Amazon recently announced the introduction of its Supply Chain by Amazon initiative, which includes a range of supply chain services designed to help sellers move their products globally. As part of this initiative, Amazon unveiled Multi-Channel Distribution (MCD), a solution that allows sellers to replenish inventory for both online and physical store channels from a single inventory pool.
Key Takeaway
Amazon announces Supply Chain by Amazon, a comprehensive set of supply chain services for sellers. The new Multi-Channel Distribution (MCD) solution allows sellers to replenish inventory for both online and physical store channels from a single inventory pool. This initiative aims to streamline supply chain management and provide cost savings on inbound shipping. Amazon’s Supply Chain by Amazon initiative also includes services for manufacturing, origin services, and automated inventory replenishment.
Streamlining Supply Chain Management
MCD simplifies supply chain management for sellers by providing a centralized inventory pool that can be used to restock various sales channels. This approach not only improves efficiency but also results in cost savings on inbound shipping. Sellers can now leverage Amazon’s extensive distribution network and technology to maintain optimal inventory levels across all their sales channels.
Expansion of Services
The MCD service is currently in a pilot testing program and is expected to become available to all Amazon sellers later this year. Additionally, Amazon is expanding its origin services, allowing for pick-up services at manufacturing facilities worldwide, as part of its Amazon Global Logistics (AGL) offering. This comprehensive solution encompasses origin services, ocean freight shipping, customs clearance, and more, and aims to support sellers throughout the entire product journey.
Innovative Fulfillment Solutions
Supply Chain by Amazon builds upon the success and cost-effectiveness of Fulfillment by Amazon (FBA), which offers fast and reliable pick, pack, and shipping services for sellers. With FBA, Amazon delivers millions of unique products with fast and free shipping. The new supply chain services complement FBA by focusing on the earlier stages of the product journey, starting from manufacturing.
Automating Inventory Replenishment
Amazon’s Supply Chain by Amazon initiative also incorporates advanced technologies, such as machine learning and supply chain optimization. Sellers will benefit from automatic inventory replenishment, which ensures that inventory is efficiently distributed to Amazon fulfillment centers and other sales channels through the Multi-Channel Fulfillment (MCF) program.
