FedEx CEO Raj Subramaniam downplayed the competitive threat posed by Amazon's recently announced supply chain service in an interview on Tuesday.

Subramaniam stated, "What (Amazon) announced last week is completely different from what FedEx actually operates. FedEx is a true end-to-end global network."

On May 4th, Amazon unveiled a new supply chain service—Amazon Supply Chain Services—which will allow sellers not on the Amazon platform to use its full suite of shipping, delivery, and logistics services. This move sparked concerns that Amazon might replicate its success in logistics, similar to its model with Amazon Web Services (AWS) in cloud computing, posing a greater competitive threat to traditional logistics firms. Following the announcement, FedEx's stock price fell by as much as 9%, though it has since recovered roughly half of that decline. Its competitor UPS saw its stock plunge 10.5% on May 4th and has since rebounded by about 2%.

However, Subramaniam argued that comparing Amazon's supply chain service to FedEx's core business overlooks a crucial distinction.

"A real network means you can pick up from anywhere in the world and deliver to anywhere in the world within a few days," he said. "To do that, you need a system like we have here and a network that spans the globe."

Subramaniam noted, "That is not at all what Amazon announced." He views Amazon's announcement as more akin to a third-party logistics service—a sector FedEx is already involved in, but which constitutes only a small portion of the company's business.

He stated that FedEx's third-party logistics business is "about $2 billion in size," adding, "but it's not our largest business segment." According to FactSet projections, FedEx's revenue for the fiscal year ending in May is expected to exceed $93 billion.

Barclays analysts expressed a similar view in a client note on Monday, suggesting Amazon's move is "more noise than risk." They pointed out that the announcement largely repackages logistics services Amazon has offered for years, rather than representing a fundamentally new competitive threat.

Subramaniam also emphasized that Amazon remains a significant customer for FedEx after the two companies restored their partnership in recent years.

"They are a very valuable customer," he said. "The partnership between us is a win-win."