E-commerce powerhouse Amazon is under federal fire for alleged mistreatment of its contract delivery drivers, who drive Amazon-branded trucks and wear vests with the company’s logo but are not classified as Amazon employees, according to a bipartisan letter from 29 U.S. Senators.
The letter to Amazon CEO Andy Jassy requests information about the company’s Delivery Service Partner (DSP) program and the company’s so-called efforts to avoid legal liability for the persistent mistreatment of DSP drivers. The Senators say they are also seeking information regarding Amazon’s justification for refusing to bargain with union representatives of DSP employees and requiring DPSs to sign non-poaching agreements.
The signatories to the letter are led by U.S. Senator Chris Murphy (D-Conn.), a member of the U.S. Senate Health, Education, Labor, and Pensions Committee. Additional support for the letter came from the International Brotherhood of Teamsters, which expressed concerns that “Amazon’s DSP program is a scheme to avoid legal liability for high injury rates and the persistent mistreatment of DSP drivers.”
Specifically, the letter describes dangerous working conditions for DSP drivers, saying they are denied workplace relief such as air conditioning during extreme heat, snow tires in snowy weather, breaks during long work hours, and shifts with no access to restrooms.
In addition, the letter accused Amazon of taking steps to discourage the formation of unions. “Amazon is also facing numerous allegations of flagrant violations of the National Labor Relations Act, including refusal to recognize and bargain with workers who recently voted to unionize with the Teamsters, holding captive audience meetings to stifle worker organizing efforts, reducing DSP routes in response to union activity, and terminating DSP employees in retaliation for union organizing and other protected activities,” the senators said.
Additional signers of the letter include three Republican and 25 Democratic senators: Tammy Baldwin (D-Wis.), Richard Blumenthal (D-Conn.), Sherrod Brown (D-Ohio), Ben Cardin (D-Md.), Bob Casey (D-Pa.), Catherine Cortez Masto (D-Nev.), Tammy Duckworth (D-Ill.), Josh Hawley (R-Mo.), Martin Heinrich (D-N.M.), Maizie Hirono (D-Hawaii), Amy Klobuchar (D-Minn.), Ed Markey (D-Mass.), Roger Marshall (R-Kansas), Jeff Merkley (D-Ore.), Gary Peters (D-Mich.), Jack Reed (D-R.I.), Jacky Rosen (D-Nev.), Bernie Sanders (I-Vt.), Brian Schatz (D-Hawaii), Debbie Stabenow (D-Mich.) Tina Smith (D-Minn.), J.D. Vance (R-Ohio.), Chris Van Hollen (D-Md.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), Raphael Warnock (D-Ga.), Sheldon Whitehouse (D-R.I.), and Ron Wyden (D-Ore.)
Teamsters General President Sean M. O’Brien echoed the claims in the Senators’ letter. “Amazon controls every facet of the job for DSP drivers, including their routes, vehicles, and uniforms, and subjects them to constant surveillance and harassment. Yet Amazon claims these workers are not its employees. It’s a joke. Everyone knows these are Amazon drivers,” O’Brien said in a release. “Amazon has created a vast delivery network that drives down wages and erodes safety standards, undermining what should be good American jobs in the logistics industry. We must work together to hold Amazon accountable and take responsibility for its workers.”
However, Amazon disputed the group’s charges, saying its Amazon-branded vans are equipped with the latest safety features, enabling reduced accident rates and lower injury rates for drivers than the industry average.
“This letter is misinformed and inaccurate. The safety and health of our employees, partners, and communities is our top priority, and since launching the Delivery Service Partner (DSP) program in 2018, we’ve invested more than $8 billion in state-of-the-art technologies, safety training, rates, programs, and services for DSPs and their drivers,” Amazon spokesperson Kelly Nantel said in a statement.
“Contrary to false claims in the letter, all of these vehicles have air conditioning as a standard feature and routes are designed to allow for ample breaks. DSPs are small business owners and entrepreneurs who are creating good jobs, with great pay and benefits, for more than 275,000 drivers around the world. We strongly dispute the claims in the letter and look forward to sharing the facts,” Nantel said.
Editor's note: This article was revised on January 30 to include a statement from Amazon.
Just 29% of supply chain organizations have the competitive characteristics they’ll need for future readiness, according to a Gartner survey released Tuesday. The survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive.
Gartner surveyed 579 supply chain practitioners to determine the capabilities needed to manage the “future drivers of influence” on supply chains, which include artificial intelligence (AI) achievement and the ability to navigate new trade policies. According to the survey, the five competitive characteristics are: agility, resilience, regionalization, integrated ecosystems, and integrated enterprise strategy.
The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.
Less than a third have met that threshold.
“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” Pierfrancesco Manenti, vice president analyst in Gartner’s Supply Chain practice, said in a statement announcing the survey results.
“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti also said in the statement. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three to five years. The top five drivers are: achievement capability of AI (74%); the amount of new ESG regulations and trade policies being released (67%); geopolitical fight/transition for power (65%); control over data (62%); and talent scarcity (59%).
The analysis also identified four unique profiles of supply chain organizations, based on what their leaders deem as the most crucial capabilities for empowering their organizations over the next three to five years.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.