With Amazon capturing over $196B in ecommerce sales in 2017, according to eMarketer, there are huge opportunities for sellers and vendors alike to get more out of Amazon. However, the vast majority of sellers aren’t doing the small things right, which can make all the difference.

1. Copyright 2017 - Q4 Amazon Virtual Summit
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The 2018
Amazon Virtual Summit

2. ● Session Recording + Slides Will Be Sent Out
● Join in the Poll Questions!
● Submit Questions to Our Panelists
Today’s Logistics

3. Day 1
The Growing Necessity To Brand On Amazon
Day 2
How To Set Your 2018 Goals & Smash Them
Day 3
Secrets To A Lean Amazon Supply Chain
Amazon Virtual Summit Details

4. Overview
Founded in 2007
Google Premier Partner
400+ Active Retail Clients
Top 50 Fastest Growing Company San Diego
D E L I V E R I N G
L A S T I N G
R E S U L T S F O R O U R
C L I E N T S
Solutions
Retail-focused PPC & Shopping
Amazon Sales Acceleration
Facebook Performance Marketing
Creative Services
About CPC Strategy

5. Jay Lagarde
Founder and CEO
Ken Furlong
Director of Product
Today’s Speakers
Copyright 2018 - The Amazon Virtual Summit

7. Today’s Agenda
● The criticality of lead time for profitability
● Tactics for driving down lead times
● Know your real costs: how local optimization
hides large costs
● Pros and Cons of different Amazon supply
chain models
● How Lean strategies increase business agility

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STACK TEXT ROW 2Criticality of Lead Times for Profitability

9. The Criticality of Lead Times for Profitability
1. The longer your lead times, the
less you can capitalize on near
term demand.
Lost Revenue
Lost Capital
Copyright 2018 - The Amazon Virtual Summit

10. The Criticality of Lead Times for Profitability
1. The longer your lead times, the
less you can capitalize on rising
demand.
2. The longer your lead times, the
further into the future you need
to forecast – and the less
reliable your forecasts will be.
Copyright 2018 - The Amazon Virtual Summit

11. The Criticality of Lead Times for Profitability
1. The longer your lead times, the
less you can capitalize on rising
demand.
2. The longer your lead times, the
further into the future you need
to forecast – and the less
reliable your forecasts will be.
3. The longer your lead times, the
more inventory you will have in
your supply chain.
Copyright 2018 - The Amazon Virtual Summit

12. The Criticality of Lead Times for Profitability
1. The longer your lead times, the
less you can capitalize on rising
demand.
2. The longer your lead times, the
further into the future you need
to forecast – and the less
reliable your forecasts will be.
3. The longer your lead times, the
more inventory you will have in
your supply chain.
$
$
$
$
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STACK TEXT ROW 2Driving Down Lead Times

14. From your Warehouse to Amazon
● Automate shipment setup
● Rigorously follow prep rules
● Synchronize inbound and
outbound operations
● Use Amazon-partnered carriers
● Parcel vs LTL vs FCL
Copyright 2018 - The Amazon Virtual Summit

15. From your Suppliers to You
● Speak your supplier’s order
language
● Automate orders
● Communicate your forecast
● Consider smaller, more frequent
orders
● Pay on time
● Build a supply-chain partnership
Copyright 2018 - The Amazon Virtual Summit

16. From your Suppliers Directly to Amazon
● Training
● Prep: box labels, shipping labels,
etc.
● Supply chain connect
● Amazon sticker service can be
efficient when needed
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17. Copyright 2017 - Q4 Amazon Virtual Summit
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How Local Optimization Hides Big Costs

18. Know Your Real Costs
● Holding Costs
○ Physical Space
○ Storage Solutions
○ Unit Tracking, (Re)Sorting
○ FBA Storage Fees
○ Perishability
○ Insurance, Utilities, etc.
● Opportunity Costs
● Demand Risk
● Etc.
Copyright 2018 - The Amazon Virtual Summit

19. Local Optimization
Volume Discounts
Copyright 2018 - The Amazon Virtual Summit

20. Local Optimization
Volume Discounts
● What’s the holding cost per
unit?
● Will you still have room to
maneuver (literally or
figuratively)?
● Would your suppliers actually
prefer a different structure?
Copyright 2018 - The Amazon Virtual Summit

