Latest / Bloomberg Intelligence / Satish Jindel Says Amazon Will Crush Other Retailers (Audio)

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Satish Jindel Says Amazon Will Crush Other Retailers (Audio) · Bloomberg Intelligence

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  Speaker 1: Broadcasting live to New York, Bloomberg eleven, Brio to Washington,
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  Speaker 1: on taking Stock. Do you think that Amazon already rules
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  Speaker 1: the world? While according to my next guest, get ready,
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  Speaker 1: you've not seen anything yet. We're gonna be talking about Amazon,
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  Speaker 1: its logistics business and its ability to crush almost everything
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  Speaker 1: the fifty five billion dollar deal. It's three thirty two
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  Speaker 1: on All Street and having dis time to get an
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  Speaker 1: update of some of the other stories were following right
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  Speaker 1: thank you. And now let's get a quick update of
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  Speaker 1: the equity benchmarks down Industrial averages up fifty five points
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  Speaker 1: at seventeen thousand, seven hundred sixteen smp F I founded,
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  Speaker 1: a Bloomberg business flash. You're listening to Taking Stock with
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  Speaker 1: Kathleen Hayes and Pim Fox on Bloomberg Radio. Amazon. Amazon
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  Speaker 1: will least twenty Boeing seven six seven jets from Atlas
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  Speaker 1: world Wide. That was announced yesterday. In March, Amazon also
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  Speaker 1: agreed to least twenty Boeing seven six sevens from air
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  Speaker 1: Transport Services Group. So is Amazon getting into the airline
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  Speaker 1: and logistics business. Let's find out from my next guest,
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  Speaker 1: Satish Jendal, joins me. Now, Satis Jendal is an expert
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  Speaker 1: when it comes to the world of logistics and transport.
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  Speaker 1: He is the founder and the president of s J
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  Speaker 1: Consulting Satish. Always a pleasure, Thanks for coming in, Thanks
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  Speaker 1: for having um. It just set the record so people
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  Speaker 1: understand a little bit about your experience, so that they
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  Speaker 1: are aware that you know a lot about logistics and
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  Speaker 1: also about the changing nature of who's in the logistics business.
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  Speaker 1: I have worked with every global transportation provider that we have,
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  Speaker 1: from FedEx, do Ups to d h L to T
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  Speaker 1: and T and on and on. And I've been in
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  Speaker 1: this industry thirty some years, have been part of all
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  Speaker 1: the major changes the industry has had an influence many
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  Speaker 1: of them, and have worked with overtoned companies around the globe.
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  Speaker 1: So and also deal with many of the retail shippers
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  Speaker 1: through the technology of ship Matrix and have got great
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  Speaker 1: insight into the paints they're experiencing. All right, So, now,
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  Speaker 1: did you ever think that you will be writing about
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  Speaker 1: Amazon as a shipping and logistics company? You know, for
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  Speaker 1: people who know me, they are shocked that I could
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  Speaker 1: put up paper like that about Amazon out And when
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  Speaker 1: you had me on the taking Stock television a year
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  Speaker 1: ago about minions, you saw what I had to say
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  Speaker 1: about it. Amazon is a company that is a very
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  Speaker 1: large company, but it operates like a very small company.
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  Speaker 1: When they've put ideas, they don't waste time analyzing and
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  Speaker 1: analyzing for a year it becomes dated. They implement and
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  Speaker 1: they test it. If it works, they go forward. If
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  Speaker 1: it doesn't, they move on to something else. And Amazon
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  Speaker 1: is going to change the way people think of retail sector.
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  Speaker 1: And let me put in perspective. Not many people will
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  Speaker 1: realize that there used to be a time when when
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  Speaker 1: you bought something from a retail store and you took
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  Speaker 1: it back, they won't take it back. You couldn't take
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  Speaker 1: it back. There was no returns, and if some of
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  Speaker 1: them did take it, there the stocking fee. Today, every
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  Speaker 1: retailer takes our return returns are very expensive for our retailer.
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  Speaker 1: So what do they do? They take it? But then
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  Speaker 1: who's paying for it? Everyone? It's part of the business
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  Speaker 1: model Amazon exchanging that where they're gonna say free shipping
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  Speaker 1: is part of the business model. You have to find
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  Speaker 1: ways to recover the cost of shipping. And Amazon has
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  Speaker 1: got the best model for it. That's gonna crush other
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  Speaker 1: retailers who are struggling with it. Social investors who are
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  Speaker 1: invested in fed X and UPS, should they be concerned.
