New supply chain service expands beyond marketplace sellers, mirroring AWS playbook
Amazon on Monday said it will open its extensive shipping and delivery network to businesses beyond those selling on its own platform, marking a significant expansion of its logistics play.
The new offering, dubbed Amazon Supply Chain Services (ASCS), allows companies to outsource end-to-end logistics operations to Amazon. This includes moving goods internationally, warehousing inventory, and last-mile delivery to customers’ homes throughout the week.
“Amazon is bringing the infrastructure, intelligence, and scale of its supply chain services, proven over decades, to businesses everywhere, much like Amazon Web Services did for cloud computing,” said Peter Larsen, vice president of Amazon Supply Chain Services.
Major companies such as Procter & Gamble, 3M, Lands’ End and American Eagle have already signed up for the service.
Amazon likened the initiative to the evolution of Amazon Web Services. Initially developed as an internal tool, AWS grew into a major revenue engine by offering its capabilities to external clients. The company is now aiming to replicate that success in logistics.
Since 2006, third-party sellers on Amazon have relied on its Fulfillment by Amazon programme to manage storage, packaging and shipping. The company said more than 80 billion items have been delivered through the service so far. However, access to its logistics network was largely limited to sellers operating on its marketplace, according to copmpany issued statement.
