Amazon Omnichannel Supply Chain Management

  • September 20, 2023
  • William Payne

Amazon has launched an end-to-end fully automated set of supply chain services across all sales channels with global coverage. Supply Chain by Amazon is designed to provide sellers with Amazon’s logistics, fulfilment, and transportation capabilities to keep products in stock, ship faster and more reliably, and at significantly 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 directly to customers.

The new service provides automatic cross-border discounts for Amazon Global Logistics (AGL). The company’s new prices reflect discounts up to 25% on all cross-border transportation that is bound for Amazon Warehousing and Distribution (AWD). AWD is Amazon’s low-cost storage service that provides sellers the ability to store their inventory in Amazon distribution centres and distribute products in bulk.

It also provides streamlined domestic inbound transportation to AWD with the Partnered Carrier Programme (PCP). In addition to AGL for cross-border transportation, later this year sellers can use PCP to streamline domestic transportation into AWD centres.

A new Multi-Channel Distribution (MCD) capability will move sellers’ products in bulk from AWD to any sales channel (including online stores and physical store locations), allowing selling partners to replenish across all their sales and fulfilment channels, not just on Amazon, from a single inventory pool. MCD is currently in pilot with an initial set of sellers and is expected to be available to all sellers later this year.

The company is also offering automatic inventory replenishment with FBA: In addition to the cost savings through AWD, Amazon will now use its machine learning and supply chain optimisation capabilities to automatically replenish inventory into Amazon fulfilment centres to support expected customer demand.

“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.”