Amazon is set to launch a fully managed supply chain solution, automating logistics, warehousing, and distribution decisions for sellers. The new feature will be available to U.S. sellers in October and globally by year-end.
Amazon’s Supply Chain Revolution
Amazon is set to offer sellers a fully managed option using its existing Supply Chain by Amazon solution. This feature automates logistics, warehousing, and distribution decision-making, according to a recent blog post. Previously, sellers had to individually select services and manage all product movement decisions. Now, sellers only need to specify the product quantity and desired pickup location.
Streamlining Operations with Automation
Once the seller’s information is processed, Amazon takes over, handling everything from pickup to cross-border transportation, customs, port and warehousing management. The company also optimizes product movement, deciding how much product to move, where, and when. This new, automated option leverages machine learning and predictive analytics to automate the process of identifying or predicting where to move an individual unit or when.
Balancing Automation and Human Judgment
While automation is used to ensure operations are safer and more reliable, humans are still involved in operations like shipping. Amazon strives to balance areas where automation excels with those that require human judgment or creativity. However, the seller retains control over what services they want to automate. Typically, sellers with larger or more complex supply chains opt for more control, while several small- and medium-sized businesses opt for an automated solution to simplify their operations.
Rollout and Benefits
Amazon will roll out the new features to users over time. The solution will be available to U.S. sellers for domestic pickup in October, with a full global rollout slated by the end of the year. Sellers using the end-to-end solution qualify for a 25% reduction in storage fees and a 15% decrease in transportation and processing costs associated with Amazon Warehouse and Distribution services.
