Amazon has announced a significant expansion of its Supply Chain by Amazon (SCB) suite, effectively offering its world-class logistics technology to all businesses, regardless of whether they sell on Amazon.com.
This move marks a major shift in the company’s strategy. For years, Amazon’s advanced logistics were primarily reserved for those using Fulfillment by Amazon (FBA). Now, Amazon is evolving into a comprehensive logistics provider that competes directly with traditional freight and shipping giants.
The core appeal of this expanded service is automation. Amazon is providing an end-to-end solution that handles the movement of products from the manufacturing floor directly to the customer’s doorstep. This includes Amazon Global Logistics, which manages cross-border transportation, and Amazon Warehousing and Distribution (AWD), which provides long-term storage for inventory before it is needed for fulfillment.
One of the most impressive features of the new update is the automated replenishment system. By using advanced machine learning and data analysis, Amazon can predict when a business is running low on stock. It then automatically moves inventory from long-term storage into the Prime fulfillment centers that are closest to where customers are actually buying.
Dharmesh Mehta, Amazon’s Vice President of Worldwide Selling Partner Services, emphasized that the goal is to take the complexity out of the supply chain so that business owners can focus on what they do best: inventing and selling great products.
Perhaps the most notable change is that these services are now “off-platform.” A business can use Amazon to ship products sold on their own independent website or through other third-party retailers. This flexibility is a game-changer for brands that want to maintain a multi-channel presence without managing four different shipping partners.
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