Supply Chain Optimization

It’s Not Amazon’s Fault And CSX Service Is Slowing

Don’t believe everything you read!
 
I read an article the other day claiming that the US Postal Service gave Amazon special rates to get their business – delivering Amazon parcels the critical last mile. What the article should have said is that the Post Office was not applying the correct overhead to their parcel rates and, as a result, under prices, it’s service to everybody (except the taxpayer).  Amazon is smarter than the average company – and they have a big volume, which allows them to deliver parcels in bulk to the local post office to take advantage of poorly constructed postal rates…making the last mile more economical.    
 
As CSX implements “Precision Railroading,” transit times have increased by ~48 hours…but those of us who have implemented large changes know that there is always a pain to achieve significant gain.