Amazon Opens Its Logistics Network, Creating New Dynamics for PHCP-PVF Distribution

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For years, Amazon has steadily moved beyond retail into logistics, fulfillment and last-mile delivery, reshaping expectations around speed, availability and service across industries. Its latest move, however, marks a notable escalation: opening its logistics network to businesses regardless of whether they sell on Amazon’s marketplace.

In practical terms, Amazon is now offering its infrastructure as a service. Through Amazon Supply Chain Services (ASCS), companies can access freight, warehousing, fulfillment and delivery through a single, integrated network. Amazon is now monetizing its logistics capabilities in a way that could directly impact how distribution itself is structured.
 

This move builds on an infrastructure that already operates at extraordinary scale. Amazon’s logistics network spans roughly 1,200 facilities globally, including hundreds of fulfillment and sortation centers across the U.S. It processes an estimated 20 to 25 million packages per day and now handles nearly 28% of all U.S. parcel volume, making it the largest delivery provider in the country by volume. What was once a competitive advantage built to support its own operations is now being positioned as a service that others can plug into.
 

“Amazon is bringing the infrastructure, intelligence and scale of its supply chain services — proven over decades — to businesses everywhere, much like Amazon Web Services did for cloud computing,” ASCS Vice President Peter Larsen said in a news release. “Supply chain wasn’t just a function at Amazon — it was core to providing an exceptional shopping experience. Our differentiator. The reason we could offer fast, dependable delivery that nobody else could. And with the launch of ASCS, we’re confident we can give any other business access to the same cost efficiency, reliability, and speed that we’ve built for Amazon customers.”
 

For years, in order to stay competitive, PHCP-PVF distributors have built their value around logistics execution. Inventory positioned close to the customer, reliable next-day or same-day delivery, and the ability to respond quickly when a contractor is up against a deadline have defined the channel. Amazon’s move introduces a different model where a national-scale logistics network can be accessed without the capital investment typically required to build and maintain it.
 

The immediate implication is not that Amazon becomes a direct competitor in PHCP-PVF overnight, but rather, this move lowers the barrier to entry for others. Manufacturers, private brands or emerging competitors can now leverage a logistics infrastructure that rivals the largest networks in the country. In effect, smaller players can begin to operate with capabilities that previously required years of investment and operational expertise.
 

That dynamic has potential to continue to rise customer expectations. As more industries adopt outsourced logistics models, the baseline for delivery speed, visibility and cost efficiency continues to rise. Even if Amazon’s network is not widely adopted in PHCP-PVF in the near term, the expectations it sets elsewhere will influence how customers evaluate service. Contractors and commercial customers are not comparing experiences in isolation, they are comparing them across every supplier they work with.
 

At the same time, it’s important to distinguish between real impact and initial reaction. Amazon’s network is built for scale and standardization, excelling at moving high volumes of relatively predictable product through a tightly optimized system. Throughout the PHCP-PVF channel, orders are often tied to specific jobs, timelines shift in real time, and the ability to solve problems on the fly can matter as much as speed. Technical expertise, product knowledge, credit relationships and on-the-ground service remain central to how distributors create value.
 

This news from ASCS is an operational development, not a relationship replacement. In response, distributors should evaluate how logistics is positioned within the business; perhaps as a strategic asset that can be measured, refined and, where appropriate, reimagined.
 

Do you have a clear understanding of delivery performance from the customer’s perspective? Are you measuring speed, accuracy and reliability in a way that reflects how your customers experience your service? As expectations evolve, the gap between internal metrics and customer perception becomes more important.
 

It also requires a clear focus on where strengths truly lie. Distributors continue to differentiate through technical support, application knowledge and the ability to navigate complex projects. Those are not easily replicated by a third-party logistics network. Doubling down on those capabilities while ensuring the operational side keeps pace will be critical.
 

There is also a more nuanced consideration that may emerge over time. While it may not be front of mind today, some distributors could eventually explore outsourced logistics for specific use cases like non-core SKUs, e-commerce fulfillment or overflow capacity during peak periods. That does not replace the core business, but it does reflect a broader shift toward more flexible, modular distribution models.
 

Across industries, logistics is becoming more accessible, more scalable and more commoditized. Relationships, expertise and service continue to define the channel. But the environment around those fundamentals is evolving. Treating logistics as a static capability will create pressure over time. Treating it as a strategic lever that can adapt alongside the business will position distributors to stay competitive in a changing landscape.

By Natalie Forster