Amazon has announced the launch of Amazon Supply Chain Services (ASCS), which extends its internal logistics operations initially limited to its own retail business to companies of all types.
According to a May 4 release, ASCS includes Amazon’s full slate of freight, distribution, fulfillment and parcel shipping services, now supporting third-party logistics for healthcare, automotive, manufacturing and retail businesses. That includes the company’s 80,000-plus trailers, 24,000 intermodal containers, 100 aircraft, and 200 U.S.-based fulfillment centers.
“With the launch of ASCS, we’re confident we can give any other business access to the same cost efficiency, reliability, and speed that we’ve built for Amazon customers,” said ASCS VP Peter Larsen.
According to Amazon, Procter & Gamble, 3M, Lands’ End and American Eagle Outfitters are all already using ASCS to transport raw goods to production facilities, move finished goods to distribution centers, deliver online orders and fulfill sales orders. The service also includes access to Amazon’s AI forecasting models for supply chains, which are used to determine inventory placement in fulfillment centers.
Speaking to BloombergIntegrity Asset Management portfolio manager Joe Gilbert called the service “a shot across the bow to the entire transport market,” with FedEx and UPS shares each falling by 10% following the announcement from Amazon. Moving forward, ASCS is expected to have a substantial impact on air freight companies, parcel carriers, truckers, railroads, warehouse operators and ocean shippers, all of whom stand to lose business to Amazon’s offering.
