Amazon’s Massive Distribution Network in One Visualization
View the high resolution version of today’s graphic by clicking here.
Last year, Amazon shipped over 5 billion (with a “B”) Prime packages, and the retail giant’s ecommerce market share in the U.S. is on the verge of surpassing 50%.
Moving that kind of volume takes an impressive amount of technical sophistication, manpower, and distribution infrastructure. While Amazon does lean on third parties for deliveries and warehousing, the company is also building an increasingly expansive distribution network in an attempt to manage the entire process.
Today’s visualization, which uses comprehensive data from MWPVL International, examines the estimated 124 million square feet of active space in the U.S., as well as the 40 million in Amazon’s construction pipeline.
To create our graphical footprint of Amazon’s warehouses in the infographic, we’ve used satellite imagery of every Amazon facility in the U.S. and stitched it all together.
Pieces of the Puzzle
There are a few types of facilities that make up the vast network of Amazon’s warehouses:
Containers from foreign vendors can be held at a crossdock facility until more stock is needed at the fulfillment center. This is the back-end of the distribution chain.
Fulfillment centers are the most common type of facility in Amazon’s distribution empire, but they serve a wide variety of purposes.
Amazon began building its distribution network in 1997, starting with two fulfillment centers in Seattle and Delaware. The two spaces would be tiny compared to today’s standards at 93,000 and 202,000 square feet, respectively. Now, there is nearly 100 million square feet of active fulfillment center space, with another 35 million on the way.
These facilities are responsible for sorting packages by zip code which are then typically delivered to USPS sites. Since being introduced in 2014, sortation centers have allowed Amazon to speed up the delivery process and to help control the distribution process up to “the last mile”.
In urban areas, delivery stations are often the last step in the chain before packages reach a customer. Courier companies – and increasingly Amazon Flex drivers – typically handle these short-range deliveries. These stations are often located near airports.
Prime Now Hubs
These smaller locations are specifically designed for speed. Prime Now hubs carry a more limited selection of items – including Whole Foods inventory – that are delivered within two hours of clicking “buy”. There are currently around 50 of these facilities in urban areas around the United States, but that number is expected to increase dramatically in the near future.
Prime Air Hub
Amazon doesn’t own its own airport yet, but the recently announced $1.5B international Prime Air Hub is a step in that direction.
The 210-acre parcels will help Amazon expand its Prime Air fleet while reducing its reliance on companies like UPS and FedEx. Kentucky is a natural choice for the hub as there are already 11 fulfillment centers in the state.
Fighting for the Last Mile
Over the years, Amazon has optimized every aspect of the distribution system, but one final hurdle remains.
Conquering the last mile – the final leg before a package reaches its destination – has proven tricky, in part because USPS already has a well-honed strategy for delivering to all the nation’s residents.
The company’s earnest recruitment drive for Amazon Flex is the latest in a long line of attempts to decrease reliance on third parties for package delivery. Also, by tapping into on-demand labor, Amazon hopes to reduce costs and have more flexibility during volume surges like Black Friday.
This desire to own the entire process is being reflected in the company’s roster of distribution facilities. The massive fulfillment centers aren’t going anywhere, but we may see a lot more smaller delivery hubs in cities and towns across America.
The World’s Tech Giants, Ranked by Brand Value
Tech giants and e-commerce brands are thriving—and running circles around less pandemic-proof brands.
The World’s Tech Giants, Ranked by Brand Value
The pandemic has businesses everywhere on the ropes, with many firms filing for bankruptcy since lockdowns began. Despite the uncertainty, tech giants and major digital retail brands are still thriving—and some are running circles around those that are less pandemic-proof.
Using data from Kantar and Bloomberg, a recent brand report released by BrandZ shows which tech companies are proving their worth to consumers during COVID-19 chaos. With data covering almost 4 million consumers, BrandZ also reveals that the tech sector leads the world’s 100 most valued brands in terms of financial power and consumer sentiment.
