Over the past several years, Amazon’s transportation innovations have transformed the logistics industry. In fact, Amazon is the only company that has been named on the FreightTech 25 every year since its inception. Most recently, the company ranked third.
Beyond setting a new precedent for quick delivery times, the company has a track record of creating technology driven logistics solutions to meet their own needs – and sharing those solutions with everyone else.
Building a scalable, resilient network
Much like Amazon Web Services (AWS) that grew out of Amazon’s own internal needs, Amazon Freight was born from its efforts to give outside businesses access to the same transportation network Amazon uses. When the company started Amazon Freight, the move opened up Amazon’s transportation network, technology and assets to outside businesses, according to Ari Silkey, General Manager of Amazon Freight.
“We’re proud of the transportation network we’ve built for our Amazon customers, and we want to open that up to all shippers. We want to let everyone use the same technology, the same tools and the same capacity we have created to optimize freight movements,” Silkey said.
With over 60,000 trailers and 20,000 domestic intermodal containers, Amazon Freight is equipped to provide a simple, reliable and flexible transportation option for shippers. The company offers API/EDI integrations and self-service booking, allowing customers to manage their shipments and secure competitive rates across the Amazon network 24/7.
Customer-focused technology gains
While Silkey stressed the importance of technology in managing every leg of Amazon’s supply chain, he also made it clear that the company does not just utilize tech for tech’s sake. The company focuses heavily on creating solutions tailored to customer needs.
Smart trailer sensors, for example, can communicate information about operations and load status. They can tell Amazon if doors are open or tires have low air pressure. This not only gives Amazon valuable information, but minimizes human intervention, which keeps workers safer. Plus, having visibility into the status of each trailer is invaluable, especially during peak seasons when trailer capacity is at its highest levels.
The company also uses AI and other modern technologies to create tools that give operators the information they need to respond to disruptions and keep the network running smoothly. They are starting to deploy a Gen-AI application that gives its support agents a situational summary of the disruption and context-based data so they can quickly coordinate the logistics of the resolution.
By methodically tackling challenges with technology, Amazon Freight is pushing forward innovations that allow the industry to adapt to rapidly evolving demands. This drives the industry and prevents stagnation. What results is a more efficient and flexible Amazon network – and a better network for Amazon is a better network for its customers.
“In an industry that has been around for a while, people sometimes simply settle for the way things are,” Silkey said. “We don’t accept that. We continue to invent and add technology to solve any problem that is out there.”
Sustainability in motion
Silkey emphasized Amazon’s overall continued commitment to sustainability alongside innovation and efficiency. Amazon co-founded the Climate Pledge with their partner Global Optimism to call on others in the business community to join them in reaching net-zero carbon emissions by 2040.
Amazon as a whole is making strides toward that target. Currently, Amazon’s global network includes over 4,400 compressed natural gas (CNG) trucks powered by renewable natural gas and 24,000 electric delivery vehicles for last mile deliveries.
“We know the important role that these solutions can play in reducing carbon emissions,” said Silkey. “Our customers share our passion and we are proud to create greater efficiencies with them.”
As the freight industry faces mounting challenges and opportunities, Amazon Freight offers an inspiring roadmap for achieving scale, efficiency, and sustainability in tandem.
Click here to learn more about Amazon Freight.
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