Amazon launches Amazon Supply Chain Services, aims to replicate AWS

Amazon launched Amazon Supply Chain Services in a move that aims to monetize its logistics network in a way that rhymes with what it did for IT infrastructure with AWS.

The company said Amazon Supply Chain Services (ASCS) will court businesses of all sizes in retail, wholesale and commercial markets and be able to store raw materials and finished products. ASCS said early customers include Procter & Gamble, 3M, Lands' End and American Eagle Outfitters.

Amazon's logistics network has supported the company as well as third party sellers and now has become a full-fledged third-party logistics company. Peter Larsen, vice president of ASCS, said supply chain services rhymes with what AWS has done. "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," said Larsen.

ASCS has multiple services ranging from moving goods to package delivery and storage of goods. For instance, Procter & Gamble is using Amazon to transport raw materials to production facilities and move finished goods, 3M is using freight services and Lands' End is using a unified inventory pool within Amazon's network.

The launch of ASCS also puts Amazon in more direct competition with FedEx and UPS. ASCS will offer freight, distribution and fulfillment and parcel shipping.

Pricing for ASCS depends on multiple factors, but has a simple system without hidden fees, volume-based discounts and preferred pricing based on volume.