September 24, 2024
US
Since announcing our vision for Supply Chain by Amazon, an automated set of end-to-end supply chain services that provides suppliers with a comprehensive solution for quickly and reliably moving products directly from their manufacturers to customers around the world, we've worked to make this idea a reality to revolutionize the supply chain landscape. Today, I am thrilled to announce that we are making the fully managed, end-to-end Supply Chain by Amazon service available to suppliers. Supply Chain by Amazon radically simplifies operations and optimizes inventory placement, allowing for faster deliveries, increasing sales by an average of 20%.
With Supply Chain by Amazon, suppliers can take advantage of Amazon's advanced logistics, storage, distribution, distribution, distribution, order processing, and transportation infrastructures to move products from factories to customers faster than ever, reducing delivery times and allowing suppliers to save time, effort, and money. Hundreds of thousands of suppliers are already using at least one of these Supply Chain by Amazon services, with multi-service adoption tripling in the first half of 2024. Starting today, suppliers have a fully managed option where Amazon provides forecasts, optimizations, and manages flows between these supply chain services.
Using Supply Chain by Amazon has been transformative for Steve Neufer, co-founder of Juvo+, a company that creates high-quality products to improve people's daily lives. “Having Amazon as a partner for our end-to-end supply chain has been a game changer for our business,” said Neufer. “The speed and reliability of its logistics services have allowed us to keep our products in stock with less working capital, everything by satisfying our customers thanks to ultra-fast deliveries. Customers are responding strongly to the possibility of getting a product the same day or the next day, and we are seeing our sales conversion rate double.”
Amazon is rapidly expanding its global logistics, allowing the movement of products from manufacturing centers, across borders and customs, to destination countries. In August, Amazon moved more than 20,000 containers around the world. In terms of domestic logistics, Amazon allows suppliers to book transport at a cost that is 25% lower than alternatives. Domestic logistics services are now available in 19 countries, and in the United States alone, suppliers have used our domestic logistics services to send 2 billion units of products into our order processing network since this time last year.
Suppliers also need low-cost warehouses to store wholesale products so they can quickly restock them at fulfillment centers and physical stores that fulfill customer orders. Amazon Warehousing and Distribution (AWD) offers this solution at a great value for money, and we are connecting AWD to more processing centers and transport routes to expedite product deliveries to the United States. In 2024 alone, we are quadrupling AWD's capacity in the United States to meet growing supplier demand.
We introduced Multi-Channel Distribution (MCD) as a new feature for AWD, to help suppliers distribute wholesale products across their various sales channels. MCD greatly simplifies the supply chain process for suppliers by allowing them to maintain unified inventory in AWD that can serve all of their channels, rather than having to allocate inventory to each channel from the start — which can lead to excessive costs if it turns out to be too much inventory or to missed sales if that's insufficient. Suppliers are finding that consolidating into a single stock in AWD reduces total inventory requirements by 20% on average — a significant capital saving — and prevents stockouts, which also allows suppliers to increase sales. MCD has also launched the ability to do custom labeling, allowing suppliers to distribute products in bulk to various sales channels, including other marketplaces, wholesalers, distributors, and their own physical stores.
Today, we're launching a fully managed and innovative Amazon supply chain solution. Available to all U.S. suppliers for domestic pickups in October and international pickups by the end of the year. The fully managed supply chain solution from Amazon makes managing the supply chain easier than ever. Suppliers can continue to choose which supply chain services they want to use and manage product movement decisions on their own, or they can let Amazon automate the movement of products through these services with the fully managed option. Suppliers only need to provide product details and pickup locations, and Amazon takes care of the rest, including carrier collection, inventory consolidation, strategic replenishment, and placement in the fulfillment centers closest to customers, as well as ongoing optimization based on demand, inventory levels, and costs. It's as easy as the push of a button, and suppliers benefit from working capital gains, increased sales, and significantly reduced effort.
By using this service, suppliers benefit from AWD's built-in pricing, including a 25% reduction in AWD storage costs and a 15% reduction in AWD freight and processing costs — making it an even better value. Thanks to Amazon's years of supply chain expertise, we can keep products in stock, in the right places, to deliver them to customers at unprecedented delivery speeds. For suppliers, fast delivery is a big advantage for their business, as it increases sales conversion. In fact, suppliers are finding that by using the fully managed option and allowing Amazon to improve delivery speed, their sales increase by an average of 20%.
Ultimately, Supply Chain by Amazon offers suppliers a fast and reliable solution that drives business growth while being simple and freeing them from the complexities of the supply chain, saving them time and money — allowing suppliers to spend more time inventing amazing products and keeping their customers happy.
“Becoming a supply chain expert is not the key to supplier success,” said Neufer. “We succeed by creating better products and meeting customer needs. Amazon is a supply chain expert. Instead of having to manage every aspect of inventory, logistics, and customs, Amazon is a great partner for businesses of all sizes because they help us manage that. It frees up time and energy to focus on improving brands, understanding customer needs, and creating great products; that's how suppliers really succeed.”
Source: amazon
