Amazon Supply Chain Services: Duopoly No More

After years of the FedEx/UPS shipping duopoly, there’s a formidable new competitor on the road. On May 4, Amazon announced the launch of ++Amazon Supply Chain Services++ (ASCS), a service it calls “one network to move, store, and deliver goods for every business.”

We’ll tell you everything we know about ASCS, who’s eligible to use it, and whether now is the time to switch from FedEx or UPS to Amazon.

What is Amazon Supply Chain Services?

Amazon is a household name, known for fast, reliable deliveries. The groundwork that’s been laid internally over the past decades is now available to businesses. ASCS core offerings include:

Domestic and Global Freight - More than 80,000 trailers, 24,000 intermodal containers, and 100 aircraft ensure the timely transportation of goods. They guarantee the same priority, care, and urgency as Amazon parcels, and offer special handling for pharmaceuticals, temperature-controlled goods, and dangerous goods.

Distribution and Fulfillment - In addition to importing inventory from abroad, Amazon has over 200 US-based fulfillment centers for optimized inventory placement, bulk replenishment, and customer order fulfillment. Advanced logistics enable order fulfillment across all channels, including the shipper’s website, social media, e-commerce marketplaces, and brick-and-mortar shops.

Parcel Shipping - Shippers can expect 2- to 5-day delivery timeframes and 7-day-a-week service, with pickup from their own warehouses or third-party sites. Amazon offers over 30 third-party integrations, so businesses can keep selling as usual– with a speedier shipping process. From label creation to photo delivery, shippers get GPS-powered tracking for greater visibility on the entire process.

Who Can Use Amazon Supply Chain Services?

Peter Larsen, vice president of Amazon Supply Chain Services, said, “Supply chain wasn’t just a function at Amazon—it was core to providing an exceptional shopping experience. Our differentiator. The reason we could offer fast, dependable delivery that nobody else could.”

In the past, Amazon’s logistics services were limited to its own operations and Amazon sellers. With this new launch, all retail, wholesale, and commercial businesses located in the USA, China, or Hong Kong can benefit from Amazon’s freight, distribution, fulfillment, and parcel shipping solutions.

How Are Companies Using ASCS?

Amazon’s ++press release++ detailed how different brands are already using ASCS. Examples include Procter & Gamble using freight services for raw materials and finished goods, 3M moving goods from manufacturing to distribution centers globally, Lands’ End fulfilling orders across multiple channels, and American Eagle Outfitters, Inc. delivering parcels directly to customers across the US.

Should You Make the Switch?

Amazon’s ability to deliver is undisputed. It handles peak demand with ease and pivots quickly in the face of unprecedented events. Is that enough to change your strategy?

Maybe.

It’s certainly a bargaining chip when you negotiate your FedEx and UPS contracts.

Shipping is changing, and you need someone on your side of the negotiating table with all the latest facts. Trust ShipRx with your parcel rate negotiations to ensure you’re getting the best rate given the entry of ASCS onto the scene.

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