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Amazon is aiming to do for logistics what AWS did for cloud computing, with a new business called Amazon Supply Chain Services, the WSJ Logistics Report’s Liz Young writes.
Just as the e-commerce giant expanded Amazon Web Services from an internal tech-managing effort into the largest service of its kind, Amazon hopes to do the same with its sprawling global supply chain. It is opening up its network to more business customers—including those that don’t sell on its retail marketplace.
Amazon over nearly three decades has assembled a globe-spanning supply chain with warehouses, planes, trucks and delivery vehicles, but the services to date have largely been offered piecemeal. Amazon is today announcing the launch of its effort to tie them all together, in effect officially making it a third-party logistics provider, or 3PL, to rival the likes of DSV, DHL Group and others.
This positions Amazon to take a bigger bite out of a global 3PL market estimated at more than $1.3 trillion, according to Armstrong & Associates.
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