Dr. Jon Jackson is Associate Professor of Operations Management at the Providence College School of Business. He has created a series of AI exercises for each chapter in our text.
The term “software as a service” (SaaS) has become ubiquitous over the last few decades, covering everything from CRM systems (e.g., Salesforce) to file storage (e.g., Dropbox) and e-commerce platforms (e.g., Shopify). Amazon entered this arena in 2006 with Amazon Web Services (AWS), offering “infrastructure as a service.”
Fast forward to 2026, and Amazon is applying a similar playbook to logistics with its new “supply chain as a service” platform, Amazon Supply Chain Services (ASCS), according to an Amazon press release (May 4, 2026).
ASCS opens Amazon’s vast global logistics network not just to its own marketplace sellers, but to businesses operating across competing marketplaces and in B2B channels. As Peter Larsen, vice president of Amazon Supply Chain Services, puts it, the platform is “available to any business of any shape or size.”
This marks a significant shift. For years, companies have relied on third-party logistics providers (3PLs), with an estimated 94% of Fortune 500 companies using at least one. Now, Amazon is positioning itself as a full-stack alternative, offering freight, warehousing, fulfillment, and last-mile delivery in a single integrated system. In 2025, Amazon’s logistics revenue was estimated at $172 billion, far surpassing competitors like DSV ($37 billion) and DHL Supply Chain ($35 billion), reported by The Wall Street Journal (May 4, 2026).
Early adopters of ASCS include major brands such as Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters.
If AWS transformed how companies build and scale software, ASCS could do the same for physical commerce by reshaping supply chains and the competitive dynamics of global logistics.
Classroom Discussion Questions
1.How does ASCS impact traditional 3PLs (e.g., FedEx, UPS, DHL)? What can they do to differentiate and defend their market share?
2. As a business owner, what concerns would you have about outsourcing your entire logistics operation to Amazon?
3. Could Amazon’s “supply chain as a service” model become as dominant as AWS? What would that mean for competition in retail and logistics?