Day: October 9, 2018

Amazon’s Delivery Dream Becomes Your Nightmare

The World Is Always Changing, Even the Way We Deliver Goods.
The World Is Always Changing, Even the Way We Deliver Goods.

While Amazon has grown from a simple bookseller to a retailing behemoth, motorized trailer dollies have not been an item normally associated with the company. That may be changing as Amazon steadily works to fulfill its dream of becoming a package delivery service.

So what does this ambition mean for FedEx, UPS and other shipping mainstays? If Amazon’s track record of success is any indication, the news isn’t good.

A New Player in the Package Delivery Industry?

Amazon has continued to pay lip service to its partnership with FedEx and other delivery services, saying that its own shipping infrastructure is merely a supplement to handle excess demand. But as the online giant continues to build a network of warehouses, package sorting centers, airplanes and truck trailers, the endgame is hard to deny.

Securities filings show that in 2017, Amazon spent $13.2 billion on building its logistics networks. That amount is five times the comparable expenditures in 2015 and more than double the capital spending of both FedEx and UPS last year.

Meeting FedEx and UPS Head-On

If there was still any doubt about Amazon’s intentions, the company struck a direct blow earlier this year with the rollout of Shipping with Amazon in the Los Angeles area. While the service currently handles deliveries only for Amazon’s third-party vendors, it’s anticipated that the company will eventually move to include other cities and customers.

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Tesla’s Smart Self-Driving Semis Boon or Safety Hazard?

Direction Choices
Self-Driving Semis, Boon or Safety Hazard?

Do your terminal tractors need to stay out of the way of Tesla semis? Tesla’s new self-driving semis have a reputation for faster acceleration, even uphill. But how does this translate into on-the-road safety?

A New Breed of Semi

The Tesla company has reported many advantages of using its autonomous vehicles. They won’t jackknife; they go faster uphill – but will they have problems slowing down? The typical 18-wheeler is known for its propensity to runaway downhill. It reaches speeds that defy engine braking, experiences decreased braking force from air brake pressure loss (though this is less likely on modern haulers), and experiences drum fade with prolonged braking.

However, the Tesla semi is a different animal, with no gears/gearbox, and electric motors on drive axles for producing regenerative braking power.

Are ‘Regenerative’ Capabilities Enough?

Regenerative braking provides braking forces to 8-of-18 wheels, but doesn’t eliminate air pressure loss or brake drum fade. On an 80,000-pound, fully-loaded semi, will regenerative braking prove sufficient? Eight-million-pound diesel-electric freight trains utilize a similar stopping process with their dynamic braking systems, and store the friction-generated power in a battery. And as with Tesla’s autonomous semi’s, when used in conjunction with air brakes, it provides reliable speed control, which is relied upon in areas with heavy grades.

There’s No Replacement for Safe Driving

Though it remains unknown how Tesla semis in Autosteer will fare with steep downhills, due to their ability to accelerate faster, this will land the semis into more situations where speed is carried into the downhill leg. While in total, it’s likely there will be fewer runaway Tesla self-driving semis, there may be some.

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Amazon’s New Logistics Model Focuses on Contracted Small Fleet Delivery Agents

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Amazon’s New Logistics Model Focuses on Small Fleet Contracts

Will your terminal tractors soon be toting goods for Amazon shipping entrepreneurs? Amazon is instituting a new division, Delivery Service Partners, formed to help hundreds of entrepreneurs across the U.S. create their own Amazon shipping businesses.

Prime Opportunity

A fair percentage of Amazon deliveries are already made by independent contractors who participate in the company’s Uber-like ‘Flex’ program. However, instead of unmarked uniforms and varied and unrecognizable vehicles, with the Delivery Service Partners model soon to begin, small fleets of employees from contracted carriers will now fly Amazon-branded uniforms and ‘Prime’-bannered Sprinter trucks.

Prime Benefits

Amazon plans to keep startup costs as low as $10,000, and has set aside $1-million in financial assistance to encourage military veterans to take up the challenge, a segment the company sees as an ideal match: Those with a cultural, leadership mindset who enjoy being out in the community around people. Amazon plans to keep each company small, with 20-40 vehicles, allowing for a more manageable owner/operator setup. The ‘Zon will provide the goods for delivery, back-end infrastructure and management assistance, help with taxes and payroll, and discounts on truck leasing, fuel, and insurance.

Prime Pay

Amazon estimates the potential for $300,000 profit annually, based on delivery volume. Those involved in the Delivery Service Partners beta test have already expressed happiness with the opportunity for a great, steady income with benefits and paid-time-off, unlike the Flex setup’s absent benefits and competition for customers and sales.

Prime Ultimatum

As Amazon’s shipping services expand, the possibility of it taking on FedEx, UPS, and USPS seems inevitable.

Looking to get in on something new? Shave time off product shipments and take a load off labor with the help of terminal tractors from DJ Products today.

New Cold Storage Warehouse Construction Focuses on Technology and Regionalization

Workers In Distribution Warehouse
Changes Are Coming to Warehouse Construction.

While our industrial tugs are sturdy and versatile enough to accommodate a wide range of uses, cold storage warehouses and distribution centers are subject to factors different from those that affect other types of facilities.

What trends are currently shaping cold storage warehouse construction? Here’s a look at six major topics that are influencing the industry today.

1. A Shift to Regional Distribution Centers

Online shopping has expanded the reach of smaller brands, but companies can’t afford to sacrifice freshness of product to meet delivery demands. As a result, many sellers are creating smaller, locally-based distribution centers that are supplied by redistribution services.

2. Upgrades in Employee Amenities

The shrinking labor pool and harsh working conditions make cold storage warehouse jobs difficult to fill. Companies are implementing perks such as onsite meals and recreation to make employment more attractive.

3. Acquisitions

As in many industries, larger cold storage companies with more resources are buying up smaller ones. With more at stake, these companies are prioritizing high standards and streamlined operations.

4. Technology

Improvements in technology allow for better accuracy and efficiency in every stage of cold storage facilities, from design and construction to day-to-day operations.

5. Threat of Steel Tariffs

Steel is used extensively throughout cold storage facilities, so it’s no surprise that tariffs would cause higher costs and delayed construction.

6. Packaged Refrigeration

Packaged refrigeration is a part of a green initiative that many cold storage facilities are incorporating to move away from ozone-depleting refrigerants.

Industrial Tugs for All Uses

What do warehouses, fulfillment centers and cold storage have in common? DJ Products has a variety of industrial tugs to solve any needs. Visit our website or call 800.686.2651 to learn more about our electric pushers and movers.