Tag Archives: Amazon.com

Life at the Speed of Prime

“You want it when???”

you

Back in the 1970’s, this jewel of a cartoon began appearing in workplaces all over the world. As lead times have decreased since then, many people have looked at this drawing at their work stations and smiled, after customers placed unrealistic delivery dates for them to meet. In my management career with a hotel furniture manufacturer, I’ve felt the stress of demanding customers pushing me to get them their product quickly. In turn, my vendors and our manufacturing team had that pressure transferred from my shoulders to theirs. I’m sure many of them hung up the phone, looked at this image and laughed at me.

Back in those days, my world view was focused between our company’s vendors, workers, and customers from my desk in Holland, Michigan. Sure, I’d think about how my demands affected their personal lives, but the constant pressure on me never allowed me to look much further than that. Retirement to lives as fulltime RVers has expanded Diana’s and my views to help us understand the bigger picture of how our world is speeding up. Two post-retirement jobs in particular have really driven that point home: packing boxes for Amazon and delivering packages for UPS.

When the two of us first walked into Amazon’s fulfillment center in Campbellsville, Kentucky last year, I literally had to fight back tears of joy. To totally understand why that is, you have to go back to my upbringing in the neighborhood that surrounds the Ford Rouge plant in suburban Detroit. I was one of the fortunate few who took the old tour of the facility in which I saw the iron ore being unloaded from a ship at one end of the plant and a finished Mustang being driven off the line at the other end. That was a pivotal day in my life in which I saw what an efficient process could do in getting product to the consumer quicker. I would spend my career striving to streamline everything I did, often keeping Henry Ford’s beloved Rouge complex in the back of my mind. When we toured Amazon during our orientation, everything I dreamed of achieving…and more…was happening before our eyes! Orders that hadn’t even been placed yet when we ate breakfast, were being packaged and sent to waiting trucks before we sat down to eat our lunches. The concept that is Amazon Prime…where an item ordered online will be delivered in two days…had become our daily duty.  Clearly, Jeff Bezos & Company had built upon Mr. Ford’s dream and had polished it to such a model of efficiency that even Henry would be awestruck.

Fast forward to this holiday season and my job delivering packages for UPS. I’m seeing how the Amazon Prime culture is affecting the shipping business. Melbourne’s little UPS distribution center…while quiet most of the year…sees not only a huge population increase as the snowbirds arrive in town, but also in the amount of items those people are buying online during the holidays. FedEx and the US Postal Service sees the same thing. Imagine trying to run a business within those parameters. On a system-wide scale, more airplanes and semis are needed this time of year…not to mention the increases needed at the local level. While I haven’t seen it with the other shippers, the seasonal golf carts is how UPS has addressed the onslaught of Christmas deliveries. Evidently, they use them throughout the U.S. in places where snow isn’t an issue. For the price of a golf cart, trailer, safety vest, gasoline, smartphone, temporary driver’s wages and a rental pod, they can cover a residential area of a half square mile or more. Also factor in the hiring, training and supervision of the temporary employees. For trainers/supervisors, they are using senior and retired drivers to fill those positions. For hiring, they are advertising on indeed.com and using county employment agencies to physically handle the amount of people applying for these jobs. All of these resources are tangible and can be relied upon year after year. For a worker like me looking to pick up some extra cash, the job is a good deal. And for a young person wanting a career, its an outstanding opportunity to get a foot in the door.

Change is happening in places other than the shipping industry, because of Amazon.  Since Prime was introduced in 2005, retailers have either closed their doors or adapted to the change.  Malls stand empty across the country, as do many big box stores.  Walmart has accepted the challenge online by offering free two day shipping without the subscription fee that Amazon charges for Prime.  Target, Kohls and many other brick-and-mortar retailers are also stepping up their online presence.  They have to in order to survive.  Groceries will no doubt be next, with Amazon’s purchase of Whole Foods.  What comes next is anybody’s guess; it could be a pharmacy retailer, a home improvement chain or any number of things.

I have faith that solutions will be found for companies like UPS to adapt to life at the speed of Prime. Being able to observe them pull it off fascinates me to no end. I look forward to see the next big innovation and the changes it will bring to our world.

What ways have you seen that Amazon Prime has changed your world?


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Joining the Amazon CamperForce

When we decided to retire, become fulltime RVers and travel North America, we knew we would want to supplement our retirement savings on occasion.  That would be accomplished through ‘work camping’, which involves some sort of work being done in exchange for a campsite. Our jobs the past two summers at Wild Cherry provided us a free place to stay in a fabulous location for two easy days of work each week.  Many of these campgrounds offer fulltimers additional compensation after a certain number of hours to entice us rolling retirees to come and work for them.  Recognizing the work ethic this segment of society has to offer, several companies that have nothing to do with camping are jumping on this bandwagon.  One of the biggest examples of this is the online retailer, Amazon.com.

