Amazon is expanding its advanced logistical know-how outside of its platform in a ground-breaking effort. Whether or whether they sell on Amazon, businesses may optimize their supply chain operations using the recently launched “Supply Chain by Amazon” service.
What It Does
With this service, Amazon assumes control for the worldwide collection, transportation, and delivery of goods from manufacturing facilities. This involves controlling ground transportation, bulk storage, customs clearance, and inventory replenishment. In essence, it implies that firms can concentrate all of their efforts on sales and marketing while leaving the complex logistics to Amazon.
Multichannel Distribution (MCD)
Additionally, Amazon is introducing Multi-Channel Distribution (MCD), which enables merchants to ship goods in bulk from Amazon’s warehouses to locations other than Amazon. By enabling retailers to refill stock across all of their sales channels from a single inventory pool, this streamlines supply chain management. It will first be an experimental program but is anticipated to be made available to all vendors later this year.
The Greater Picture
In light of the massive antitrust litigation that Amazon is facing, these additional measures have been announced. According to reports, the Federal Trade Commission (FTC) is getting ready to take legal action against the corporation, perhaps targeting several facets of its operations, including Fulfillment by Amazon (FBA).
Amazon may be seeking to allay some of the FTC’s worries about its massive fulfillment operations by enabling merchants to send goods to third-party warehouses. It’s important to note, too, that Amazon has come under fire for asking merchants for extra money to transport their own goods.
Amazon is committed to improving logistics for companies of all sizes, as seen by its initiatives to speed shipping, broaden services, and use machine learning technology for automatic inventory restocking.
As a result, companies now have a strong ally in Amazon’s Supply Chain by Amazon and Multi-Channel Distribution services, which represent a big step toward revolutionizing logistics.
