Amazon has opened its global freight, distribution, fulfilment and shipping capabilities to businesses of all types to use to deliver orders placed on their own websites or elsewhere beyond Amazon.co.uk.
The e-commerce giant likened the new Amazon Supply Chain Services (ASCS) to its cloud computing arm Amazon Web Services (AWS) – something it built for its own purposes before being opened up to other businesses.
Procter & Gamble was revealed as an early adopter of ASCS. It is using Amazon’s freight services to transport raw materials to production facilities and move finished goods across its distribution network.
The new service was “bringing our end-to-end logistics capabilities to any business, in any industry” said Cheyney Cartwright, head of Amazon Shipping UK. “Moving, storing, and delivering goods. Not just for Amazon sellers.
“What started as a network built to serve Amazon customers has become something any business can now access. Watching that happen from the inside is something special,” Cartwright added.
ASCS is made up of three arms – freight, distribution and fulfilment, and parcel shipping.
The freight offering provides “dependable capacity with a range of speed and service options, including time-sensitive shipments, simplified booking, customs clearance, and end-to-end shipment visibility” Amazon said. Its parcel shipping service means non-Amazon sellers can offer “predictable two-to-five-day delivery speeds and seven-day-a-week service”.
“Businesses can benefit from flexible pick-up from their own warehouses or third-party providers and track shipments from label creation to customer doorsteps,” Amazon added.
Peter Larsen, vice president of ASCS, said: “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.
“Supply chain wasn’t just a function at Amazon – it was core to providing an exceptional shopping experience,” he added. “Our differentiator. The reason we could offer fast, dependable delivery that nobody else could. And 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.”
The announcement saw the share price of several logistics firms – including GXO, XPO, UPS, FedEx and CH Robinson – take a tumble in its wake today.
Industry commentator Brittain Ladd, a former Amazon executive, said the announcement meant “3PLs are in a world of hurt”.
“Amazon is going to steamroll the logistics industry,” he added. “I don’t care how long a 3PL has done business with a customer. When customers learn that Amazon can reduce their costs 30% to 50%, and transition their logistics needs into Amazon’s ecosystem with minimal disruption, they will choose Amazon. Customers will leave 3PLs because they will get a better outcome with Amazon. Simple.”
No comments yet