Amazon Freight has pivoted to a more regionalized network model in response to the changing consumer landscape, Amazon Freight Director Rebecca Salt said at the F3: Future of Freight Festival.
This shift means products are closer to customers, enabling quicker deliveries and a reduction in transportation miles — a win for both service efficiency and environmental impact.
The company has also significantly expanded its network, now boasting more than 50,000 trailers. This growth reflects a broader commitment to the kind of infrastructure enhancements that open more logistical lanes and options for customers. It’s a strategic move to reduce empty miles, aligning operational goals with the company’s wider Climate Pledge, which aims to reach the Paris Agreement 10 years early and net-zero carbon emissions by 2040.
Salt also discussed the lessons learned from rapid scaling during the pandemic. The crisis highlighted the supply chain’s critical role in daily life and prompted Amazon Freight to collaborate more closely with shippers.
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A survey conducted with FreightWaves earlier in 2023 showed that shippers are seeking more diversity and reliability in their carrier portfolios, calling for enhanced flexibility and customer service.
“What shippers are looking for is a carrier that, when there’s volatility or when there’s an issue in the supply chain, they’re asking, ‘How can I help? What can I do to support?’” Salt said.
Amazon Freight’s focus remains firmly on customer needs, prioritizing a dynamic and flexible supply chain. The company’s growth strategy involves integrating more assets into its network, allowing for increased reliability and responsiveness to market volatility. Salt’s presentation illustrated how Amazon Freight is steering the evolution of the industry by centering on customer-centric innovation and robust technological integration.
Leveraging technology for network efficiency and customer service
Amazon Freight’s strides in technology integration have become a cornerstone of its strategy. The insights from the FreightWaves survey reveal a shift in shippers’ priorities toward carriers that offer not only reliability but also the agility to adapt to dynamic market conditions.
The persistence of traditional methods like email for load bookings, as highlighted by Salt, marks a significant opportunity in the industry. It underscores a latent potential for more sophisticated tech adoption that can streamline operations and elevate supply chain visibility.
In response, Amazon Freight is pioneering the move toward advanced booking portals and integrated tech solutions. These efforts look to enrich the customer experience and reflect Amazon Freight’s commitment to fostering a customer-focused, responsive service environment.
The introduction of Amazon Shipping — Amazon’s new parcel delivery service — mirrors this dedication to innovation. This service complements the full truckload offerings, leveraging Amazon’s extensive network to deliver speed and reliability.
Concurrently, an intermodal transport pilot is indicative of the company’s approach. It looks to innovate deliberately based on customer feedback, which helps ensure the final product meets the market’s needs and preferences.
This is the balancing act for Amazon Freight: a tightrope between steadfast reliability and the flexibility required to navigate the freight sector’s fluctuations.
Market projections and commitment to sustainability
Salt delved into Amazon’s strategic pivot toward sustainability, a commitment that permeates every facet of its operation. This push for environmental stewardship is exemplified by the ambitious goal set forth in the Climate Pledge: to achieve net-zero carbon by 2040.
Amazon’s strategy includes a fleet of renewable natural gas vehicles and, notably, a foray into electrified trucking —in the EU — signaling a robust effort to slash carbon emissions.
“In every planning doc that anybody writes — doesn’t matter where you are in the company — you always have to have a question … about sustainability,” Salt said. “We’re not just investing on the road; there’s a lot of investment, for example, in the air side as well.”