Amazon Launches Supply Chain Services To Expand Logistics Offering

(RTTNews) - Amazon Inc. (AMZN) has rolled out Amazon Supply Chain Services, expanding its logistics capabilities to businesses across various fields.

This new service gives third parties access to Amazon's freight, distribution, fulfilment, and parcel delivery systems tools initially created for its retail operations and marketplace sellers. With ASCS, Amazon is now targeting industries such as healthcare, manufacturing, automotive, and retail.

The platform is designed to help businesses handle their inventory, shipping, and delivery all in one place, making things more efficient and reliable. It also taps into Amazon's AI tools for demand forecasting and inventory placement.

Peter Larsen, Vice President, mentioned that this initiative hopes to replicate the success of Amazon's cloud business by making its supply chain infrastructure widely accessible. He emphasized that logistics have always set Amazon apart, allowing for quick and reliable delivery on a large scale.

Some major companies have already started using parts of this service. For instance, Procter & Gamble and 3M are taking advantage of Amazon's freight capabilities, while Lands' End is utilizing the inventory management system. American Eagle Outfitters is tapping into Amazon's parcel delivery network for direct-to-consumer shipments.

ASCS provides comprehensive logistics support, covering everything from global freight transport by air, sea, rail, and ground to warehousing and last-mile delivery. Amazon pointed out its massive infrastructure, including thousands of trailers, containers, and aircraft, as a major strength.

This launch marks an important step for Amazon in promoting its logistics network as a separate service, creating a new avenue for growth beyond its traditional retail and cloud operations.