Amazon has declared multiple big at its annual acceleration conference for vendors on Wednesday – including new AI equipment that can significantly reduce their manual workload.
Nevertheless, the biggest applause is not for artificial intelligence, but for an old style of logistics: the promise to finish “Comingling”, the inventory practice behind the screen that has been criticized for more than a decade from brands and vendors.
For most people, this term can encourage the meaning of sharing. However, in the world of Amazon, Comingling means pooling the same items from different sellers under a single manufacturer barcode – then any unit of the customer, then regardless of who provided it.
The benefits include speeding up distribution, using the warehouse space more efficiently and saving money and efforts for sellers. However, downside includes the risk of mixing pure products with dangerous people from duplicate, damaged, expired or low vendors.
Over the years, Comingling has caused some high-profile from brands concerned about the quality of the product and customer beliefs.
- Johnson and Johnson temporarily Drawn Many customer products from Amazon in the 21st are due to concern over the expiry or damaged material provided by third -party vendors.
- Kitchenware brand tovolo reveals how duplicates can use the Command Inventory system, when it slows down the shipments on Amazon, the knuckles on the search results in search results Report By Wall Street Journal in 2014.
- German knife maker Washtf and audio company Bose also limit perfection through Amazon to prevent their products from being mixed with unauthorized or imitating products.
To avoid coming, sellers have long been an alternative to applying a unique, seller-specific Amazon barcode-the product is known as FNSKU (Completion Network Stock Kipping Unit). This confirms that their list has been tracked and transmitted separately.
However as “re -cute” it is known that it is expensive and time -consuming solution. Sellers had to print the FNSKU labels and have to be applied to all their items before shipping on Amazon, or Amazon had to pay an per-item fee to do this for them. Amazon assumes that brand owners have spent 600 million last year Million alone to avoid their products.
Dharesh Mehta, Vice President of Amazon’s Sales Partner Services, said in an interview that he wanted to end for many years.
The decision-run supply chain was an expense-beifet analysis. Over the years, overall expenditure sales and salesmen are extended sales to increase the sales of the shipment’s speed, other vendors exceeded the costs spent on sticking to opt out their products.
That balance has now moved. Mehta explained that a few big changes were pressed on the scales.
- Amazon’s logistic network has become more effective in setting up inventory to customers, reduces the need for pulled inventory to increase delivery.
- More vendors now own brands, which come out of comparison to the quality of the product.
- Amazon systems can now track separate units throughout the network. This means that Amazon can find and root a seller’s specific product without the need to mix with the Inventory from another.
So with the original benefits no longer exceeds the downside, no more meaning. And with it, it will soon become a matter of the past.
NadaThe director of the supply chain by Amazon, on Wednesday morning, announced on the stage that its supply would be performed throughout the discipline later this year.
The meaning of the change is when customers buy from a seller, they will get a product that provides a specific seller and any return will come from the same list.
For brands, it eliminates the expensive functionality of re -stickering and provides new flexibility to manage the single pool of Inventory across multiple sales channels.
As Report by Modernartell every dayIndustrial analysts are already calling Amazon one of the most important steps taken over the years to help the brands protect its platform.