Amazon Unveils ‘Supply Chain by Amazon, Game-Changing Retail Restocking Initiative

Amazon plans to expand its logistics network to assist sellers in moving products more efficiently. This new feature, called Multi-Channel Distribution (MCD), enables sellers to restock not just to customers’ doorsteps but also to physical stores and warehouses. It makes the supply chain management smooth and saves on shipping costs. MCD also allows sellers to use Amazon’s distribution network to keep inventory levels right for all their sales channels.

Amazon is checking Multi-Channel Distribution (MCD) with a limited group of sellers, with aims to roll it out to all sellers later this year. MCD is a component of Amazon’s comprehensive Supply Chain program, providing end-to-end supply chain services. This initiative allows sellers to move products globally using Amazon’s logistics, warehousing, distribution, fulfillment, and transportation capabilities. It builds upon Fulfillment by Amazon (FBA), introduced in 2006, which gives fast and cost-effective product handling and shipping for sellers. Amazon now delivers approximately 300 million unique products with fast, free shipping to customers with FBA.

The company is enhancing its supply chain services to encompass manufacturing, allowing inventory collection from global manufacturing sites, cross-border shipping, customs clearance, ground transportation, and bulk storage. They are also improving their origin services with ocean product pick-up at manufacturing hubs through Amazon Global Logistics. Sellers will have the ability to make domestic transportation smooth to Amazon Warehousing Distribution centers through the Partnered Carrier Program (PCP). Amazon aims to reduce peak pricing for AWD in the fourth quarter, helping sellers manage inventory, even during the busy holiday.

FBA is launching automatic inventory replenishment using Amazon’s machine learning and supply chain expertise. This feature optimizes inventory distribution to Amazon fulfillment centers and facilitates sending inventory to non-Amazon channels via Multi-Channel Fulfillment (MCF). Dharmesh Mehta, Amazon vice president of Worldwide Selling Partner Services, said in a statement:

“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.”