Amazon has recently introduced a full suite of supply chain services under the banner of “Supply Chain by Amazon.” These services are now available to third-party sellers, extending beyond Amazon’s platform.
“Supply Chain by Amazon” encompasses a range of services designed to streamline supply chain logistics. It includes inventory pickup from sellers’ manufacturing facilities, international shipping with customs clearance, ground transportation, bulk inventory storage, automatic inventory replenishment, and final delivery to customers. This initiative allows sellers to leverage Amazon’s expertise in handling complex logistics for both products sold on Amazon’s platform and those sold through other online and physical store channels.
Dharmesh Mehta, Amazon’s Vice President of Worldwide Selling Partner Services, highlighted the opportunity for sellers to simplify their supply chain operations by partnering with Amazon. This offering aims to address the challenges faced by many small business owners who often work with multiple companies to manage the flow of products from manufacturing hubs to distribution centers and, ultimately, to customers.
Piyush Saraogi, Vice President of Worldwide Fulfillment by Amazon, emphasized the integration and collaboration benefits of “Supply Chain by Amazon.” Many small business owners currently struggle with coordinating various logistics partners. This initiative provides a unified solution that bridges these gaps.
Key features of Supply Chain by Amazon include:
- Amazon Global Logistics: This service manages cross-border transportation and will soon offer pickup from sellers’ manufacturing facilities, providing greater convenience for sellers.
- Amazon Warehousing and Distribution: This long-term inventory storage service is now open to all sellers, allowing them to store their products efficiently.
- Multi-Channel Distribution: This service facilitates the movement of products in bulk from Amazon Warehousing and Distribution to various seller channels, whether online or physical. While it’s currently in pilot testing with select sellers, it will be available to all sellers later this year.
- Automatic Inventory Replenishment: Leveraging machine learning, Amazon will optimize the placement of goods in fulfillment centers based on expected demand.
Pricing for these services is determined based on factors such as the type of products being shipped and the seller’s distribution channels. Sellers have the flexibility to choose services a la carte or opt for the complete offering to streamline their end-to-end supply chain operations.
In summary, Amazon’s “Supply Chain by Amazon” is designed to simplify supply chain logistics for third-party sellers, providing a comprehensive solution to manage the flow of products from manufacturers to customers across various sales channels.
