Amazon has announced a new feature that allows third-party sellers to choose their preferred trucking carrier when sending less-than-truckload (LTL) and truckload shipments to the company’s U.S. fulfillment centers. This move is part of Amazon’s ongoing efforts to streamline its supply chain operations and improve overall inbound fulfillment efficiency.
How It Works
Sellers can select from a list of Amazon-partnered carriers through the “Send to Amazon shipment creation workflow”. This feature enables Fulfillment by Amazon and Multi-Channel Fulfillment sellers to replenish inventory and create shipments in one place. Amazon will then display the estimated pickup dates and associated transportation costs for each carrier. If sellers choose not to select a new carrier, the system will default to the lowest-cost carrier provided by Amazon.
Requirements and Benefits
To utilize Amazon-partnered LTL and TL carriers, sellers must have a forklift and a dock for placing pallets on a truck, and the ability to accommodate a 53-foot trailer at the pickup location. These partnered carriers offer discounted rates to eligible sellers, providing a cost-effective solution for their shipping needs.
Data-Driven Decision Making
Amazon is also providing sellers with carrier performance data to aid in their decision-making process. This data includes metrics such as on-time delivery rates and no-show percentages, updated weekly. This transparency allows sellers to identify carriers that meet Amazon’s operational standards and make informed decisions about their logistics partners.
The Bigger Picture
This move is part of Amazon’s broader strategy to improve inbound fulfillment efficiency and speed. By giving sellers more flexibility and knowledge about carrier options, Amazon aims to better align inventory with customer demand in specific regions, enhancing the overall efficiency of its supply chain operations.