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  Speaker 1: They should be concerned from the perspective that those companies
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  Speaker 1: need to respond at a faster pace to the changes
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  Speaker 1: taking place in the e commerce world, and to the
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  Speaker 1: extent that some of them will tell their investors that
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  Speaker 1: we're not losing any business because our customers are not
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  Speaker 1: going to Amazon. What Amazon is doing is when they
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  Speaker 1: are shipping a billion packages a year and managing it themselves.
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  Speaker 1: Those packages would have been part of a fed X
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  Speaker 1: or a UPS or a post off the network. The
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  Speaker 1: report that you put together about Amazon. Where can people
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  Speaker 1: access this so that they can learn a little bit
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  Speaker 1: more in detail? They can't get the details for free.
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  Speaker 1: We've spent three months, over two fifty hours of research
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  Speaker 1: assembling it, and people who wanted are placing orders for it,
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  Speaker 1: and they can buy They can get the highlight from
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  Speaker 1: the articles that they have been published. Vast Peak is
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  Speaker 1: going to be including that in one of their reports,
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  Speaker 1: but for the full details and the charts and the tables,
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  Speaker 1: they would have to buy it. How much is this
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  Speaker 1: going to cost Amazon to put together or is that
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  Speaker 1: immaterial for a company of this size. You know Amazon
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  Speaker 1: is going to spend sixteen billion on all of this
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  Speaker 1: for this year, on the outbound shipping twenty two billion
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  Speaker 1: next year. That's a lot of money, but it is
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  Speaker 1: still a better model for them because what Amazons approaches
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  Speaker 1: that my customer is my customer, and I want them
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  Speaker 1: to have my kind of experience from the time they
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  Speaker 1: place the order till it is delivered to their doorstep.
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  Speaker 1: Turning it over to a carrier and washing your hands
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  Speaker 1: off like retailers to is not the customer satisfaction model
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  Speaker 1: that they are pushing, which I think is a very
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  Speaker 1: high level of customer satisfaction. And they're going to to
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  Speaker 1: English themselves from that perspective and whatever it takes for
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  Speaker 1: them to build this, they're not trying to build it.
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  Speaker 1: They're trying to control the distribution and the fulfillment. And
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  Speaker 1: it's the control that's important that doesn't cost as much
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  Speaker 1: as building it. Is. This also part of their strategy
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  Speaker 1: to expand outside the United States. I mean, obviously it
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  Speaker 1: already is global, but to reach even deeper into emerging
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  Speaker 1: economies where they want to be big players. Yes, and
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  Speaker 1: they're already doing that in India. I know it from
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  Speaker 1: being my home country. They're doing it in Europe. Look
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  Speaker 1: at their buying an airport in Germany. They can control
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  Speaker 1: of it and what they plan to do. And this
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  Speaker 1: is where people don't realize. The biggest target for Amazon
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  Speaker 1: in their corporate offices is another company starts within eight
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  Speaker 1: and it's not Walmart, and it's not Target and others.
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  Speaker 1: It's Alabama. Because Alabama is approaching it in the perspective,
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  Speaker 1: they're saying, I'm gonna make it easy for the manufacturer
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  Speaker 1: to sell directly to the consumer, which is the real
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  Speaker 1: value of Internet is connect pieces people without middleman. Amazon
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  Speaker 1: is saying, ah, when it comes to product moving, I'm
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  Speaker 1: going to control that because distribution is critical the goods
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  Speaker 1: moving from one point to the other. And I'll have
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  Speaker 1: the cheapest and the fastest solution that no manufacturer will
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  Speaker 1: be able to offer. Thank you very much, Satisue Gindle
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  Speaker 1: of s J and southing. Where where's the airport in Germany?
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  Speaker 1: Maybe we'll go visit. It's near Frankfoot. Aye, we'll take
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  Speaker 1: a little ship there in Amazon's new airport. Thank you
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  Speaker 1: very much, satis Gender On Amazon, it wants to rule
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  Speaker 1: the world. Coming up on taking stock, We're going to
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  Speaker 1: take stock of impact investing, What is it sustainable investing
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  Speaker 1: and what portion of your portfolio should it be dedicated to.
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  Speaker 1: That's next