Amazon Shakes Logistics Industry with Supply Chain Services Expansion
Shares of UPS, FedEx, and GXO Logistics plummeted on Monday after Amazon announced its Supply Chain Services (SCS) would be opened to businesses of all sizes. The move allows companies across multiple industries, including healthcare, automotive, manufacturing, and retail, to leverage Amazon's logistics network for their needs.
Procter & Gamble, 3M, Land's End, and American Eagle Outfitters are among the major companies that have already signed up for ASCS. Procter & Gamble is utilizing ASCS to transport raw materials to its production facilities and then move the finished goods across its distribution network.
The announcement sent shockwaves through the logistics industry, with shares of UPS falling over 10%, FedEx dropping around 9%, and GXO Logistics plummeting over 13%. Amazon's stock, however, rose about 1% in Monday's midday trade.