Amazon, one of the largest and most profitable shipping, fulfillment, and delivery giants in the world is currently feeling some aftershocks of the pandemic.
Earlier in the year during a company earnings call, Amazon CFO Brian Olsavsky speaks to added costs in Q1 due to excess fulfillment, transportation capacity, as well as less efficient warehouses, and inflationary pressure.
Plans for delaying the operations of potentially 16 different locations are in the works with the goal of reducing operational costs.
By doing this Amazon would see a reduction in labor spending. However, it’s key to remember that a lot of these plans are just delays and we could certainly be seeing a reactivation of these warehousing efforts come to fruition next year.
Locations Affected by Cancellations, Delays, or Other:
- Salinas, CA
- Coral Springs, FL
- Chamblee, GA
- Davenport, IA
- Shreveport, LA
- Canton, MS
- Sioux Falls, ND
- Churchill, PA
- Alcoa, TN
- Clarksville, TN
- League City, TX
- Round Rock, TX
- San Antonio, TX
- Waco, TX
- Marriott-Slaterville, UT
- Lawrence, WI
It should be noted that most of the information that is currently available has been made available via local news sources in the affected areas.
The majority of these delays and cancellations seem to come from business decisions made when covid was at its peak. During these times Americans had almost no choice but to order most of their purchases online, which could have had a very direct impact on Amazon’s decisions to expand its capacity.
Amazon places a high priority on opening up fulfillment centers like these in order to cut down on shipping costs for its customers. However, it seems that even a company the size and success of Amazon isn’t immune to supply chain disruptions.
This only goes to reinforce the notion of the volatility and rapid change occurring in companies dealing with shipping, delivery, order management, and fulfillment.
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