Amazon Unveils Supply Chain Services for 7-Day Delivery, Signs P&G and 3M
Amazon launched Supply Chain Services to handle shipping, warehousing and seven-day delivery for external clients such as Procter & Gamble, 3M, Lands’ End and American Eagle. This logistics push, along with surging diesel and jet fuel costs, has pushed Dow Transports lower, raising margin concerns for FedEx and UPS.
1. Launch of Amazon Supply Chain Services
Amazon introduced Amazon Supply Chain Services (ASCS) to offer end-to-end logistics—ocean freight, warehousing and seven-day delivery—to businesses beyond its marketplace. Major brands including Procter & Gamble, 3M, Lands’ End and American Eagle have signed up, leveraging Amazon’s existing Fulfillment by Amazon network that has shipped over 80 billion items since 2006.
2. Competitive Impact on Transport Sector
By opening its delivery network, Amazon directly challenges FedEx, UPS and DHL, prompting a 10 percent drop in UPS and a 9 percent slide in FedEx shares while Amazon stock rose about 1 percent. Combined with record diesel and jet fuel prices squeezing margins, the Dow Transports index fell below its breakout level, signaling broader sector pressure.