FedEx CEO brushes off Amazon's new logistics service that recently sent shares tumbling

FedEx CEO Raj Subramaniam on Tuesday downplayed the competitive threat from Amazon's recent supply chain services announcement . "Last week's announcement versus what FedEx operates is completely different," Subramaniam told Jim Cramer on CNBC's " Mad Money ." "FedEx is a true end-to-end global network." On May 4, Amazon unveiled a new supply chain offering — Amazon Supply Chain Services — that will allow companies outside of its marketplace sellers to use its full suite of shipping, distribution, and fulfillment capabilities. The announcement sparked concerns that Amazon could replicate in logistics what it did in cloud computing with Amazon Web Services, making it a much larger competitive threat to traditional shipping companies . Shares of FedEx tumbled 9% following the news, though the stock has since recovered roughly half of those losses. Rival United Parcel Service , meanwhile, tumbled 10.5% on May 4. It's climbed a more modest 2% since then. However, Subramaniam said comparing Amazon Supply Chain Services to FedEx's core business misses a key distinction. "The true network is something you can pick up in any one part of the world and get it to any other part of the world in a couple of days," he said. …