Amazon is aiming to replicate its success with Amazon Web Services (AWS), which extended its cloud computing services to external clients, this time with supply chain services.
Amazon Supply Chain Services (ASCS) launched Monday, and will make the retailer’s freight, distribution, fulfillment and parcel shipping solutions available to businesses of all types and sizes. Major brands including Procter & Gamble, Lands’ End and American Eagle Outfitters already are using the services.
“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, VP of ASCS in a statement.
Supply chain management has been core to providing Amazon customers with an exceptional experience, Larsen said. “[It was] our differentiator,” he said. With the launch of ASCS, Amazon aims to give the same cost efficiency, reliability and speed to other businesses.
Procter & Gamble, Lands’ End and American Eagle Use ASCS
ASCS builds on Amazon’s logistics services, which have helped Amazon sellers to move, store and deliver packages across third-party facilities, warehouses and sales channels. Third-party logistics will now be available to healthcare, automotive, manufacturing and retail partners.
Several large-scale companies are already using ASCS.
Procter & Gamble is using Amazon’s freight services to transport raw materials to production facilities and move finished goods through its distribution network, and 3M is using Amazon’s freight services to move products from its manufacturing sites to distribution centers worldwide. ASCS freight services include ocean, air, ground and rail freight services with more than 80,000 trailers, 24,000 intermodal containers and 100 aircraft.
Lands’ End is fulfilling orders with a unified inventory pool within Amazon’s network. ASCS distribution and fulfillment services include importing overseas inventory, storage of bulk inventory, moving inventory closer to demand and fulfilling orders across channels within one network.
American Eagle Outfitters is using Amazon’s parcel shipping network to deliver online orders from its American Eagle and Aerie website to customers. Amazon’s parcel shipping services offer two- to five-day delivery speeds, seven days a week.
In addition to freight, shipping, and distribution and fulfillment, Amazon says its AI forecasting models can help optimize inventory placement.