To pass along a little history, Amazon.com was founded as Cadabra, Inc in 1994 by Jeff Bezos in his garage in Bellevue, Washington.  

One of his lawyers misunderstood the name to be cadaver, so Bezos changed it to Amazon, as the Amazon River was “exotic and different.”  It’s also the biggest river in the world, just as he hoped his company would be.  Furthermore, he noted that it was at the top of the alphabet, thereby appearing at the top of an alphabetized list.  The company went online in 1995 as a book retailer (I remember that!) and eventually began selling everything from A to Z with a smile, as indicated in their logo.    

I wonder where he got that idea?

Amazon survived the dot com bubble burst and turned a profit in the fourth quarter of 2001.  The company went public with an initial public offering of stock at a price of $18 a share in 1997 (actually equal to $1.50 after three stock splits early on) and is now trading at $822 a share.  It is mind boggling to think that a person who would have invested a mere $2000 in the company in 1995 would be a millionaire today from just that one transaction!  In 22 short years, the company has over 100 billion in annual revenue (2015) and over 250,000 employees in 16 countries….and it all started in a garage.

With that kind of explosive growth, logistics come into play.  Fulfillment centers (known from here out as FC) need to be placed near airports that are serviced by shipping companies, and also near a stable workforce.  Campbellsville, Kentucky was a perfect choice, as a 1998 closing of a Fruit of the Loom textile plant left a fairly new building vacant and over 800 workers unemployed.  It was also very close to the Louisville airport (airport code SDF), also known as Worldport, United Parcel Services main hub.  The new FC in Campbellsville opened in May of 1999 and was named SDF-1…or the first FC to ship out of that airport.  Being centrally located in the United States, SDF-1 played an important role in Amazon’s success.

Amazon started offering items other than books in November of 1999.  It wasn’t long before consumer buying habits started shifting from brick-and-mortar stores to buying goods online.  In 2005, the term Cyber Monday came into existence, referring to the first workday after Black Friday, when many people sit at their desks and do their holiday shopping instead of their jobs.  The Amazon FCs started feeling the pinch, and armies of temporary employees were brought in to help with the increased workload.  In Campbellsville’s case, many were bussed in from Louisville and housed in local hotels.  As is often the case with temps, quality and attendance issues arose…and sleepy little Campbellsville was having to deal with a segment of society that tend to cause problems.  

In 2008, the FC in Coffeysville, Kansas began a pilot program to hire work campers to help with the holiday rush, known in Amazon circles as peak season. That program has since been expanded to several other FCs…including Campbellsville…and has been given the name Amazon CamperForce. The upside for the company is that the majority of these workers are retired and have a great work ethic and attendance.  The only drawback is that they tend to want to change the Amazon way of doing things, as they come from careers in which they did things differently.  That fact is stressed at orientation, saying “it’s a job, not a career”.  The company sends recruiters to RV shows around the country to recruit new workers each year.  We put our names on the list at the Tampa RV Show in January, after reading the accounts of several friends and family members who had done it in the past.  We already had ties with the company as advertisers through our Associates account (located at the bottom of each post), so we thought it would be fun to see what makes the place tick.

We arrived on October 8 to find a newly remodeled facility.  Our friends Peg and Michele who worked last year pointed out that the building is vastly improved, and is much cleaner.  The regular workers (known as Amazonians) seem genuinely happy that we are there, probably because the CamperForce can be counted on to get the job done without too much drama.  Our first morning was orientation, led by a very entertaining and informative gentleman named Kelly Calmes.  That was followed by safety school in the afternoon.  The remainder of the first week was 5 hour work days in our departments, meant to harden us for the 10 hour days that were to follow.  We were assigned to packing, which I will talk more about in a future post.  


Looking pretty good at 6:15 AM for Breast Cancer Awareness Week!

For now, I will leave it at this:  our first week went really well. We found the work, the environment and people enjoyable.  We are amazed at the process, and I kept finding myself looking back to my career in manufacturing and thinking ‘THIS is how we should have done things’.  Granted, their system is not perfect…but when you consider that almost every package they deliver is on time and correct, it’s pretty darned slick.

And it all started in a garage just a mere 22 years ago…
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explorRVistas is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon .com. Shopping through our link doesn’t add anything to your cost, but it does help support this blog. Thank you for shopping through exploRVistas!