Amazon announced the launch ofAmazon Supply Chain Services (ASCS), a new subsidiary that opens its immense global logistics network to all companies, and not just to sellers on its marketplace. This initiative places Amazon directly in head-on competition with heavyweights in the sector such as UPS, FedEx and DHL.
What is the scope of this logistics offer?
ASCS is an end-to-end solution that encompasses freight, distribution, order fulfillment and package shipping.
Businesses can use the Amazon fleetcomposed in particular of tens of thousands of vans, more than 80,000 trucks and around a hundred cargo planes, as well as its network of more than 350 logistics centers around the world.
The service is aimed at various sectors such as health, automotive, electronics and retail. Companies have already signed up to use these new capabilities.
A strategy inspired by the success of AWS
For this diversification, Amazon draws a parallel with the birth of Amazon Web Services (AWS). Amazon first built cloud infrastructure for its own needs, before marketing it.
” Amazon is making the infrastructure, intelligence, and scale of its supply chain services available to businesses around the world, much like Amazon Web Services did for cloud computing “, says Peter Larsen, vice president of ASCS.
The objective is thus to transform an internal operational cost into a major new source of revenue.
Cold sweats for logistics specialists
Amazon’s entry into this market is seen as a real earthquake. Just observe the fall in stocks specialists in logistics on financial markets to convince themselves.
After reducing its dependence on traditional carriers for years, the Amazon group is now using its advantage to compete openly with them.
