Satish Jindel Says Amazon Will Crush Other Retailers (Audio)

you've not seen anything yet. We're gonna be talking about Amazon, its logistics business and its ability to crush almost everything in between the producer and the consumer of a product. But right now, let's go to Katherine Cownterie in the Bloomberg news room for you Bloomberg Business Flash. Thank you, Pam Bloomberg. Taking Song has brought to you by the

American Arbitration Association. Business disputes are inevitable, resolve them faster with the American Arbitration Association, the global leader in alternative dispute resolution for over eighty five years. Learn more at a dr dot org. The stock market has reversed direction and is gaining for the first time in four days. The smallest job's advance in seven months, is fueling speculation that the Fed Reserve will look to raise interest rates gradually.

The report showed employers added one hundred sixty thousand jobs last month. That's far fewer than the two hundred thousand that economists had anticipated. John Canally, chief economic strategist at LPL Financial, says for stock investors, the report was mixed. Not strong enough the cause of FED rate hike in June, which is good, but also not weak enough to suggest

that there's a global growth scare. So it was a narrow path for this report to actually be somewhat favorably viewed by markets, and I think we hit that path alough it might be on flood on the side of a week. We check the markets every fifteen minutes throughout the trading day. Down industrial average is up sixty three points a third percent, trading at seventeen thousand, seven hundred twenty three. Smp f I thundered up five points at quarter percent to two thousand fifty five. The NASTACAZ up

twelve points a quarter percent. Its trading at eight West Texisinemedia Crude oil up thirty one cents a barrel to forty four sixty three spot gold up eighteen dollars. Announciense a cane at one point four percent, trading at twelve ten year treasury down eight thirty seconds with the yield of one point seven seven percent. Among today's top business stories, Charter Communications has cleared its last federal hurdle to become the second largest cable company in the US. The FCC

has approved its murder with Time Warner Cable. The development leads approval from California as a final regulatory hurdle for the fifty five billion dollar deal. It's three thirty two on All Street and having dis time to get an update of some of the other stories were following right here on Bloomberg Radio. Thank you Catherine from the Bloomberg Newsroom. I'm a Lisa Parenti. This news update is brought to you by the Jeep Grand Cherokee, the most awarded suv ever.

The Grand Cherokee continues to raise the bar with its luxurious interior and legendary four by four capability. Drive one at your local Jeep dealer Today. President Obama, answering questions from reporters today, refused to comment directly on Donald Trump becoming the presumptive Republican presidential nominee, but the President called Trump the standard bearer of the GOP and said voters and the media need to examine his policy positions and

statements carefully going forward. This is not entertainment. There's not a reality show. This is a contest for the presidency of the United States. As for the Democrats, Mr Obama said he won't make an endorsement until the primary process plays out. He said he expects both candidates to work to unify the Democratic Party for the general election. Pentagon Press Secretary Peter Cook says the attack by Islamic State in Iraq this week that killed Petty Officer first Class

Charles Keating took officials by surprise. And the forces they're been able to see this attack coming, they would have responded differently to it. Perhaps this could have been avoided. That's certainly something that that we're looking at carefully. Keating is the third U s Service member to be killed in combat in a Rock since US forces returned there in two Police on Long Island say stepped up efforts

to fight an opioid crisis are paying off. Suffolk Police have made more than one hundred fifty arrests and sees more than one million dollars this year. Global News twenty four hours a day, powered by our twenty four hundred journalists and more than one hundred fifty news bureaus around the world. From the Bloomberg News Room, I'm Alisa Parenti, Katherine,

thank you. And now let's get a quick update of the equity benchmarks down Industrial averages up fifty five points at seventeen thousand, seven hundred sixteen smp F I founded, up three and a half points at two thousand, fifty four nasat higher by nine points trading at And that's a Bloomberg business flash. You're listening to Taking Stock with Kathleen Hayes and Pim Fox on Bloomberg Radio. Amazon. Amazon will least twenty Boeing seven six seven jets from Atlas

world Wide. That was announced yesterday. In March, Amazon also agreed to least twenty Boeing seven six sevens from air Transport Services Group. So is Amazon getting into the airline and logistics business. Let's find out from my next guest, Satish Jendal, joins me. Now, Satis Jendal is an expert when it comes to the world of logistics and transport. He is the founder and the president of s J Consulting Satish. Always a pleasure, Thanks for coming in, Thanks

for having um. It just set the record so people understand a little bit about your experience, so that they are aware that you know a lot about logistics and also about the changing nature of who's in the logistics business. I have worked with every global transportation provider that we have, from FedEx, do Ups to d h L to T

and T and on and on. And I've been in this industry thirty some years, have been part of all the major changes the industry has had an influence many of them, and have worked with overtoned companies around the globe. So and also deal with many of the retail shippers through the technology of ship Matrix and have got great insight into the paints they're experiencing. All right, So, now, did you ever think that you will be writing about

