How Amazon Turns Volatility into Procurement Resilience

Supply chains around the world are becoming more automated to maintain efficiency and meet demand.

As volatility strikes and consumer interest grows, automation has proven itself the tool to build supply chain resilience and efficiency.

At the forefront of this is Supply Chain by Amazon, an end-to-end, fully automated set of supply chain services introduced in 2023.

Since its beginnings in 1994, Amazon has helped optimise and simplify the fulfilment needs of selling partners and consumers.

Taking this further, the company introduced Supply Chain by Amazon to provide sellers with a quick and reliable solution for moving products from point A to point B.

Amazon logistic network capabilities

Through this scheme, sellers on Amazon rely on the company's advanced logistics, warehousing, distribution, fulfilment and transportation capabilities.

Due to its global network and wealth of resources, sellers can maintain stock levels. They can also ship faster and more reliably at much lower costs than if they managed this themselves.

Using combined services like Amazon Global Logistics, Amazon Global Selling SEND, the Partner Carrier Program and Amazon Warehousing and Distribution, sellers gain access to optimised inventory placement.

This results in automated replenishment and reduced shipping and storage costs.

Its advanced, fully automated capabilities are behind the success and delivery speed of Amazon as it oversees end-to-end supply chain efficiency.

In 2025, Amazon had its fastest year to date. More than 13bn items were delivered to Prime members around the globe on the same or next day.

"A key part of the magic of we have achieved these super fast speeds is our AI-powered fulfillment network which continued to get better and better," says Dharmesh Mehta, Vice President, Selling Partner Services at Amazon.

"It drives how we partner with sellers to ensure we have the right quantities of their products and that we have placed inventory closer to customers, providing faster delivery speeds for a broader selection of products while reducing shipping distances and costs.

"When customers can get what they want faster, they shop more often in our store and more and more independent sellers win.

"That's why I love our commitment to speed, selection and savings - it delights customers and helps more and more sellers thrive."

All supply chain, sustainability, Scope 3 and net zero leaders should attend:

• Procurement and Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Procurement and Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Sustainability LIVE, these events brings together CSCOs, CSOs and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.
Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Enhancing logistics for sellers

Through Supply Chain by Amazon, the company has established itself as a leading third-party logistics (3PL) service.

However, its digitisation challenges other logistics providers to compete through data integration capabilities as well as physical transport.

Supply Chain by Amazon offers the complete end-to-end operational ease and visibility that global small and medium-sized businesses (SMBs) require to stay competitive.

The complete integration of global ocean freight, warehousing and last-mile delivery into a single dashboard can be costly. Amazon offers its services to SMBs, making it a reliable and affordable partner.

Sellers can ship inventory in bulk to Amazon Warehousing and Distribution (AWD), where it is stored cost-effectively.

As soon as distribution centres receive products, they become buyable, but can be stored as long as needed.

The bulk inventory stored by AWD automatically replenishes products in the Amazon fulfilment network. Whether the consumer buys on Amazon or via Buy With Prime, Amazon handles the delivery.

By utilising AWD auto-replenishment, businesses can undergo end-to-end supply chain support, gaining efficiency boosts and cost savings.

Automation trends in logistics

Logistics companies and supply chains around the world have increasingly become automated. This is necessary to stay afloat with geopolitical turbulence and meet consumer demand.

Labour shortages have also proven disruptive to supply chains, with an ageing workforce, growing skills gaps and a lack of clear career progression.

Now, distribution centres and warehouses are looking towards automation and robotics to meet fulfilment demand.

Many are implementing AI solutions across manual tasks so humans can work on more important processes.

According to Walmart, automation across the supply chain has resulted in a reduction in shipping costs by 30%, as well as significant increases in productivity transformation.

Big brands around the world have been partnering with technology companies to manage their supply chains. Platforms like Kinaxis, SAP, Oracle, o9 and Blue Yonder are helping with the automation process.

These solutions aid with planning, transportation management, returns, real-time visibility and scenario modelling.

Global disruptions have demonstrated that if companies do not invest in automating their supply chains, they risk fragmentation, delays and extra expenditure.