Amazon is launching a new supply chain service, aiming to replicate the success path of Amazon Web Services (AWS) in cloud computing within the logistics sector.
Over the past two decades, Amazon transformed AWS from an internal project designed to optimize its own technology systems into a leading global cloud services business. Now, the company intends to apply this model by opening its extensive global supply chain network to serve more corporate clients—including merchants that do not operate stores on Amazon’s retail platform.
Peter Larsen, Vice President of Amazon’s Supply Chain Services, stated, “This logistics network was initially built more than twenty years ago for our own operations, and was later opened to sellers on the Amazon platform. Now, we are making it available to all businesses across industries and of all sizes.”
The U.S. company with the largest revenue officially announced on Monday the launch of Amazon Supply Chain Services. This service provides a one-stop solution for various enterprises, such as consumer goods manufacturers and apparel retailers, enabling them to outsource logistics services including Amazon’s warehousing and fulfillment, ocean and air freight, and road transportation.
By consolidating all its supply chain services into a unified platform, Amazon is effectively transitioning into a third-party logistics (3PL) provider, positioning itself to compete with major transport and warehousing giants such as DHL, Kuehne + Nagel, and DSV.
According to data from research firm Armstrong & Associates, the global third-party logistics services market is estimated to exceed $1.3 trillion. This strategic move positions Amazon to capture a larger share of this expansive market.
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