Amazon has launched Amazon Supply Chain Services (ASCS), a logistics platform that enables other businesses to store and ship goods from raw materials to finished products through its vast network.
Amazon Supply Chain Services competes directly with third-party logistics companies by providing businesses of all sizes with access to the e-commerce giant’s freight, distribution, fulfillment, and parcel shipping capabilities. The service offers a full logistics process through a single network including ocean, air, road and rail freight transport.
Among the first companies to sign up for the supply-chain services were industrial heavyweight 3M, consumer goods giant Procter & Gamble and apparel firm American Eagle Outfitters.
Through this service companies will gain access to Amazon’s transportation network across ocean, air, ground and rail freight, supported by a fleet of more than 80,000 trailers, 24,000 intermodal containers and over 100 aircraft. Since 2006, Amazon has supported order fulfillment for independent sellers through its Fulfillment by Amazon (FBA).
Till date, the number of items shipped by sellers through FBA has exceeded 80 billion. Amazon has gradually provided individual logistics services to retail, wholesale and commerce companies over the past 3 years, and has now expanded it to a full opening.
Shares of Indian logistics provider Delhivery were under pressure after the announcement, dropping as much as 3.5% in early trading, stoking fears about competition in India’s logistics sector.
