Information technology in logistics: why has Amazon launched a new service and what is happening in the Russian market?

In addition to other countries, this logistics service will now also be available in India.

Amazon.com Inc. has launched Amazon Air, a dedicated air cargo service, in India in an effort to expand and speed up delivery in one of its key markets amid rapidly growing e-commerce sales.

The company has invested in Indian cargo carrier Quikjet to exclusively transport parcels for Amazon in four major Indian cities, Sarah Rhoads, vice president of Amazon Global Air, told Reuters, without specifying the size of the investment.

The use of information technology in logistics will allow Amazon to control costs and flight schedules more tightly and reduce delivery times for a wider range of goods, the vice president said.

“We strive to deliver most shipments in two days or faster, and Amazon Air allows us to do that,” Rhoads said.

India is the third-largest market for Amazon after the U.S. and Europe, where the company has launched Amazon Air. The Seattle-headquartered company, which launched the service in 2016 in the U.S., operates a network of more than 110 planes that fly to more than 70 locations around the world.

Centicore Group conducted an analysis and compared Amazon’s innovations to how the logistics and trucking industry is evolving in the Russian market.

According to the survey by Pitchbook Data, 86% of managers of logistics companies believe that information technology is the best way to optimize and reduce costs. It is also reported that 80% of companies working in the freight industry introduce modern solutions based on information technology and artificial intelligence.

The Russian IT logistics market is actively developing. For example, the Ministry of Economic Development supported the initiative to automate logistics activities using drones. The main goal of this project is the digitalization of freight transportation systems and their scaling across the country. Centicore Group is developing video analytics for UAVs and sees great promise in the development of this area.

Based on projections, the logistics industry’s demand for digital technology could increase to ₽626.6 billion by 2030.

One of the eight main industries in which Centicore Group specializes is retail and supply chains. We see potential in expanding this service from Amazon because, based on experience with our customers in this industry, it will help make workflows faster and more efficient.