Amazon has launched Amazon Supply Chain Services (SCS), opening up its entire logistics network to any business, including those that do not sell their products on Amazon. Amazon SCS is set to change the logistics landscape in the same way that AWS has changed the landscape of cloud services offerings for customers who do not want to own their own infrastructure.
Amazon SCS will offer material transportation, product distribution, customer order fulfillment, and long-distance delivery of goods in a single integrated platform. Their experience managing logistics and delivery for Amazon warehouses is now being used to offer the same services to external customers.
Among the companies that have used the Amazon SCS network are Procter & Gamble for raw material transportation, 3M for delivery to distribution centers, and American Eagle Outfitters for long-distance delivery to customers. Amazon can now also fulfill orders from Walmart, Shopify, and TikTok in the United States.
Amazon’s logistics scale is very extensive, including more than 200 distribution centers in the United States, 80,000 trucks, 100 aircraft, and experience in making 13 billion deliveries per year. The announcement of Amazon SCS has already caused shares of logistics companies such as DHL and FedEx to be affected.
