Amazon Becomes a Competitor to Nearly All Businesses in the New E-commerce Supply Chain

Amazon is Moving Into More Verticals Impacting Sales
Amazon is Moving Into More Verticals Impacting Sales

There’s a good chance your business relies on Amazon services one way or another. It’s even more likely that you view Amazon Fulfillment as a competitor. One recent survey showed that 92% of distributors are feeling pressure from the online behemoth.

As the supply chain faces increasing pressure these days, how is your warehouse keeping up? Whether it’s picking merchandise faster with fancy robots or moving trailers around the yard more efficiently with a semi truck tow dolly, everyone needs to find an edge.

Top-of-mind concerns for distributors in 2018, according to Supply Chain Dive, include:

– Emerging technology

– Online sales

– Outsourced warehousing

– Regulatory effects on pricing

Constant change is the new norm. Amazon’s acquisitions frequently remake the landscape. Distributors find themselves partnering with Amazon Fulfillment even as the company feels like a competitive pressure. It’s becoming more likely that your warehouse serves as a commerce distribution center rather than a transport service for shipping goods to brick-and-mortar stores.

So, what does all this mean? The supply chain industry must operate as efficiently as possible while embracing new technology and equipment to stay lean.

Ship Faster with a Better Terminal Tractor

Speedy warehouses are only effective when the products can get on the road faster. Are you paying licensed shunt truck drivers to move trailers in and around the docks?

A highly maneuverable semi truck tow dolly like our TrailerCaddy Electric Yard Dog makes quick work of moving trailers. It’s safer, faster, less expensive to buy, and less expensive to operate.

Find out what the TrailerCaddy semi truck tow dolly can do to streamline your warehouse distribution and help your business operate as efficiently as the online giants. Contact DJ Products for a free demo or more info.

Increase in E-Commerce Creates a Booming Demand for Warehouse Space

Increase in E-Commerce Creates a Booming Demand for Warehouse Space
Increase in E-Commerce Creates a Booming Demand for Warehouse Space

As foot traffic in brick-and-mortar stores continues to decline, commercial real estate is being hit hard by mall closings. But that’s good news for warehouse landlords, who are seeing an increase in demand driven by the rise in online shopping.

Warehouses: The Hot New Real Estate Properties

Most retail properties are controlled by real estate investment trusts, also known as REITs. Retail store closings and bankruptcies have caused retail REITs to drop nearly 20 percent in early 2017.

On the other hand, industrial REITs that control warehouses are benefitting from a demand that outstrips current supply. Jonathan Petersen, analyst for global investment banking firm Jeffries, says the shift to e-commerce has caused price targets for industrial REITs to be raised across the board.

According to industry estimates, online retailers require three times as much warehouse space as traditional brick-and-mortar retailers. Peterson explains that e-commerce makes up 10 percent of retail sales, and simply doubling their share would create a need for 600 million square feet of new warehouses.

What Does the Future Hold?

The increase in e-commerce and warehouse demand is more than just a cyclical event. Peterson goes on to say that he and Jeffries see it as the beginning of a “secular growth trend” that’s expected to continue for several years.

Electric Industrial Tugs from DJ Products

As warehouse use increases, efficient operations will be more vital than ever. Industrial tugs such as our CartCaddyShorty let a single employee move loads of up to 3,000 pounds quickly and safely.

Visit our website and let our cheerful sales engineers help you find the right industrial tugs for your applications.