Amazon has opened up its logistics operations to outside companies, allowing them to use its global supply chain system. Through this new service, called Amazon Supply Chain Services, companies can move goods, store inventory, and deliver orders using Amazon’s infrastructure. The network – which includes over 100 cargo planes and a wide network of warehouses and delivery assets – was originally built for Amazon’s own retail operations. The service is already being used by large firms like Procter & Gamble and 3M.
Over the past decade, Amazon has invested tens of billions of dollars into building one of the most advanced supply chain systems in the world. This includes not only air cargo capacity but also tens of thousands of campers, containers, and last-mile delivery vehicles, along with a dense network of fulfillment centers, sorting hubs, and regional distribution facilities spread across North America, Europe, and Asia.
Unlike traditional logistics providers that typically handle specific segments of the supply chain, Amazon’s offering is designed to be end-to-end. Businesses can use it to transport goods from manufacturing hubs – particularly in Asia – through international freight channels, clear customs, store products in strategically located warehouses, and fulfill customer orders with rapid delivery. The system is supported by Amazon’s internal software tools, which provide real-time tracking, demand forecasting, and inventory optimization.
Importantly, the service is not limited to sellers on Amazon’s marketplace. Companies that operate independently of Amazon’s retail platform can still access its logistics capabilities, making this a direct play into the global third-party logistics (3PL) market. That sector is estimated to be worth over $1 trillion annually, with growing demand driven by e-commerce expansion, cross-border trade, and the need for faster delivery times.
The move also reflects Amazon’s long-term effort to reduce its reliance on external carriers like UPS and FedEx. Notably, during peak shopping seasons in the past, Amazon depended heavily on these companies to handle overflow demand. Therefore, by building its own logistics network, it gained greater control over delivery speeds, costs, and customer experience. And now, by opening that network to others, the e-commerce giant is attempting to turn a once cost-heavy operation into a major revenue-generating business.
Most importantly, Amazon revealed that it has already secured several major clients for its new supply chain service. These early adopters include global consumer goods giant Procter & Gamble, industrial leader 3M, and apparel retailers Lands’ End and American Eagle Outfitters.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
