The distribution strategy adopted by parcel carriers such as FedEx and UPS is an example of an intermodal transport chain. It is usually composed of three steps:
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C.8 – Distribution Facilities
Author: Dr. Jean-Paul Rodrigue Distribution facilities are flow-based structures that aim to consolidate, sort, and deconsolidate cargo to more efficiently service urban markets. 1. Air Hubs Distribution facilities are flow-based intermediate elements of freight distribution with the core purpose of routing cargo toward its destination, often using a hub-and-spoke structure.
Amazon E-Fulfillment Centers by Item
Source: Rodrigue, J-P (2020) “The Distribution Network of Amazon: Analyzing the Footprint of Freight Digitalization”, Journal of Transport Geography, Vol. 88. N=268. An outcome of the diversity of items offered by online retailers such as Amazon is that a large number of e-fulfillment facilities (EFC) are designed not for the
Amazon E-Fulfillment Centers Network
Source: Rodrigue, J-P (2020) “The Distribution Network of Amazon: Analyzing the Footprint of Freight Digitalization”, Journal of Transport Geography, Vol. 88. The locational behavior of Amazon’s e-fulfillment centers (EFC) shows a strong market orientation and relatively uniform distribution of facility sizes with a median footprint of 855,000 square feet. This
E-Fulfillment Center
Amazon Inbound Cross Dock Facilities Network
Source: Adapted from Rodrigue, J-P (2020) “The Distribution Network of Amazon: Analyzing the Footprint of Freight Digitalization”, Journal of Transport Geography, Vol. 88. As of 2022, Amazon’s network of 36 inbound cross-docking facilities (IXD) was positioned in relation to port gateways and corridors, particularly around New York and Los Angeles,
Inbound Cross Dock Facility
Logistics Facilities Supporting E-commerce
Source: Adapted from Rodrigue, J-P (2020) “The Distribution Network of Amazon: Analyzing the Footprint of Freight Digitalization”, Journal of Transport Geography, Vol. 88. The growth of online retail sales incited the development of new logistics structures through a process of functional specialization, particularly since e-commerce is based on parcel deliveries.
C.7 – Procurement and Fulfillment Facilities
Author: Dr. Jean-Paul Rodrigue Procurement and fulfillment represent the first stage in the organization of supply chains and are usually composed of large facilities accessible to international and regional transportation systems. 1. Hierarchy of Urban Facilities City logistics relies on an array of facilities to provide for the handling of
E-Commerce Retail Sales as a Percent of Total Sales, United States
Source: Federal Reserve Bank of St. Louis. E-commerce retail sales in the United States are illustrative of the diffusion of e-commerce, either as a complement or a substitution to conventional retail sales. From a negligible share of less than 1% in early 2000, it steadily grew until around 2015, when