Amazon continues to expand its business far beyond traditional online sales. The company launched Amazon Supply Chain Services, which allows outside companies to use its logistics network. Now Amazon is getting ready to work not only with marketplace sellers, but also with manufacturers, suppliers and industrial companies, including those from the automotive industry.
The new service combines warehouses, freight transport, goods distribution and door-to-door delivery. Essentially, Amazon is offering a ready-made logistics system for businesses. Moreover, it can be used even without placing goods on the Amazon platform. For the transportation market, this is a significant event, because previously the main roles were played by companies like FedEx, UPS and DHL.
Amazon, in turn, offers huge infrastructure: more than 200 distribution centers, around 80,000 trailers, 24,000 containers and more than 100 cargo aircraft. The company is confident that this system will speed up parts shipments and reduce manufacturers’ expenses.
Many analysts already compare Amazon’s new initiative with AWS. Once, the cloud service was created for the company’s internal tasks, and then transformed into one of the global market leaders. Now Amazon is trying to do the same thing in the logistics industry.
Experts believe that the company could drastically change the vehicle logistics market. Amazon has a huge amount of data, automated warehouses and a developed IT infrastructure. All of this helps track shipments faster and build delivery routes more effectively.
