Key Points
- Amazon opens its freight, warehousing and delivery network to external businesses globally
- Procter & Gamble, 3M, Lands’ End and American Eagle among first external clients
- Network includes 80,000 trailers, 24,000 intermodal containers and over 100 aircraft
Amazon has opened its internal logistics and supply chain infrastructure to businesses outside its marketplace, launching a service that lets companies of any size use the same freight, warehousing and delivery network the e-commerce giant built for its own operations.
The service, called Amazon Supply Chain Services (ASCS), marks Amazon’s attempt to compete directly with third-party logistics providers. The company said it would offer end-to-end supply chain management — from ocean freight and air cargo to warehouse storage and final-mile parcel delivery — to businesses in healthcare, automotive, manufacturing and retail.
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What Amazon Supply Chain Services offers businesses
The service draws on infrastructure Amazon developed over two decades to support its retail operations. This includes a transportation network of more than 80,000 trailers, 24,000 intermodal containers — standardised cargo boxes that move between ships, trains and trucks without unpacking — and over 100 aircraft.
Peter Larsen, vice president, Amazon Supply Chain Services, said the company was extending capabilities it had previously reserved for itself and its marketplace sellers.
“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,” Larsen said.
The service comprises three core offerings. The freight service handles ocean, air, ground and rail transportation with customs clearance and shipment tracking. The distribution and fulfilment service allows businesses to store inventory in Amazon’s warehouses and position stock closer to where customers are located. The parcel shipping service offers delivery within two to five days, seven days a week.
Amazon said businesses could also use its demand forecasting tools — software that uses historical sales data and market signals to predict how much inventory to hold and where to place it — to reduce stockouts and overstocking.
Major brands sign on as early clients
The company announced four multinational corporations as early adopters of the service. Procter & Gamble is using the freight service to move raw materials to factories and finished products across its distribution network. 3M is transporting goods from manufacturing sites to distribution centres worldwide through the same service.
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Lands’ End, the American clothing retailer, is using what Amazon calls a unified inventory pool — a single stock of products that can fulfil orders from multiple sales channels including websites, marketplaces and physical stores.
American Eagle Outfitters is using the parcel delivery network to ship online orders from its American Eagle and Aerie websites directly to customers across the United States.
Indian businesses
The announcement comes as global logistics providers expand their presence in markets like India, where e-commerce growth has driven demand for faster and more reliable delivery infrastructure.
Indian businesses that import goods or sell through multiple channels — their own websites, Amazon’s marketplace and physical retail — may find the unified inventory approach relevant to their operations.
Amazon said the service had been tested over three years with hundreds of thousands of sellers on its marketplace, handling what the company described as hundreds of millions of packages through third-party facilities and warehouses. The launch extends this to businesses that do not sell on Amazon’s platform at all.
The company did not disclose pricing for the service or specify which markets outside the United States would have access at launch.
Your Questions, Answered
What is Amazon Supply Chain Services?
Amazon Supply Chain Services is a new offering that allows businesses outside Amazon’s marketplace to use the company’s logistics infrastructure, including freight transportation, warehouse storage and parcel delivery services.
Which companies are using Amazon’s new logistics service?
Procter & Gamble, 3M, Lands’ End and American Eagle Outfitters are among the first businesses to use Amazon Supply Chain Services for freight, distribution and delivery operations.
What infrastructure does Amazon offer through this service?
The service includes access to over 80,000 trailers, 24,000 intermodal containers and more than 100 aircraft, along with warehousing facilities and last-mile delivery capabilities.
Is Amazon Supply Chain Services available in India?
Amazon has not specified which markets outside the United States will have access to the service at launch. Indian businesses should monitor announcements for regional availability.