Theses and Dissertations
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- Creators: Department of Supply Chain Management
The once thriving American textile industry has been offshored almost entirely. The few domestic mills that remain tend to be specialized; there is no dominant player. As the global environment becomes increasingly unpredictable, the benefits of offshoring are lessening. Raising concerns over sustainability, employee welfare and intellectual property have the potential to shift the current pattern of offshoring. Impulsive tariffs and rising international wages add to the uncertainty. To eliminate many of these concerns, new textile mills should be developed in the United States. Many businesses have expressed desire and need for a new American mill to help them meet their goals. Due to strict regulations, domestic production is inherently more environmentally and socially proactive. In order for this mill to succeed, it must be based on automation and sustainable practices.
This paper analyzes why Amazon can further deploy its last mile by partnering with Uber for the short term. By utilizing Uber’s large transactional repository and subject matter expertise on meal delivery, Amazon can refine its short-term solutions, limit inherent risks, and maintain customer satisfaction. Uber stands to profit from the partnership by locking in the necessary demand volume to become profitable, while limiting its marketing expenses and lowering the cost per mile traveled. Uber Drivers will have more “jobs” available to remain logged into Uber’s platform and have the ability to execute multiple deliveries in parallel while having to drive less miles. Amazon already has the necessary physical infrastructure to dispatch packages and would barely need to adjust current operations, considering that all last-mile deliveries are executed by contractors in vans and standard sedans. Likewise, Uber would adapt quickly since its service-level monitoring of over 200,000 restaurants would be reduced to only one stakeholder and routes would often originate at the same point. Lastly, Amazon will not have to continue investing in additional equipment, as drivers will drive their own cars and utilize the Uber platform and its refined safety features.
The arrangement of this thesis is as follows: Chapter 1 will provide background information and list the complexities of last mile delivery. Chapter 2, Amazon’s Competitive Environment, will investigate Amazon’s external risks from a competitive analysis standpoint. Chapter 3 will cover how Amazon has leveraged the gig-economy to deliver its last-mile. Chapter 4 will dive into Uber’s threats and weak financial standing. Finally, Chapter 5 will conclude with the incentives and success metrics that support the proposed partnership.