TAKEAWAYS Shaping the Future of the Global Supply Chain
RURAL LAST MILE: PRIME OPPORTUNITY? Closing the delivery gap between urban and rural regions is a goal that has long posed operational and economic challenges for supply chain networks. The ecommerce boom has brought increasing focus on last- mile deliveries—and the di culties of accommodating the demand for fast and e ective last-mile operations in rural areas . Now, Amazon is making a major push to extend its fast delivery capabilities to rural and small-town communities across the United States. The company recently outlined a $4-billion investment to expand its logistics infrastructure aimed at enabling same- and next-day Prime delivery for millions of customers outside major metropolitan areas. The company claims that more than 300 small towns now receive packages with same- or next-day delivery, with continued growth planned. Amazon’s rural logistics expansion centers on optimizing its middle-mile and last-mile networks by leveraging a decentralized model. Rather than relying solely on large regional hubs, the company is integrating smaller, sub-regional facilities closer to rural customers, enabling packages to be sorted and shipped more e¢ciently. Amazon has also expanded its network of third-party delivery service partners and flex drivers to reach lower-density areas where traditional delivery models have faced logistical and cost barriers. For the logistics sector, Amazon’s rural buildout signals a shift toward greater investment in non-urban fulfillment models. This trend could drive innovation in cost-e¤ective routing, decentralized warehousing, and alternative delivery methods tailored for areas traditionally underserved by ecommerce.
In June 2025, the logistics sector marked the death of expedited delivery pioneer and FedEx founder Fred W. Smith, who passed away at the age of 80 in Memphis. Smith didn’t just build a company—he redefined the face of global logistics with the founding of FedEx in 1973, which he launched with 14 jets and 389 employees. Smith turned a bold college paper idea into one of the most significant supply chain innovations of the 20th century: a centralized hub-and-spoke system capable of overnight package delivery at scale. According to lore, the paper earned a C from his Yale professor, who dismissed the concept as impractical and unworkable at the time. Smith’s original vision is now standard expectation across industries. His decision to base operations in Memphis and build the FedEx SuperHub there turned the city into a global logistics capital. Fittingly, the Memphis International Airport is being renamed Frederick W. Smith International Airport. A former Marine, Smith credited his military experience in Vietnam with shaping his understanding of mission-critical operations, speed, and reliability. “Everything I did running FedEx came from my experience in the Marines,” Smith told the Associated Press in a 2023 interview. Under Smith’s leadership, FedEx pioneered several now-standard practices that grew out of that mission-critical approach: package tracking, barcode scanning, handheld delivery devices, and real-time visibility. Leaders from industry and government marked Smith’s passing with fitting tributes: “As the founder of FedEx, his leadership and innovation transformed global commerce, and he will be remembered for his relentless drive, patriotism, and commitment to service,” noted U.S. Senator Marsha Blackburn (R-TN). FedEx President and CEO Raj Subramaniam shared his thoughts: “Frederick W. Smith pioneered express delivery and connected the world, shaping global commerce as we know it. His legacy of innovation, leadership, and philanthropy will continue to inspire future generations.” HONORING A LOGISTICS LEGEND
24 Inbound Logistics • July 2025
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