National Transportation Management

Air Transport and its Impact on the Supply Chain: A Case Study of Amazon’s Supply Chain Transportation Student’s Name Institution Course # and Name Instructor’s Name Submission Date Abstract Globalization has led to the distribution channels in a supply chain extending across borders. Air transport has been instrumental in meeting customers' demands in different countries. Goods are transported to the end consumer conveniently and efficiently through air transport, thus allowing organizations to meet the ever-changing needs of their customers. Air transport can impact the supply chain both negatively and positively. This research aims to analyze the impact of air transport on the supply chain. This paper uses the case study of Amazon's supply chain to analyze the impact of air transport on the supply chain. Through the literature review, this research analyzes how Amazon Air manages its inventory to increase operational efficiency. The research analyzes the advantages and disadvantages of Amazon Air and ways to improve logistics. Finally, the research provides recommendations on incorporating technology to reduce the loss of cargo and enhance supply chain operations. Keywords: Supply Chain, Air Transport, Amazon, Air Cargo Introduction Transportation and logistics management play a crucial role in ensuring the success of an organization. Globalization has promoted trade in different countries (Zhang & Graham, 2020). Numerous brands, such as Amazon, have invested in air transport through the emergence of Amazon Air, which serves over 70 locations worldwide (Schwieterman & Craig, 2023). Amazon is a renowned online retail brand since it has customers worldwide. The organization established Amazon Air as a means to control its supply chain. Previously, the organization depended on delivery companies like FedEx to deliver goods to customers. Prime members can enjoy cheaper delivery costs because of air transport. According to statistics, Amazon has over 300 million customers worldwide (O’Sullivan, 2024). The increase in client base meant that Amazon needed to formulate a strategic plan to cater to worldwide customers. Amazon established that Amazon Air has an aircraft fleet that facilitates the transportation of goods to customers. Air transportation is widely used because of its efficiency and timely delivery; thus, it is mainly preferred by different organizations. However, factors such as increases in price policies might negatively affect the supply chain. Amazon Air might be impacted negatively by weather constraints that lead to delays (Rodrigue, 2022). An organization must monitor its supply chain to ensure efficiency and maximize profits. Constant supply chain assessment ensures that discrepancies are noted early enough and changes are made. This paper discusses air transport and its supply chain implications, focusing on Amazon as an example. Literature Review Air Transportation and its Impact on the Supply Chain The proliferation of online shopping has necessitated air transportation, revolutionizing supply chain logistics. Thus, evaluating air transportation's impact on supply chain strategies is crucial. To understand the impact of air transportation, it is essential to understand its benefits and challenges on the supply chain. Research conducted by Abdi et al. (2020) argues that air transportation affects the financial performance of an organization through inventory management. When logistics are not streamlined, losses are incurred, and delays and operational inefficiencies are experienced. Schwieterman and Walls's (2020) study argues that Amazon genuinely emphasizes cargo-only airports to improve operational efficiency. Based on this finding, it is evident that inventory is easily monitored because of the stringent security protocols. The cargo-only airports ensure efficient tracking and monitoring of products. For a supply chain to be effective, management must take stock of the inventory, which enhances operational efficiency in the supply chain. Air transportation has extra costs, such as maintaining the airplanes used in the supply chain. An organization will incur additional costs to transport the goods to the end user. The inventory should be balanced based on customer demand and supply (Bartulović, 2022). Poor inventory practices can negatively impact the business by incurring additional costs and expenses. Streamlining the inventory ensures that an organization maximizes profits and reduces expenses. Air transportation is quick and efficient, ensuring that other processes, such as delivery, can be done on time. Timely delivery through air transport can impact the supply chain; however, delays can negatively ...