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Amazon Opens Logistics Network to Outside Businesses: What It Means

ASCS is a fully integrated, end-to-end logistics service that lets businesses use Amazon’s supply chain to move, store, and deliver products.
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Amazon Opens Logistics Network to Outside Businesses: What It Means
An Amazon Prime truck passes by a sign outside an Amazon fulfillment center on Staten Island, New York, on March 19, 2020. Kathy Willens/AP Photo
Panos Mourdoukoutas
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For years, Amazon’s logistics infrastructure was available only to its third-party sellers and customers. But that changed this Monday, with the eCommerce pioneer making its entire portfolio of freight, distribution, fulfillment, and parcel shipping capabilities available to every business in a head-to-head competition against UPS and FedEx.

Meanwhile, some logistics experts said the company’s new move could lead to more competitive shipping rates and ultimately lower prices for consumers.

A New Platform

On May 4, the company announced the launch of Supply Chain Services (ASCS)—a fully integrated, end-to-end logistics service that lets businesses use Amazon’s supply chain to move, store, and deliver products.
“Amazon is bringing the infrastructure, intelligence, and scale of its supply chain services—proven over decades—to businesses everywhere,” Peter Larsen, vice president of Amazon Supply Chain Services, announced on May 4.
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Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”