Prime Day for delivery networks. He also considers how businesses can turn these challenges into opportunities to revolutionise their supply chain.

“More than 100 million products will be on special offers during Amazon Prime Day, and the volume of deliveries passing through the logistics network in this week alone is expected to create an unusually peaked season for all the supply chain. High volume of transactions in such a short duration, coupled with intense pressure from consumer expectations, mean that Prime Day can be ‘make or break’ for small to medium businesses,” he says.

“With such a challenge on their hands, delivery businesses must harness opportunities for collaboration and streamlined workflow. Otherwise, Prime Day can seem like a risk to revenue rather than an opportunity to profit. Supply chain inefficiencies cost UK businesses trading abroad approximately £1.5 billion per year. With the right multi-carrier parcel technology solution, businesses can respond to changing shipping demands seamlessly, enabling them to easily scale and increase shipping volume for peaks such as this. This technology also provides visibility and helps prevent friction in the supply chain by reducing error rates and improving parcel shipping times.

“Prime Day has become such a big event in the retail calendar that some businesses are feeling pressured to get involved, or risk missing out. But without an efficient and streamlined logistics operation, they may struggle to deliver the fast, convenient delivery modern consumers expect. Otherwise, parcel handlers may find themselves with a little more than they can handle, this Prime Day.”

James Graham

James Graham is an award-winning transport media journalist with a long background in the commercial freight sector, including commercial aviation and the aviation supply chain. He was the initial Air Cargo Week journalist and retuned later for a stint as editor. He continues his association as editor of the monthly supplements. He has reported for the newspaper from global locations as well as the UK.