Amazon Warehouse & Distribution aims to solve supply chain challenges for sellers

Amazon has introduced its new Warehouse & Distribution service which gives sellers the option to store their inventory in Amazon distribution centres, therefore easing supply chain challenges while cutting costs.

Amazon Warehousing & Distribution (AWD) is designed to address critical supply chain issues and helps sellers to grow. The pay-as-you-go service means sellers are free from the process of moving inventory from upstream facilities to Amazon fulfilment centres.

AWD makes the promise of supply-chain-as-a-service a reality, the ecommerce giant said. It is specifically designed to solve inventory management challenges and deliver operational efficiencies.

Amazon added enrollment to the service is easy, and with one click sellers can send their inventory to Amazon distribution centres and reduce storage costs, while eliminating complex pricing schemes and long-term contracts that are common throughout the industry.

Sellers can integrate their upstream inventory storage operations with the Amazon fulfilment network, ensuring they always have the right amount of inventory in stock, in the right places and at the right times.

“As an Amazon seller for over 10 years, we are super excited about the Amazon Warehousing & Distribution service as it’s something that sellers have been seeking for a very long time,” said Harris Chan, senior business manager at AmaMax.

“Automated replenishment and master case handling is the key of the program.”

Sellers using AWD can also consolidate their global inventory, which they can then view and manage on Seller Central, simplifying their operations with one pool of inventory.

Furthermore, Amazon plans to allow sellers to use AWD to send their inventory to any location, including to wholesale customers or brick-and-mortar stores from 2023.

Image Credits:
Amazon

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SECTOR FOCUS – Supply chain issues
Supply chain
24 Aug 2022

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