GM Looks to Amazon for Vehicle Delivery Improvement Ideas
If you’ve ordered anything from Amazon.com you’ve experienced firsthand how the online company runs like a finely tuned Swiss clock, funneling out millions of deliveries every week. Businesses, especially vehicle manufacturers, have now started to look more thoroughly at Amazon’s efficient shipping process, in order to see if optimizing their factory-to-dealership deliveries might be something they should consider.
“Amazon has the best logistics in the world,” Dale Sullivan, who heads Chevrolet’s Western region, told a dealer gathering in Idaho. “That’s where we need to go; where we can precisely tell you where a vehicle is and when you will get it.”
While vehicle deliveries are more complicated than your average household packages, General Motors is not afraid of looking at innovative ways to improve its nationwide factory-to-dealership deliveries.
Currently, GM contracts with trucking and railroad companies to transport their vehicles. “We have the rail cars and trucks but not enough of them, and (transportation) suppliers are nervous about adding capacity,” he said. “It will slowly get better but not totally better.”
“We’ve had people visit Amazon,” Sullivan said at the Idaho Auto Dealers Association. However, GM’s goal right now is simply continuous improvement, as they strive to learn everything they can from the force that is Amazon.