Amazon has announced the expansion of its logistics network, introducing a game-changing solution known as Multi-Channel Distribution (MCD). This innovative offering is set to transform the way the company's selling partners manage their supply chain and distribution strategies.
Game-Changing in Logistics Network
According to Amazon's VP Dharmesh Mehta, the supply chain expansion will optimize the inventories in bulk storage for the part of the sellers.
Multi-Channel Distribution empowers sellers to efficiently replenish all their sales and fulfillment channels from a single, unified inventory pool.
According to TechCrunch, this means that sellers can streamline their supply chain management, eliminate complexities, and realize significant cost savings on inbound shipping. The days of managing multiple inventories for various sales channels are over.
One of the standout features of MCD is its ability to leverage Amazon's robust distribution network and cutting-edge technology.
Sellers can now maintain optimal inventory levels across all their sales channels, whether they operate online or maintain a physical retail presence. In doing so, sellers can scale their business while ensuring a seamless customer experience.
Amazon Eyes Wider Rollout of MCD
While Multi-Channel Distribution is currently in a pilot testing phase with select sellers, Amazon has plans to make this invaluable service available to all its sellers in the near future.
With this, sellers across the platform can look forward to harnessing the power of MCD to enhance their competitiveness.
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Amazon Supply Chain Services
This announcement is just one part of Amazon's broader initiative known as "Supply Chain by Amazon." This end-to-end suite of supply chain services offers sellers comprehensive solutions to manage their product journey, from manufacturing to global distribution.
By tapping into Amazon's extensive logistics, warehousing, distribution, fulfillment, and transportation capabilities, sellers can navigate the complexities of global commerce with ease.
Supply Chain Amazon encompasses services that go beyond traditional fulfillment. The Seattle giant will now pick up inventory directly from manufacturing facilities worldwide, handle cross-border shipping, manage customs clearance, and provide efficient ground transportation. The result is a seamless, integrated supply chain that optimizes inventory replenishment for Amazon and sellers' other sales channels.
For domestic transportation into Amazon Warehousing Distribution (AWD) centers, sellers can soon take advantage of Amazon's Partnered Carrier Program (PCP).
This streamlining of transportation promises efficiency gains for sellers, ensuring that inventory management remains smooth, even during peak periods like the holiday season.
Meanwhile, Fulfillment by Amazon (FBA) is poised to offer automatic inventory replenishment.
Leveraging Amazon's machine learning and supply chain optimization capabilities, this feature will move inventory strategically to Amazon fulfillment centers and off-Amazon channels via Multi-Channel Fulfillment (MCF).
Dharmesh Mehta, Amazon's Vice President of Worldwide Selling Partner Services, sums up the vision behind the initiatives.
"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," Mehta said.
Mehta added that the Supply Chain will help sellers optimize how they handle the inventory in bulk storage, per Geekwire. The initiative is here to deliver more efficient and lower costs for the sellers.
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