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Amazon’s Last-Mile Delivery Service for Groceries, Medicines, and More

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Since late 2013, Amazon has been launching a distribution network of delivery stations. These delivery stations are positioned within larger metropolitan cities across the country. The delivery stations’ primary role is to sort packages for outbound routes to enable last-mile delivery to customers within a tightly defined urban area. Multiple local courier companies contracted by Amazon and independent Amazon Flex drivers have often performed last-mile delivery services. These deliveries may consist of multi-temperature fresh food being delivered on a same-day basis to markets where AmazonFresh is up and running.

The expansion of Amazon’s last-mile delivery service threatens traditional drugstores. This case aims at teaching students to evaluate the impact of Amazon’s last-mile delivery service on a medium-sized pharmacy chain in NYC and Long Island, and what the pharmacy can do to respond to Amazon’s future expansion in the Long Island region.

Learning Objective:

Students will learn the following:

  1. Gain a basic understanding of pharmacies and Amazon’s last-mile delivery strategy.
  2. Acquire basic knowledge of geospatial data pre-processing, visualization, and analysis using ArcGIS Python API and ArcGIS Online.
  3. Take the consultant role and help customers make business decisions empowered by geospatial data analysis.

Year of Publication: 2023
Ref. No.: 22/751C
Discipline: Production & Operations Management
Industry: Consumer Goods, Food, Beverage & Tobacco, Retail & Wholesale
Country: United States of America
Company: Amazon
Languages: English
Pages of Text: 10