PROCUREMENT
distribution network and shipping arrangements is , but multiple prominent examples give you an idea of the scale .
Both Royal Mail and FedEx have seen profits drop , with overall Royal Mail parcel revenue down by 1 percent for the three months leading to June this year ; with the company specifically blaming the slide in its parcel business on Amazon ’ s decision to introduce a £ 10 minimum spend for free delivery and also to expand its own delivery network .
Meanwhile FedEx ’ s volumes for FedEx ’ s ‘ SmartPost ’ service fell by 8 percent to the quarter ending 31 May this year . However , volumes actually increased 15 percent if the numbers excluded the “ changes in shipping patterns from one large customer .” FedEx said in the statement accompanying the earnings .
This large customer is almost certainly Amazon as it is consistent with Bezos work to lessen the reliance on third party logistics and not many global firms could affect another ’ s profits so greatly .
For many years , products stored in Amazon ’ s European fulfilment centres outside the UK have been available to order on Amazon . co . uk with a delivery time of between 3-7 days . Now , as a result of improvements and innovations in its cross border delivery network , more than a million products stored in its European Fulfilment Centres are now available for Two-Day Delivery for customers in the UK .
By the end of the year , that number of products available is expected to rise to 3 million . Prime customers in the UK will automatically qualify for Two-Day Delivery on these products at no additional charge . Add to that the
26 September 2014