Here’s how the top 20 tech brands from the report stack up:
|Rank||Company||Brand Value (2020)||Change (%)|
|#1||🇺🇸 Apple||$352 billion||+14%|
|#2||🇺🇸 Microsoft||$327 billion||+30%|
|#4||🇨🇳 Tencent||$151 billion||+15%|
|#6||🇺🇸 IBM||$84 billion||-3%|
|#7||🇩🇪 SAP||$58 billion||0%|
|#9||🇺🇸 Accenture||$41 billion||+6%|
|#10||🇺🇸 Intel||$37 billion||+17%|
|#11||🇺🇸 Adobe||$36 billion||+29%|
|#12||🇰🇷 Samsung||$33 billion||+7%|
|#13||🇺🇸 Salesforce||$30 billion||+13%|
|#15||🇨🇳 Huawei||$29 billion||+9%|
|#16||🇺🇸 Oracle||$27 billion||+2%|
|#17||🇺🇸 Cisco||$26 billion||-9%|
|#18||🇺🇸 Dell||$18 billion||-2%|
|#19||🇨🇳 Xiaomi||$17 billion||-16%|
|#20||🇨🇳 Baidu||$15 billion||-29%|
Out of the top five tech brands, Microsoft made the biggest moves with 30% brand value growth. Other big movers in the top 20 were Instagram (owned by Facebook), Adobe, and LinkedIn (owned by Microsoft), rising 47%, 29%, and 31%, respectively.
Broken down by nation, U.S. brands are dominating tech’s heavy hitters, claiming 14 of the world’s top 20 tech brands. Chinese brands round out much of the remaining top 20, including tech entertainment and social media giant Tencent, which rose 15% in brand value since 2019.
Big Tech’s Heavyweights
Tech’s top brands are raking in billions of dollars, capturing consumer mindshare, captivating people, and comforting them during volatile months. Apple, Microsoft, Google, Tencent, and Facebook—tech’s leading contingent—have made those moves look easy during what are rough times for many world brands.
While most tech brands in the upper half of the top 20 saw significant increases in brand value, only Facebook and IBM were in decline from 2019, at -7% and -3% respectively. The biggest loss in tech’s top 20 came from China’s Baidu, which fell by -29% in 2020.
Waning consumer trust, thanks in part to the perceived misuse of personal data, is a gap that tech’s popularity alone won’t fill forever. (Following the Cambridge Analytica scandal, nearly 25% of Facebook account holders reported being “extremely” or “very” concerned about their personal data.)
Coming in at eighth place, Facebook-owned Instagram gained 47% in brand value—a huge percentage, but less than the whopping 95% growth it had in 2019.
On the whole, digital apps have been faring well during the pandemic, especially those built for entertainment, shopping, social connection, and delivery.
These brands had anticipated, even invented, the online-offline dynamics of modern life that became indispensable for survival during the lockdown homebound weeks of avoiding the contagion.
— BrandZ 2020 Global Top 100 Report
Top Brands, by Category
While the brand value growth rates of tech giants aren’t entirely immune to the effects of COVID-19, the likes of Apple, Microsoft, and Google are growing steadily, surpassed only by e-commerce leader Amazon.
With data collected into April 2020, BrandZ’s report on the world’s top 100 brands reflects multiple shifting needs and consumer concerns at a categorical scale.
While consumer affinity for e-commerce and social media brands has increased, fast food and beer brands took a hit, despite reports of increased alcohol consumption and food delivery during lockdown. It would seem then, that consumers have been valuing their tools and means of consumption.
Of the report’s 14 brand categories, only six increased in value, mostly by less than 5%. Of the top risers, six were tech brands and six were mainly e-commerce.
Other upwardly mobile brands were those in the apparel and personal care categories. Much like retail, those categories had an increasing reliance on technology to deliver their products.
The above chart shows overall categorical changes for 2020 led by retail, tech, and insurance. In the opposite corner, energy, and bank brands took the biggest hits.
Rolling with the Punches
The economic impacts of COVID-19 are undeniable. Even still, BrandZ’s top 100 brands marked a steady increase of 6% in value in 2020, compared to 7% the previous year.
