Amazon is turning its massive internal logistics network into a commercial service for outside companies. Through a newly launched division called Amazon Supply Chain Services (ASCS), the retail giant is granting external businesses access to the exact same infrastructure that powers its own global operations.
Whether operating a small startup or a large corporation, companies can now utilize Amazon for their fulfillment, shipping, sales support, and parcel delivery needs. Peter Larsen, Vice President of ASCS, compares this strategic shift to the creation of Amazon Web Services. Just as it did with cloud computing, Amazon is taking the physical infrastructure, data systems, and global reach it spent decades building and offering them as a service to other enterprises.
Clients who tap into ASCS gain access to a comprehensive, multi-modal transport network spanning road, rail, sea, and air. To support this massive undertaking, Amazon operates a dedicated fleet featuring more than 100 aircraft, over 24,000 intermodal containers, and upward of 80,000 trailers.
This aggressive expansion into commercial logistics creates intense new competition for traditional freight and parcel delivery carriers. Investors reacted positively to the strategic move, sending Amazon’s stock price higher immediately following the announcement.