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What YGCC is Reading #450
Companies Rein In Logistic Strategies with Slowing E-Commerce Growth
During the pandemic, companies crafted expansive strategies to gain greater scale in response to growing e-commerce activity. Some companies looked to establish distribution channels similar to those Amazon has developed over the last two decades. Now that online commerce nears prepandemic levels, companies are learning just how difficult the logistics business is. For example, American Eagle established a subsidiary, Quiet Platforms, in 2021 to expand their logistics operations and spread out its fulfillment costs. This year, American Eagle has been trimming the subsidiary’s workforce aiming to ‘reset expenses to align with current pace of growth.’ Other companies, including Blue Apron and Shopify, have opted to sell their logistics assets.
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How can companies reduce expenses associated with last-mile delivery services?
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What factors should be considered when deciding whether to expand logistic capabilities in house?
Read more from The Wall Street Journal here.
PHOTO: MIKHAIL NILOV/CANVA