3 ms·
(Apologies, maybe i should have posted this as its own blog post...but meh, too late, I've posted it here...) So...maybe it might be silly of me to ask, but wh
by mxuribe 9y ago
(Apologies, maybe i should have posted this as its own blog post...but meh, too late, I've posted it here...)
So...maybe it might be silly of me to ask, but why aren't FedEx and UPS attempting to encroach into (at least some of) Amazon's territory? For example, FedEx and UPS could make plays to compete with the AWS/IaaS offering. Oh, i know they would trail far behind AWS for several years - including trailing after google and microsft for that matter - but recall that amazon built their infrastructure for their benefit, and it was only later began selling it to others. I suppose even if FedEx, UPS don't become leaders in the IaaS industry, at least, if they get enough big customers, that would give them massive economies of scale that benefits their core parcel delivery business. Also, beyond simply delivery, what else can these guys do - either to fight Amazon, or build new business for themselves? Here are my admittedly outlandish steps for FedEx, UPS to compete with amazon and build new businesses...
Step 1: Change from a company that only ships packages to one that ships packages and datagrams. Basically, build up their tech infrastructure like what amazon did to eventually offer aws. This would enable them to reap plenty of cost-savings over time. Then build up enough to sell to other customers for the long-term; just like Amazon did. (Even if their platform is not as developer-friendly as AWS, they could target legacy-type enterprises.)
Step 2: Add services where regular, paper mail is received, scanned in, and delivered electronically to the recipient. Now, this may not be novel, as I know there are already services like this that exist: but this would be implemented on a massive scale...at least until most of humanity's correspondence eventually becomes all digital. I'd like to clarify that I'm of the very paranoid type of person, and would not like this service at all for privacy implications...But i have to acknowledge that there are plenty of people who have no issues with this, and/or in some cases greatly benefit from such a service - one example i can think of: military personnel receiving their regular mail via this service while they are abroad serving.
Step 3: I think UPS already does some of the following to some degree (not sure about FedEx), but add warehousing and other distributor-type support activities. Basically move up the supply chain. This positions FedEx, UPS from "just the delivery company", to a strategic partner who "gets my company's products over to my customers". This turns these guys from simply a delivery company into a "logistics, data, and delivery" partner.
Step 4: Now this one is ambitious...Add wide-scale, high-production 3-d printing of products. Now, admittedly, there are alot of constraints around this, such as but not limited to the products being printed couldn't be so complex. But if all we're talking about is something simple like hair combs, etc., then why couldn't FedEX, UPS become the producers of such products, and deliver them for me. I come up with ideas for products, submit some 3d printer design files into some sort of FedEx or UPS receiving system, and FedEx, UPS both produces them and delivers them. Some might ask, but couldn't i just purchase my own 3d printer and produce my own hair comb, etc.? Yes, but I'm talking here about massive scale of production. As a product company, if i can save tons of money by having my products produced somewhat local to me, which might avoid transit (especially trans-oceanic) costs, and then delivered by the same company, i can imagine it might save plenty of money across much of the supply (and delivery) chain. Again, it may not apply to all product categories, but i can see a future for a company to be an ad hoc manufacturing provider.
(Again, apologies for the length of my post here.)