The capabilities of Supply Chain by Amazon are available immediately, with further enhancements expected in the coming months and a long-term commitment to continuous improvement. Credit: Shutterstock

“Supply Chain by Amazon,” a fully automated suite of supply chain services is designed to streamline the process of moving products from manufacturing facilities to customers worldwide.

Sellers can leverage the retailer’s advanced logistics, warehousing, distribution, fulfilment, and transportation capabilities to optimise inventory management, expedite shipping, lower costs, and enhance overall efficiency.

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Key benefits of the service include:

  1. Amazon Global Logistics (AGL) Expansion: Starting in October, the retailer is extending its origin services closer to sellers’ factories, simplifying ocean freight shipping, customs clearance, and more. All-inclusive pricing ensures transparency and discounts of up to 25% on cross-border transportation to Amazon Warehousing Distribution (AWD).
  2. Streamlined Domestic Inbound Transportation: The Partnered Carrier Programme (PCP) will provide reliable and cost-effective domestic transportation into AWD centres, and Amazon claims it can reduce costs by up to 25% compared to alternatives.
  3. Expanded AWD Offering: AWD is now accessible to all sellers, offering lower bulk storage costs. Peak pricing for AWD will be eliminated in the fourth quarter, and its rates claim to be up to 80% lower than FBA storage fees.
  4. Multi-Channel Distribution (MCD): Amazon introduced MCD to help sellers manage their inventory across various sales channels efficiently. This capability aims to simplify supply chain management and reduce costs.
  5. Automatic inventory replenishment with Fulfilment by Amazon (FBA): Sellers will have the opportunity to leverage Amazon’s advanced machine learning and supply chain optimisation capabilities to automatically replenish inventory into the optimal Amazon fulfilment centres.

With the Supply Chain solution, the retailer wants sellers to focus more on product development, customer satisfaction, and business growth whilst the company handles the logistics, enhances delivery speed, and reduces operational costs.

With Supply Chain by Amazon, the company aims to empower independent sellers by simplifying their supply chain operations, ultimately supporting their growth and success in the ever-competitive marketplace.

In August, Amazon streamlined its private label clothing brands and analysts suggested it had not been able to use its power or knowledge to outcompete other fashion brands.

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