Amazon Warehousing and Distribution

AWD Integration

To begin with, Amazon should be the seed.


For this, we have added a setting on the marketplace setting page. Once the user enables this it will start importing inventory and shipments.

 

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How to: create a shipment for AWD using SKUPREME:

  1. Select AWD storage provider as destination (If the user doesn’t have any AWD location yet then our system generates the initial storage provider to create the first shipment with AWD storage provider name “Amazon AWD”)
  2. After the shipment is created the user can enter the ship date and tracking information to submit to Amazon.

Take a look at the video below: 

https://drive.google.com/file/d/1XxUtDfhe0jdo2MfxOdmbQk6lN7Ejj_9r/view?usp=drive_link

 

Monitoring your shipments to AWD:

1.  We can monitor the shipments to AWD from the Shipments section with different shipping statuses: TBD - 

 Viewing your AWD inventory:

1.  User can view their inventory on the storage provider details page.

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   Viewing your automated AWD replenishments to FBA:


1.  User can view their automated AWD replenishments to FBA on the shipment page or SCM dashboard.

You should Filter By Origin and select the AWD storage provider name: 

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How to track AWD shipments” & “tracking AWD shipments automatically sent to FBA:

-> Once the AWD setting is enabled we will able to sync all AWD shipments and the user able to track them in the shipment dashboard and page.

Why AWD? 

 

Amazon Warehousing & Distribution (AWD) program offers a couple of key benefits to the sellers:
  • It offers a competitive storage cost vs. 3PL providers and a drastically lower storage cost vs. conventional FBA distribution centers (AWD offering $0.42 / cb ft per month vs. FBA's $0.87 / cb ft per month).
  • It enables sellers to store goods for the long term and automatically replenish inventory to FBA distribution centers without a need to create regular shipments (which is the current process). AWD charges $1 / cb ft for FBA replenishment but comparatively, it is cheaper than the costs incurred from sending multiple shipments from 3PL / manufacturer (considering not only freight but also processing/handling costs).
  • Storing goods at AWD will prevent sellers from being charged for low stock surcharge by Amazon - even if the stocks drop below the required level of inventory - since through AWD, Amazon will manage the replenishment automatically.
  • Through a logistic partnership program, Amazon AWD will provide better freight costs for cross-border shipments and sea freight.
Based on the above key aspects of AWD's offering, the following are the potential benefits we can expect:
  • Cost saving and cost avoidance: although this is a bit new and extremely subjective (depending on the logistical cost drivers for each business/seller), there is an apparent cost-saving or avoidance on offer by using the AWD storage facility. On average, 3PL storage and especially FBA's storage is extremely high vs. AWD's - hence it is better to hold long-term (2-6 months or more) stocks at AWD - just based on storage costs.
  • Additionally, there is a potential opportunity to avoid the surcharge costs that Amazon will be charging if the stock level drops to low / less than required levels. This cost can range between $0.5 to multiple $s per unit (depending on product classification).
  • There is also a potential benefit of skipping the costs of handling/processing at 3PL if a manufacturer to directly AWD supply chain is established.
  • Potentially lower freight costs between manufacture, 3pl & AWD under the logistic partnership.
  • Simplification of the supply chain: with AWD - sellers can simplify their SC by storing products at one location instead of shipping to multiple locations and paying multifold. Also, AWD will minimize the need for multiple/recurring shipments to FBA as under AWD - the replenishment will happen automatically - without a need for intervention.
  • Obviously - the above benefits will directly impact the performance of the seller by the following means:
  • Improved product availability and reduced complexity of multiple replenishment/needs for 3PL.
  • Improved bottom-line profitability for the business through cost savings/avoidance.
There is initial information available on the AWD program via this link - that can help understand the benefits: https://sellercentral.amazon.com/asdn/aboutWe are also working to create an initial model that can help in calculating potential benefits on storage and handling costs between a 3PL, FBA, and AWD.
 

PS If any manual intervention is needed you can contact us via chat to initiate the process:

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