Amazon as a shipping and logistics company? You know, for people who know me, they are shocked that I could put up paper like that about Amazon out And when you had me on the taking Stock television a year ago about minions, you saw what I had to say about it. Amazon is a company that is a very large company, but it operates like a very small company. When they've put ideas, they don't waste time analyzing and analyzing for a year it becomes dated. They implement and

they test it. If it works, they go forward. If it doesn't, they move on to something else. And Amazon is going to change the way people think of retail sector. And let me put in perspective. Not many people will realize that there used to be a time when when you bought something from a retail store and you took it back, they won't take it back. You couldn't take it back. There was no returns, and if some of

them did take it, there the stocking fee. Today, every retailer takes our return returns are very expensive for our retailer. So what do they do? They take it? But then who's paying for it? Everyone? It's part of the business model Amazon exchanging that where they're gonna say free shipping is part of the business model. You have to find ways to recover the cost of shipping. And Amazon has got the best model for it. That's gonna crush other

retailers who are struggling with it. Social investors who are invested in fed X and UPS, should they be concerned. They should be concerned from the perspective that those companies need to respond at a faster pace to the changes taking place in the e commerce world, and to the extent that some of them will tell their investors that we're not losing any business because our customers are not

going to Amazon. What Amazon is doing is when they are shipping a billion packages a year and managing it themselves. Those packages would have been part of a fed X or a UPS or a post off the network. The report that you put together about Amazon. Where can people access this so that they can learn a little bit more in detail? They can't get the details for free.

We've spent three months, over two fifty hours of research assembling it, and people who wanted are placing orders for it, and they can buy They can get the highlight from the articles that they have been published. Vast Peak is going to be including that in one of their reports, but for the full details and the charts and the tables, they would have to buy it. How much is this going to cost Amazon to put together or is that

immaterial for a company of this size. You know Amazon is going to spend sixteen billion on all of this for this year, on the outbound shipping twenty two billion next year. That's a lot of money, but it is still a better model for them because what Amazons approaches that my customer is my customer, and I want them to have my kind of experience from the time they place the order till it is delivered to their doorstep.

Turning it over to a carrier and washing your hands off like retailers to is not the customer satisfaction model that they are pushing, which I think is a very high level of customer satisfaction. And they're going to to English themselves from that perspective and whatever it takes for them to build this, they're not trying to build it. They're trying to control the distribution and the fulfillment. And it's the control that's important that doesn't cost as much

as building it. Is. This also part of their strategy to expand outside the United States. I mean, obviously it already is global, but to reach even deeper into emerging economies where they want to be big players. Yes, and they're already doing that in India. I know it from being my home country. They're doing it in Europe. Look at their buying an airport in Germany. They can control of it and what they plan to do. And this

is where people don't realize. The biggest target for Amazon in their corporate offices is another company starts within eight and it's not Walmart, and it's not Target and others. It's Alabama. Because Alabama is approaching it in the perspective, they're saying, I'm gonna make it easy for the manufacturer to sell directly to the consumer, which is the real

value of Internet is connect pieces people without middleman. Amazon is saying, ah, when it comes to product moving, I'm going to control that because distribution is critical the goods moving from one point to the other. And I'll have the cheapest and the fastest solution that no manufacturer will be able to offer. Thank you very much, Satisue Gindle of s J and southing. Where where's the airport in Germany? Maybe we'll go visit. It's near Frankfoot. Aye, we'll take

a little ship there in Amazon's new airport. Thank you very much, satis Gender On Amazon, it wants to rule the world. Coming up on taking stock, We're going to take stock of impact investing, What is it sustainable investing and what portion of your portfolio should it be dedicated to. That's next