Amazon Launches Supply Chain Management Service - Modern Distribution Management

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Amazon Launches Supply Chain Management Service

Amazon said the service will help sellers keep products in stock, ship faster and more reliably and significantly lower costs.
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Amazon announced Sept. 12 that it will expand its logistics network, enabling its selling partners to move bulk products from Amazon Warehousing Distribution’s low-cost storage facilities to any distribution channel — including physical stores and warehouses, instead of just directly to consumers.

Using Multi-Channel Distribution (MCD), Amazon said that sellers will be able to replenish all their sales and fulfillment channels from one inventory pool, simplifying supply chain management and reducing inbound shipping costs. Additionally, Amazon’s distribution network and technology enable sellers to maintain inventory levels across all sales channels, including online and physical store locations, in order to grow their business, the company said.

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“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 directly to customers,” Amazon said in a statement. “Sellers can now focus on building great products for their customers and growing their business, while Amazon handles the logistics, reduces costs, and improves delivery speed.”

The MCD program is currently in a pilot program with a small group of Amazon sellers, but it is expected to be rolled out to all Amazon sellers by the end of this year, the company said. Amazon said other key features of the new supply chain service include:

  • Automatic cross-border discounts for Amazon Global Logistics.
  • Streamlined domestic inbound transportation to AWD with Partnered Carrier Program (PCP).
  • An expanded AWD offering with reduced prices.
  • A new Multi-Channel Distribution (MCD) capability.
  • Automatic inventory replenishment with FBA.

“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 directly from their factory, 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, both for the products they sell in Amazon’s store and through other sales channels including online and physical store locations. We are excited to help sellers, both on and off Amazon, save more money, drive more business growth, and have more time to continue inventing amazing products for customers.”

Read more about the announcement here.

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