by Maria Hartas, DCMME Graduate Assistant
When looking into ways to expand its logistics operations, Amazon is embracing a “carnival” tent solution. As the company races to keep up with competitors, such as UPS, FedEx and USPS, Amazon has set up fabric tents in at least eight states; Tennessee, South Carolina, Arkansas, Georgia, Colorado, Louisiana, Kentucky and Idaho. These tents operate as temporary delivery stations used for housing and sorting packages before they’re final delivery.
Amazon ships billions of items annually; the company reported 5 billion items shipped with Prime alone in 2017. According to Amazon’s SEC filling, the costs associated with the delivery of all online orders received are growing exponentially as eCommerce activity continues to increase. As Amazon has recruited more deliver service partners (DSPs) to grow the company’s last-mile logistics network, a tent that takes a couple weeks to build enables the rapid expansion in new areas.
The tents are large enough, starting up to 35 feet tall and ranging between 9,000 square feet and 18,000 square feet, and can adequately accommodate up to 300 people. With little-to-no property taxes and little maintenance required, tents are well positioning Amazon to compete in getting closer to customers.
What are the benefits of building tents?
Are tents solving last-mile delivery problems?
Can delivery tents offer Amazon a sustainable competitive advantage?