Amazon Launches Supply Chain Software Service

Mega-retailer launched a cloud-based application for logistics companies that it says can help users to improve supply chain visibility, mitigate supply chain risks, and lower costs.

The “AWS Supply Chain” product is a unit of the firm’s Amazon Web Services arm, which—along with competitors like Microsoft Azure and Google Cloud—rents computer server space to companies that operate cloud-based software products.

Running software in the cloud has gained popularity in recent years in contrast to running each application “on premises” at the location where users work. Supporters say the cloud approach enables better cyber security, more frequent updates, and access to larger data storage and processing tools than most users could provide from their own private IT departments.

Amazon’s launch of its cloud application, AWS Supply Chain, adds Amazon to a growing list of software suppliers, such as Manhattan Associates and Blue Yonder, that help merchants juggle increasingly complex cargo flows and inventory demands. Microsoft Corp.

Companies are relying more on sophisticated supply-chain software as a growing share of sales shifts away from sending goods in bulk to retailers and moves more toward direct-to-consumer online sales that require better balancing and positioning of stock.

Growth + Change = Opportunity!