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Pros & Cons of Different
Amazon Supply Chain Models

22. Supply Chain Models
Local Direct Cross Dock
Copyright 2018 - The Amazon Virtual Summit

23. Local
ConsPros Use for:

24. Local
ConsPros Use for:
● Multi-channel flexibility
● Potentially lower cost
structure than Direct
(because of FBA storage
fees)
● Protect competitive
advantages and
information
● Opportunity to provide
value-add in the form of
customized packaging and
bundling

25. Local
ConsPros Use for:
● Holding Costs
○ Facility
○ Personnel / Time
■ In-Processing
■ Organization
■ Out-Processing
● Multiple Shipping Events
● Multi-channel flexibility
● Potentially lower cost
structure than Direct
(because of FBA storage
fees)
● Protect competitive
advantages and
information
● Opportunity to provide
value-add in the form of
customized packaging and
bundling

26. Local
ConsPros Use for:
● Multi-channel Kits
● Multi-channel SKUs that
cannot be direct shipped
● Low-holding-cost SKUs
with higher than average
demand variability
● Holding Costs
○ Facility
○ Personnel / Time
■ In-Processing
■ Organization
■ Out-Processing
● Multiple Shipping Events
● Multi-channel flexibility
● Potentially lower cost
structure than Direct
(because of FBA storage
fees)
● Protect competitive
advantages and
information
● Opportunity to provide
value-add in the form of
customized packaging and
bundling

27. Direct
ConsPros Use for:

28. Direct
ConsPros Use for:
● Single shipping event
● No facility costs
● No time / handling costs
● No personnel costs

29. Direct
ConsPros Use for:
● Potentially higher cost
structure due to FBA
storage fees
● Can’t pool inventory
between multiple channels
● Transparency of your
supply chain (both to your
supplies and your
channels)
● Single shipping event
● No facility costs
● No time / handling costs
● No personnel costs

30. Direct
ConsPros Use for:
● High holding cost SKUs
● Single channel SKUs
● Commoditized SKUs
(assuming they can be
direct shipped)
● Potentially higher cost
structure due to FBA
storage fees
● Can’t pool inventory
between multiple channels
● Transparency of your
supply chain (both to your
supplies and your
channels)
● Single shipping event
● No facility costs
● No time / handling costs
● No personnel costs

31. Cross Dock
ConsPros Use for:

32. Cross Dock
ConsPros Use for:
● Lower / no facility costs
● Lower personnel / time
costs
● Protect competitive
advantages and
information
● Opportunity for QA
● Opportunity to provide
value-add in the form of
customized packaging and
kitting

33. Cross Dock
ConsPros Use for:
● Juggling multiple
shipments can be tricky
with limited space,
personnel, and time.
● More difficult to pool
inventory between
channels
● Lower / no facility costs
● Lower personnel / time
costs
● Protect competitive
advantages and
information
● Opportunity for QA
● Opportunity to provide
value-add in the form of
customized packaging and
kitting

34. Cross Dock
ConsPros Use for:
● High holding cost SKUs
● Single channel SKUs
● Commoditized SKUs
● SKUs that have a higher
than usual defect rate
● SKUs for which custom
packaging or stickering is
advantageous or required
● Certain types of kits
● Juggling multiple
shipments can be tricky
with limited space,
personnel, and time.
● More difficult to pool
inventory between
channels
● Lower / no facility costs
● Lower personnel / time
costs
● Protect competitive
advantages and
information
● Opportunity for QA
● Opportunity to provide
value-add in the form of
customized packaging and
kitting

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36. Lean Strategies
● Help you capitalize on rising demand or avoid
discounting because of falling demand.
● Reduce quality issues in in-processing, thereby
reducing your out-processing (and, therefore,
lead times).
● Reduce the amount of capital and/or physical
space you have tied up, thus increasing your
ability to stock new SKUs as demand changes.
Lead Times:
Drive them down!
Know Your
Costs
And don’t optimize
locally!

37. Copyright 2018 - The Amazon Virtual Summit
FBA Supply Chain Optimization

38. Jay Lagarde
Founder and CEO
Ken Furlong
Director of Product
Questions for Today’s Speaker(s)?
Copyright 2018 - The Amazon Virtual Summit