Amazon has announced an end-to-end, fully automated set of supply chain services that will provide sellers with a complete solution to move products quickly and reliably direct from their manufacturers to customers around the world. Called Supply Chain by Amazon, the system enables sellers to benefit from Amazon’s advanced logistics, fulfillment and transportation capabilities to keep products in stock, ship faster and more reliably, and lower costs.
With Supply Chain by Amazon, Amazon will pick up inventory from manufacturing facilities around the world, ship it across borders, handle customs clearance and ground transportation, store inventory in bulk, manage replenishment across Amazon and other sales channels, and deliver direct to customers. Sellers will be able to focus on their business while Amazon handles the logistics.
Key benefits include:
Automatic cross-border discounts for Amazon Global Logistics (AGL): Amazon’s new prices now reflect discounts up to 25% on all cross-border transportation that is bound for Amazon Warehousing and Distribution(AWD).
Streamlined domestic inbound transportation to AWD with Partnered Carrier Program (PCP): In addition to AGL for cross-border transportation, later this year sellers can use PCP to streamline domestic transportation into AWD centers.
An expanded AWD offering with reduced prices: AWD is now open to all selling partners, giving sellers the ability to store in bulk at discounts of up to 80% compared with Fulfillment by Amazon (FBA) storage fees.
A new multi-channel distribution (MCD) capability: MCD moves sellers’ products in bulk from AWD to any sales channel, enabling selling partners to replenish across all their sales and fulfillment channels, not just on Amazon, from a single inventory pool.
Automatic inventory replenishment with FBA: in addition to the cost savings through AWD, Amazon will now use its advanced machine learning and supply chain optimization capabilities to automatically replenish inventory into the optimal Amazon fulfillment centers to support expected customer demand, allowing sellers to benefit from even faster speeds from FBA and deliver customer orders for off-Amazon channels through multi-channel fulfillment (MCF).
“Our vision has always been to make it as easy as possible for sellers to serve customers around the world, and providing our selling partners with a simple, fast, cost-effective solution to a challenge that has become increasingly unpredictable and complex is an important investment in sellers’ success,” said Dharmesh Mehta, Amazon vice president of WW Selling Partner Services.
“With Supply Chain by Amazon, Amazon will pick up sellers’ inventory direct from their factories and manage the supply chain logistics through delivery to customers’ doorsteps. Sellers will be able to offload even more of the complexity of their supply chain logistics to Amazon.”