Logistics
How the global supply chain moves 11 billion tonnes of goods per year — and why the companies that control the chokepoints print money.
A package travels 1,000 miles from a hub, sorted and loaded on planes. It's moved across country and sorted again. Then it travels the last mile to your door. That final mile costs more than all previous distance. Every logistics company obsesses over solving it. The last mile is 53% of cost. 100 miles costs $30, 10 miles costs $90. Distance decreased 10-fold, but costs tripled. Labor is inefficient. Drivers park, walk, find buildings, wait. Scale breaks down. Amazon, FedEx, and UPS race to solve it. Amazon built local networks and vehicles.
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