Amazon takes on FedEx and UPS by letting other companies use its global warehousing and delivery network
- You don’t have to be an Amazon seller to use ASCS
- ASCS and AWS have a lot in common, and this could be a good thing
- GPS tracking, photo on delivery, 80,000+ trailers and more are all available
Amazon has launched Amazon Supply Chain Services (ASCS) business, opening up its logistics network to external businesses for the first time.
Through the new business, companies can use Amazon’s existing network of warehouses and transportation services to store, move and deliver goods across the entire supply chain.
The company explained the ASCS business came about after it sought to solve an internal problem – to bring quick deliveries to its own customers – and now it wants to make that available to everyone.
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Amazon Supply Chain Services is Amazon’s answer to FedEx, UPS
Amazon likened the creation of ASCS to the inception of AWS – the cloud company initially launched to serve Amazon before being sold globally. Now, AWS is generally considered the biggest market share holder across cloud.
Just like other shipping companies, ASCS customers don’t need to sell on Amazon to be able to use ASCS – Procter & Gamble, 3M, Lands’ End and American Eagle Outfitters have already signed up as early customers.
The company boasted of its 80,000+ trailers, 24,000+ shipping containers and 100+ partner-operated aircraft to support global logistics, as well as years of work strategically placing fulfilment warehouses to optimize last-mile delivery.
“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,” ASCS VP Peter Larsen commented.
The ASCS website highlights other perks, including GPS-powered tracking, photo on delivery and easy returns.
Company shares rose around 2% following the announcement, while FedEx and UPS shares dipped slightly at the same time.
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You don’t have to be an Amazon seller to use ASCS ASCS and AWS have a lot in common, and this could be a good thing GPS tracking, photo on delivery, 80,000+ trailers and more are all available Amazon has launched Amazon Supply Chain Services (ASCS) business, opening up its…
