Amazon opens logistics network to other businesses

Amazon said on May 4 it is rolling out Amazon Supply Chain Services, a new offering that lets other businesses use its logistics network to store, move, and deliver goods.

The service will handle shipments ranging from raw materials to finished products, extending access to Amazon’s supply chain infrastructure beyond its own retail operations.

Amazon said its infrastructure includes a fleet of more than 100 cargo planes and a large network of warehouses and sorting hubs, alongside services such as distribution, fulfillment, and parcel delivery.

Companies can use the system across sales channels including their own websites, social media, and physical stores. Amazon said customers already include Procter & Gamble, 3M, and American Eagle Outfitters.

🔗 Source: Amazon

🧠 Food for thought

Implications, context, and why it matters.

Amazon opens a long-built logistics network to outside businesses

Amazon has spent years building this service. It is now letting other companies use its logistics network to store, move, and deliver goods 1.
Amazon Supply Chain Services (ASCS) adds freight, distribution, fulfillment, and parcel shipping in a modular setup for businesses of many sizes, including companies that do not sell on Amazon’s marketplace 1.
Amazon sends off-platform orders in unbranded packaging by default. The company also bars teams from using non-public data from Multichannel Fulfillment (MCF), Amazon’s service for orders placed outside its marketplace, when making sourcing, inventory, or pricing choices for products in its own store, including store brands 2.

The AWS model moves from software to shipping

Amazon compares this rollout with Amazon Web Services (AWS), when it turned internal IT systems into a product. The company plans to offer the same “infrastructure, intelligence, and scale” from its supply chain operation to “businesses everywhere” 1.
The rollout hit logistics stocks. Shares of FedEx and United Parcel Service (UPS) fell after the announcement 3.
Amazon now competes more directly across freight, distribution, fulfillment, and parcel shipping. Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters already use parts of its supply chain services 1.