In a move to leverage the company’s supply chain infrastructure, Amazon is opening its portfolio of freight, distribution, fulfillment and parcel shipping operations to outside businesses of all types and sizes.
The launch of what the company is calling Amazon Supply Chain Services (ASCS) will open what was originally developed to power internal retail operations and support independent selling partners in its marketplace worldwide to outside business. The launch of ASCS builds on its advancement of what it has established in its marketplace operations to support third-party logistics for businesses in industries including retail, healthcare, automotive and manufacturing.
Amazon stated it offers flexible, scalable solutions that grow with businesses using its network as their needs evolve from moving goods into warehouses to package delivery. As it prepared the supply chain network expansion, Amazon reported it already has begun working with Lands’ End, which is using a unified inventory pool within the company’s network to fulfill orders across multiple sales channels. At the same time, American Eagle Outfitters is employing Amazon’s parcel shipping network to deliver online orders from its namesake and Aerie website directly to customers across the United States. In addition, Procter & Gamble is using Amazon’s freight services to transport raw materials to production facilities and move finished goods across its distribution network and 3M is using Amazon’s freight services to move products from its manufacturing sites to distribution centers worldwide.
Amazon asserted ASCS can help additional businesses improve speed, reliability and efficiency, even through peak demand and unexpected disruptions. Not only that, but third-party operations outside of its current network can benefit from Amazon’s forecasting models and supply chain dataset, the company stated, which can help optimize inventory placement.
The core offers are, according to Amazon:
- Freight. Amazon’s transportation network of ocean, air, ground and rail freight assets, supported by a fleet of more than 80,000 trailers, 24,000 intermodal containers and 100 aircraft, can provide dependable capacity with a range of speed and service options, including time-sensitive shipments, simplified booking, customs clearance and end-to-end shipment visibility.
- Distribution and Fulfillment. Amazon can aid businesses in importing inventory from outside of the United States, store inventory in bulk, position goods closer to demand and fulfill customer orders across their sales channels within a single network, which allows them to leverage a unified inventory pool and forecasting capabilities that can boost agility, inventory accuracy and delivery.
- Parcel Shipping. Amazon will provide shipping capabilities for orders placed across all sales channels, with predictable two-to-five-day delivery speeds and seven-day-a-week service, flexible pickup from its partner warehouses or third-party providers, access to drop-off locations and increased visibility into shipment tracking.
As the logistics expansion launches, Amazon opened access to a centralized console that allows businesses to discover, select and sign up for the various ASCS solutions at supplychain.amazon.com.
“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. “Supply chain wasn’t just a function at Amazon; it was core to providing an exceptional shopping experience. 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.”
