US' Amazon unveils cost-reducing automated supply chain for sellers

Source:China Sport ShowRelease time:28-Sep-2023Clicks:

Article From：fibre2fashion

US’ Amazon has launched a fully automated supply chain solution, Supply Chain by Amazon, offering end-to-end services to sellers globally, aiming to facilitate swift and reliable movement of products from manufacturing sites to customers. The initiative leverages Amazon’s advanced logistics, including warehousing, distribution, and transportation facilities, assisting sellers in reducing costs while enhancing product availability and delivery reliability.

Sellers can now focus more on product development and customer satisfaction as Amazon takes charge of picking up inventory from manufacturing locations worldwide, handling customs, ground transportation, and bulk storage. Moreover, the service manages replenishment across various sales avenues, delivering products directly to consumers, Amazon said in a press release.

Amazon Global Logistics (AGL) and PCP provide a series of benefits including ocean freight shipping, customs clearance, and origin services located closer to manufacturing hubs, which will be introduced in October.

Furthermore, Amazon is set to launch a new feature, MCD, to assist sellers in moving products in bulk from Amazon Warehousing Distribution (AWD) to any sales channel, enabling them to maintain a single inventory pool. This is designed to streamline supply chain management and reduce costs through inbound shipping consolidation. The system, backed by Amazon’s high-tech distribution network, is currently under pilot testing and is expected to be available to all sellers later this year.

In a bid to further support sellers, Amazon is eradicating peak pricing for AWD in the fourth quarter and offering up to 80 per cent lower rates compared to Fulfilment by Amazon (FBA) storage fees. The firm is also employing machine learning to optimise supply chain management, aiming to increase FBA unit sales by an average of 15 per cent.