What can the transport industry learn from logistics giants like Amazon?

The first months of 2019 have already passed, but here in the Netherlands, the Intertraffic team is still fresh and working hard. For us, this year is particularly interesting and full of opportunities. It will soon be time for us to put together the 2020 issue of Intertraffic World magazine, which will be distributed at Intertraffic Amsterdam in April next year. This is one of our priorities and we continue to focus on building the impact of our brand wherever we can. 

As I write this, the Intertraffic team is putting together a roadmap for 2019 to 2024. It is interesting to see that our business is increasingly taking place within an urban environment. I sometimes wonder how companies like Amazon have affected the way that we move around our cities. The field of play for Intertraffic is no longer only about people moving around, but also about logistics. In this era of digitization, Intertraffic will fully embrace logistics – following the example of Amazon, which has transformed itself from simply a book retailer to a master of logistics. I promise you that companies like Amazon will be Intertraffic’s future clients. 

In today’s world of digitization, online companies are increasingly focusing on delivering innovations that make our lives easier. Amazon’s continuous efforts to make product deliveries in the fastest possible times make it a logistics pro, not just a leader in the retail industry.

The company’s own warehouses are strategically placed, moving closer and closer to main metropolitan areas and city centers. As a result, Amazon uses a pure push strategy for the products it stores in its warehouses. On the other hand, it uses a pure pull strategy when it sells the products from third-party sellers.

The interesting thing is that Amazon’s supply chain heavily depends on outsourcing its inventory management. For instance, products that are not frequently purchased or ordered are not stored in regular Amazon warehouses. It may come as a surprise to you that nearly 82% of Amazon’s sales consist of third-party sellers.

If you and your business want to be successful, according to the Balance Small Business website, you must adhere to Amazon’s 14 leadership principles. (It’s really interesting and worth a read – see innovatie-site.nl).

Having read Amazon’s business case, I am convinced. Tomorrow I will log on to the Amazon website using my Intertraffic account, and I will place an online order. That means that Amazon will very quickly be one of our partners. And helpfully, in terms of Amazon’s delivery time, the RAI Convention Centre, where the Intertraffic team is based, is only just outside the city center and easy for Amazon’s small electric vehicles to reach.

Richard Butter is director of traffic technology at RAI Amsterdam and is responsible for Intertraffic worldwide events, www.intertraffic.com