Looks like Amazon isn't cutting back everywhere

Amazon opening one of the largest FC in the country in Mesa, AZ. Apparently, they aren’t laying off and closing warehouses everywhere.

Unfortunately, the article is behind a pay wall.

https://www.bizjournals.com/phoenix/news/2023/06/09/amazon-opens-big-mesa-facility.html?csrc=6398&utm_campaign=trueAnthemTrendingContent&utm_medium=trueAnthem&utm_source=facebook&fbclid=IwAR2CBKAMFNEqXmy49kQYJYGuTubnJMft9HsM0kTIfHNaZQuo-76TYOno8pM

“The Seattle-based company opened a new 1.2 million-square-foot storage and distribution center Friday at 8560 East Elliot Road, just off the Loop 202 in Mesa. Going by the name KRB9, the facility will be used for storage for third-party sellers.”

-Ana

This one is available:

I found this interesting, not sure that I understand…

Right, so market penetration still fits with amazon going for much faster delivery in line with customer centricity - but they will do what musk did, which is try to keep things running with the minimum effective staff - it’s never a perfect trimming, but sure does cut into things and affects a lot of people

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Somehow I doubt Bezos will be sleeping in any one facility to straighten things out though.

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There are other two tiered warehouses. This appears to be one of those which supplies other FCs.

Potential benefits

1 3P sellers can ship to fewer FCs without paying for inventory placement services.
2. Amazon’s has simpler forecasting needs.
3. Lower transportation charges for Amazon.
4. Greater potential for automation in these facilities.
5. Other economies of scale.

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Or open in a private window.

I think pretty much most big companies have been doing this since forever.

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I think @lake you nailed it here. This is the new FBA program where you can store extra stock and they replenish it automatically from these warehouses.

-Ana

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Depends on budgets and allocations - when have reserves and funds to do fuq all you tend to do it - then when the trimmings happen you realize you can do the same without all the extra fat…and then people rightly/wrongly protest and virtue signal

It’s all lies

Thanks @lake and @Best_Handmade_Soaps! I knew there were DCs and FCs, but I didn’t realize that there were also “downline” DCs.

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There’s actually a new program they just rolled out where you can send in like a container load and they will replenish stock in the normal warehouses from there. As I understand it there’s no storage limit on those warehouses either. I can’t remember the name of the program right now for some reason. I think they sent an email about it.

-Ana

It’s known as the AWD (an ‘Amazonese’ acronym for “Amazon Warehousing and Distribution”) Program, aka “Amazon Upstream Storage” (aka “Downstream” in certain circles), and you’re right - Amazon has dispatched more than a few email missives regarding it.

One can begin learning more about this topic from the ‘Overview’ section of the Amazon Warehousing and Distribution (link, Seller Central) Dashboard, and from the SHC’s (“Seller Help Content” in ‘Dogtamerese’) ‘parent page’ for the subject, Amazon Warehousing and Distribution (AWD) [link, SHC], as well as from the Help Hub articles which are nested beneath that ‘parent’ in the left-hand ‘tree’ which replaced the old SHC Index/Table of Contents.

As @ASV_Vites, @VTR, and others discovered when Amazon really began hyping the program in the late summer of 2022, there are some stringent restrictions - some nonsensical, some not - as to what goods are eligible; most of the chatter that I’ve seen, in both the OSFE & the NSFE alike, seems to be about that, or about the monkey wrench thrown into various workflows that Amazon’s use of “IUSL Virtual Warehouse” - and scanty documentation concerning that - produced.

The available evidence seems to suggest that the kinks are being slowly worked out of the program, and I think it’s probable that the Mesa, AZ facility is likely destined to be a part of that - certainly, members of the AGL (“Amazon Global Logistics”) Program seem to be filling up the pipeline rapidly - but I would not lightly dismiss the cautionary tale to be found in the 31Dec2022-begun thread AWD Experience (Dec 31 2022) Full Container FCL Amazon Warehouse & Distribution Experience (link, NSFE) over in the wannabe forum NSFE.

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Thank you for pulling this from your all knowing archive of stuff that matters. I posted in the welcome thread , but I can truly say that now that you are back with us the Universe is in perfect order once again.

-Ana

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You are very welcome, my friend - I cannot adequately put into words just how grateful I am that @papy, @Tallytony, @Pepper_Thine_Angus, and @VTR created the SAS/#BSFE forum, and have graciously allowed me to participate, and I deeply appreciate your kind words of welcome.

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