Amazon has launched Supply Chain by Amazon, a comprehensive set of end-to-end, fully automated supply chain services.
This game-changing offering, announced at the annual seller conference, Accelerate, is designed to empower sellers by streamlining their supply chain operations, allowing them to move products seamlessly from manufacturers to customers worldwide with unprecedented speed, reliability, and cost-efficiency.
Supply Chain by Amazon takes advantage of Amazon’s cutting-edge logistics, fulfillment, and transportation capabilities to provide an integrated solution. It encompasses a range of services, including inventory pickup from global manufacturing facilities, cross-border shipping, customs clearance, ground transportation, bulk inventory storage, and efficient replenishment management across Amazon and other sales channels. Sellers can now focus on product development and business growth while Amazon takes care of the intricacies of the supply chain, leading to cost savings and faster delivery times.
Key Benefits of “Supply Chain by Amazon” include:
Automatic Cross-Border Discounts: Amazon is offering discounts of up to 25 percent on cross-border transportation for all shipments bound for Amazon Warehousing and Distribution (AWD), significantly reducing costs for participating sellers.
Streamlined Domestic Inbound Transportation: Later this year, sellers can leverage the Partnered Carrier Program (PCP) to streamline domestic transportation to AWD centers. This program offers reliable and speedy transit times with trusted carriers at up to 25 percent lower costs compared to alternatives.
Expanded AWD Offering: AWD is now open to all selling partners, allowing them to store inventory in bulk with discounts of up to 80 percent compared to Fulfillment by Amazon (FBA) storage fees. No peak pricing during Q4 ensures efficient inventory management even during peak seasons.
Multi-Channel Distribution (MCD): MCD facilitates the movement of sellers’ products in bulk from AWD to any sales channel, including online stores and physical locations. This allows sellers to replenish inventory across all their sales and fulfillment channels from a single inventory pool, not limited to Amazon. MCD is currently in pilot with select sellers and will be available to all later this year.
Automatic Inventory Replenishment with FBA: Amazon will use advanced machine learning and supply chain optimization to automatically replenish inventory in optimal Amazon fulfillment centers to meet expected customer demand. This enables faster FBA speeds and an average 15 percent increase in unit sales, benefiting off-Amazon channels through Multi-Channel Fulfillment (MCF).
Dharmesh Mehta, Amazon’s Vice President of WW Selling Partner Services, emphasized the company’s commitment to simplifying global logistics for sellers.
“Supply Chain by Amazon” promises to transform the way sellers manage their supply chain logistics, enhancing cost-efficiency, reliability, and overall operational excellence. Amazon aims to empower sellers to focus on innovation and growth while streamlining their supply chain processes, both within and beyond the Amazon ecosystem.
