FedEx has said it is not significantly concerned about Amazon’s latest move to expand its third-party logistics services through the launch of Amazon Supply Chain Services.
Speaking to CNBC, FedEx president and CEO Raj Subramaniam said Amazon would not be able to replicate the reach of a global logistics network.
He said FedEx operates a “true end-to-end global network,” emphasizing that shipments can move across international routes within a matter of days using its established system.
Subramaniam added that the concept of a logistics “network” is often misinterpreted, stating that a fully integrated global system is different from the structure announced by Amazon.
He also described Amazon’s new offering as a non-asset-based third-party logistics model. While FedEx also provides 3PL services, Subramaniam noted that it represents a smaller portion of its overall business and is supported by long-term customer contracts.
Amazon announced its Supply Chain Services (ASCS) earlier in May, stating that companies including Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters were among its early adopters.
The service includes freight, distribution, fulfilment, and parcel delivery solutions. Its freight network spans ocean, air, ground, and rail transport, supported by large-scale logistics infrastructure including tens of thousands of trailers, intermodal containers, and aircraft.
ASCS also offers options such as time-sensitive shipping, customs support, and end-to-end shipment visibility.
Its distribution and fulfilment services allow businesses to manage inventory internationally, store goods in bulk, and position stock closer to demand for faster delivery. Parcel services provide multi-channel order fulfilment with delivery windows of two to five days and seven-day operations.
Industry observers have noted that Amazon’s expansion into logistics could increase competition for established carriers such as FedEx and UPS. Following the announcement, shares in major logistics firms reportedly declined.
Some analysts have pointed to Amazon’s technological capabilities, including automation and AI-driven optimisation, as potential competitive advantages in the logistics sector.
However, others have raised concerns among businesses about relying on a logistics provider that also competes in retail, as well as the possibility of shipment prioritization issues during peak demand periods.
#SupplyChainNews #Logistics #Ecommerce #BusinessNews #SupplyChain
