Supply Chain Digital Magazine January 2023 | Page 15

Logistics sector eyes Amazon retail job cuts with concern

Amazon ' s plans to lay off around 10,000 corporate and technology jobs – 3 % of its workforce – has sparked concerns it is set to begin axing roles in logistics .
The cuts include Amazon ’ s retail division , which is responsible for online shopping , physical retail and a chunk of the firm ’ s logistics operations .
Amazon has scaled back its logistics operations in recent months . The company has delayed , or is closing , 60 warehouses , as well as scrapping services like free Whole Foods delivery , and its Scout home delivery robot as it contends with slowing e-commerce growth .
Like many businesses , Amazon is struggling in the face of soaring inflation and rising interest rates .
There is concern in the wider logistics sector that Amazon ’ s shrinking retail operation might have a knock-on effect on Amazon Freight , a third-party logistics operation that in the UK and Europe alone , runs a network of 6,500 trailers and 13,000 carrier partners .
� SEA SHIPPING AFFORDABILITY
Ports worldwide are clogged with empty shipping containers as the readjusts to economic slowdown and a post-pandemic change in customer behaviours , says a company whose digital platform helps match container supply with demand .
� RUSSIAN-CHINESE RAIL FREIGHT
The first rail bridge connecting Russia and China is finally up and running , having been first mooted in 2008 . The Nizhneleninskoye-Tongjiang Bridge means the route to reach northern Chinese provinces from Russia will be cut by 700km .
� AIR FREIGHT
DHL ’ s latest Airfreight State of the Industry report suggests soaring inflation is likely to see reduced purchasing power and demand for air freight going into 2023 . It shows lower sales and high inventory are common across most sectors , with retail and manufacturing most affected .
� SCOPE 3 ACCOUNTABILITY Most organisations are failing to measure the environmental impact of their supply chains , a new report by CIPS and Deloitte has found . Just 26 % of public and private sector organisations are monitoring greenhouse gas emissions in their supply chain .

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