This pandemic has offered up era-defining change, with tech and e-commerce seizing the day. But in a climate where nothing can be taken for granted, brands large and small are still taking their knocks.
For now, the brands that are embraced by consumers will be those that can apply a salve to the blows that 2020 keeps delivering.
Connected Workers: How Digital Transformation is Shaping Industry’s Future
This graphic explores the role connected workers play in achieving successful digital transformation and identifying new growth opportnities.
Connected Workers: Shaping the Future of Industry
Digital transformation has upended businesses on a global scale, and no industry is immune from its powerful effects.
New technologies and enhancing customer experience are key drivers for companies investing in digital transformation, but the most important reason for prioritizing this shift is that it will allow them to leverage entirely new opportunities for growth.
However, with the speed of digital transformation accelerating at a furious pace, companies need to quickly adapt their working environment to keep up. This graphic from mCloud unearths the origins of the connected worker, and explores the potential applications of connected devices across industries.
The Rise of the Connected Worker
The mass adoption of smart devices has sparked a new wave of remote work. This type of working arrangement is estimated to inject $441 billion into the global economy every year, and save 2.5 million metric tonnes of CO2 by 2029—the equivalent of 1,280 flights between New York and London.
However, flexible or remote working looks different depending on the industry. For example, in the context of business services such as engineering or manufacturing, employees who carry out different tasks remotely using digital technologies are known as connected workers.
The term is not a one-size-fits-all, as there are many different types of connected workers with different roles, such as operators, field workers, engineers, and even executives. But regardless of an individual’s title, every connected worker plays a crucial role in achieving digital transformation.
Real Time Data, Real Time Benefits
When workers are connected to assets in real time, they can make better, more informed decisions—ultimately becoming a more efficient workforce overall. As a result, industries could unlock a wealth of benefits, such as:
- Reducing human error
- Increasing productivity
- Reducing dangerous incidents
- Saving time and money
- Monitoring assets 24/7
While connected workers can enhance the potential of industries, the tools they use to achieve these benefits are crucial to their success.
Connected Worker Technologies
A connected device has the ability to connect with other devices and systems through the internet. The connected worker device market is set for rapid growth over the next two decades, reaching $4.3 billion by 2039. Industries such as oil and gas, chemical production, and construction lead the way in the adoption of connected worker technologies, which include:
- Platforms: Hardware or software that uses artificial intelligence and data to allow engineers to create bespoke applications and control manufacturing processes remotely.
- Interfaces: Technologies such as 3D digital twins enable peer-to-peer information sharing. They also create an immersive reflection of surroundings that would have otherwise been inaccessible by workers, such as wind turbine blades.
- Smart sensors and IoT devices: Sensors that monitor assets provide a more holistic overview of industrial processes in real time and prevent dangerous incidents.
- Cloud and edge computing: Using the cloud allows workers to communicate with each other and manage shared data more efficiently.
Over time, connected devices are getting smarter and expanding their capabilities. Moreover, devices such as wearables are becoming more discreet than ever, and can even be embedded into personal protective equipment to gather data while remaining unobtrusive.
Real World Applications
With seemingly endless potential, these devices have the ability to provide game changing solutions to ongoing challenges across dozens of industries.
- Building Maintenance and Management
Facility managers can access real time information and connect with maintenance workers on site to resolve issues quickly. Building personnel can also access documentation and remote help through connected technologies.
- Task Management
Operators in industrial settings such as mining can control activities in remote locations. They can also enable field personnel to connect with experts in other locations.
- Communications Platform
Cloud-based communication platforms can provide healthcare practitioners with a tool to connect with the patient, the patient’s family and emergency care personnel.
By harnessing the power of artificial intelligence, the Internet of Things, and analytics, connected workers can continue to revolutionize businesses and industries across the globe.
Towards a More Connected Future
As companies navigate the challenges of COVID-19, implementing connected worker technologies and creating a data-driven work environment may quickly become an increasingly important priority.
Not only is digital transformation important for leveraging new growth opportunities to scale, it may be crucial for determining the future of certain businesses and industries.
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